18 March 2013 07:10 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s spot polyacetal (POM) prices are likely to remain range-bound in the near term amid subdued demand, market sources said on Monday.
Buying interest has been persistently low, with northeast Asian producers saying that they are facing competition in the key China market from lower-priced domestically produced material.
Meanwhile, sellers said they are unwilling to reduce their prices because of high production costs. Asia is saddled with high POM inventory, which has prompted some regional producers to cut their plant operating rates in consideration of their squeezed margins.
According to market participants, the likelihood of an upside for POM prices in the near term is limited given that the market remains oversupplied amid lingering concerns about the global economy
POM’s main applications are in the automotive and electrical sectors, which are experiencing weakening demand as consumer confidence and spending fall amid global macro headwinds.
Spot POM prices were assessed at $1,480-1,540/tonne (€1,140-1,186/tonne) CIF (cost, insurance % freight) China for the week ended 12 March, according to data from ICIS.
($1 = €0.77)
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