02 October 2012 06:16 [Source: ICIS news]
By Heng Hui
Prices were assessed at $1,550-1,600/tonne (€1,209-1,248/tonne) FOB (free on board) NE (northeast) Asia and at $1,550-1,650/tonne CIF (cost, insurance and freight)
POM prices had fallen by around $100/tonne since May this year, when ICIS started tracking the market.
Buying interest has been persistently low, with northeast Asian producers facing competition in the key
Take-up of the product in
World demand for POM is estimated at 810,000 m tonne/year, with Asia accounting for more than 60% of the total.
POM’s main applications are in the automotive and electrical sectors, which are experiencing falling demand as consumer spending weakens in the
Automobile manufacturers have been cutting production, taking into account weaker demand.
Statistics from the China Association of Automobile Manufacturers (CAAM) showed that
Concerns about the global economy still linger, weakening consumer confidence and purchasing power, according to POM buyers.
The US’ third quantitative easing measure announced on 13 September initially triggered expectations of better demand in general that will flow through the POM sector, as this will, in effect, flush the global financial system with liquidity.
For Japanese producers, the strong yen against the US dollar has kept their cost of production high, stripping them of ability to bring down offers.
Cost-push factors more than demand will drive up POM prices in the near term, market sources said.
The commodities markets’ initial exuberance over the QE3 implementation will soon wear off with product prices likely to lose their upward momentum with no material improvement in sales volumes.
Spikes in commodity prices may also not be welcomed in
($1 = €0.78)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|