The global Polyoxymethylene (POM) market has shown varied price trends in early 2025, with China experiencing a modest price increase while Germany maintained price stability. While China’s market is influenced by post-holiday production ramp-ups and policy-driven shifts, Germany’s market remains subdued due to weaker automotive demand and economic uncertainties. Both regions, however, are navigating cost pressures and supply chain adjustments, setting the stage for potential shifts in the coming months.

In China, POM prices rose by 1.2% in the first week of February 2025, driven by stable supply conditions and cautious demand recovery. The manufacturing sector, which had slowed ahead of the Lunar New Year, began to rebound, supported by ample raw material availability and improved supplier delivery times. The implementation of anti-dumping duties on imported POM copolymers from key regions—including the U.S., EU, Japan, and Taiwan— further bolstered domestic production, shielding local manufacturers from under-priced imports.

Demand for POM showed mixed signals, with traditional automotive sales declining due to adverse weather and policy shifts, while New Energy Vehicle (NEV) sales surged, boosting demand for high-performance POM components. Downstream buyers, anticipating future price escalations, engaged in proactive stockpiling, tightening market liquidity and pushing prices upward.

In contrast, Germany’s POM market remained stable, balancing steady supply with subdued demand. Production levels were consistent, supported by stable feedstock costs, though rising energy prices, particularly for gas, added to cost pressures. Non-integrated producers, however, continue to face higher electricity expenses linked to gas derivatives, contributing to overall cost pressures, yet supply chains remained efficient, with faster delivery times reported.

Demand, however, was lacklustre, particularly from the automotive sector, which saw a 2.8% decline in new car registrations in January 2024. Buyers, having destocked at the end of 2024, held sufficient inventories, reducing the need for additional purchases. Despite this, business optimism has grown, driven by expectations of lower interest rates and a potential economic recovery, hinting at a future uptick in POM demand.

Looking ahead, the POM market in both China and Germany is poised for potential shifts. In China, the combination of anti-dumping measures, rising NEV demand, and strategic stockpiling is likely to sustain upward price pressure. Meanwhile, Germany’s market may see a gradual recovery in demand as economic conditions improve and automotive production ramps up.

However, both regions will need to navigate ongoing cost pressures, particularly from energy and raw material prices, which could influence future pricing trends. As global economic uncertainties persist, the POM market will remain sensitive to both regional and international developments, shaping its trajectory in the months to come.