Polyoxymethylene (POM) prices exhibited divergent trends across key global regions in early December 2024. Prices increased in both China and the U.S., supported by improving automotive demand and evolving supply dynamics, while Germany experienced a slight decline due to weak downstream sectors.

In Germany, POM prices declined as the automotive and construction sectors struggled to maintain momentum. The automotive industry faced persistent challenges, including high production costs, weak domestic demand, and mounting competition from Chinese manufacturers. Regulatory uncertainties, such as the lack of substantial incentives for electric vehicle adoption, further dampened POM demand. Similarly, the construction sector mirrored this trend, with reduced workloads and cautious spending due to ongoing economic instability, which also affected POM consumption. Regional manufacturers responded by scaling down production and focusing on inventory clearance during the year-end destocking cycle. Although port congestion in Hamburg disrupted logistics, declining global container demand helped stabilize POM supply levels, preventing sharper price fluctuations. Stable feedstock costs and subdued market activity kept any significant POM price volatility at bay, maintaining a soft market tone.

China, by contrast, experienced a slight uptick in POM prices, supported by a recovery in the automotive sector. Government-led trade-in policies and an 11.7% year-on-year rise in November passenger car registrations bolstered demand, offsetting weaker activity in the construction sector, which remained constrained by funding challenges. Stable production levels and improved freight availability ensured sufficient supply to meet domestic demand, while year-end destocking and discounted pricing tempered more significant price gains. Rising intra-Asian freight costs also signal potential upward cost pressures in the coming months. 

In the U.S., POM prices initially stabilized before registering a modest increase as balanced supply-demand conditions evolved amid shifting market dynamics. November vehicle sales showed improvements year-over-year and month-over-month, bolstered by year-end promotional activity. While steady feedstock costs supported earlier price stability, logistical disruptions at West Coast ports and elevated transpacific freight rates introduced upward cost pressures. Some manufacturers increased purchases to hedge against potential tariffs, with the automotive sector's heavy reliance on Canadian imports adding further complexity. Meanwhile, high interest rates continued to weigh on the construction and manufacturing sectors, moderating the pace of price increases. 

As per ChemAnalyst, regional disparities in POM pricing are likely to persist. In Germany, subdued industrial demand and economic headwinds may sustain downward pressure, though regulatory changes in early 2025 could raise operational costs. China’s automotive sector recovery is expected to underpin prices, despite ongoing construction sector challenges and global trade uncertainties. In the U.S., further price increases could materialize if demand strengthens, particularly in the automotive sector, though broader economic uncertainties and high interest rates may temper significant upward momentum.