In Q1 2024, the global Polyoxymethylene (POM) market exhibited mixed trends due to rising feedstock prices for Formaldehyde and Methanol, alongside strong demand from key sectors such as automotive, consumer goods, industrial manufacturing, and electronics. In South Korea and the USA, the market faced a bearish trend due to reduced demand from downstream industries such as the automotive industry during festivals like Lunar New Year. Conversely, Thailand saw an increase in POM prices driven by significant rises in feedstock Formaldehyde and Methanol costs and robust demand from automotive and consumer goods sectors.
In Q2 2024, the POM market experienced a bearish trend. The South Korean market declined by 2%, Taiwan by 6%, and the USA by 5%. This downturn resulted from lower feedstock costs for Formaldehyde and Methanol, weak demand from key sectors such as automotive, consumer goods, industrial manufacturing, and electronics, along with ample supply. Additionally, high financing costs and reduced consumer spending further suppressed demand, significantly impacting the German construction sector, which faced notable contractions.
By Q3 2024, the Global POM market experienced a bullish trend, with prices around 1340 USD/MT FOB Huston. This trend was due to higher feedstock Formaldehyde and Methanol cost and plant shutdowns, which caused short term supply shortages. Rising freight also contributed to the price increase.
Looking ahead in Q4 2024, POM prices are expected to rise in the global market due to the strong demand from the downstream Automotive, Consumer goods, Industrial manufacturing, Electrical and electronics driven by increased sales during the festive season. Additionally, anticipated increases in feedstock Formaldehyde and Methanol and crude oil prices are expected to impact the pricing dynamics of Polyoxymethylene.