27 May 2013 08:33 [Source: ICIS news]
SINGAPORE (ICIS)--Asia’s spot polyacetal (POM) prices softened in May, as prevailing weak end-user demand exerted downward pressure on prices, market sources said.
According to market participants, end-users were purchasing only on a need-to basis, as orders for their downstream products slowed amid the global economic slowdown.
In China, supply is expected to lengthen over the following weeks with the planned restarts of several POM facilities.
Spot prices were last assessed at $1,400-1,500/tonne (€1,082-€1,159/tonne) CFR (cost & freight) China on 21 May 2013, according to ICIS data.
Looking forward, market participants largely agree that the near-term outlook for POM seem relatively stable. Producers are unlikely to lower their offers further, because of squeezed margins, they added. However, it would be difficult for producers to hike their prices in view of subdued demand and lengthening supply, according to the market players.
POM’s main applications are in the automotive and electrical sectors, which are experiencing weakening demand as consumer confidence and spending fall.
($1 = €0.77)
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