12 February 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European polyacetal (POM) first-quarter contracts have settled at a rollover from the fourth quarter of 2012, the majority of buyers and sellers confirmed on Tuesday.
Despite weak demand, supply has been reduced in line with consumption, leading to balanced conditions.
Buying interest is low because of poor macroeconomic conditions, which have limited consumer purchasing power.
The small- and mid-sized automotive market has been most severely affected by the general economic downturn. The premium automotive industry, however, has been largely shielded from the negative effects of poor macroeconomic conditions because of exports to Asia resulting from upward social mobility – particularly in China.
Some market players estimate demand in February 2013 at up to 20% below February 2012 levels. Other players, however – mainly those connected to premium automotives – said demand in January 2013 was marginally above January 2012 levels.
Natural grade POM first -uarter contract prices finalised at €2.20-2.30/kg ($2.93-3.07/kg) FD (free delivered) NWE (Northwest Europe).
($1 = €0.75)
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