Extensive polyacetal resin expansion in the Chinese market over the years has caused concerns over overcapacity. The four major local producers have closed down and are unlikely to restart due to environmental, quality, and cost issues, while the rest of the remaining manufacturers The profit margin is also less than 50%. Chinese local manufacturers mainly serve the low-end market, including fasteners, fasteners, coffee machines, etc., and have not made progress in more challenging applications such as automobiles. Polyacetal supply and demand Nervous Chinese producers have therefore been hamstrung.
Japan's POM market is expected to remain tight in the next three years. Japan's polyplastics company expects to increase production capacity by 2022, but given China's recent environmental remediation actions, it may increase in China but it is also unclear.
In the automotive sector, with the entry of electric vehicles into the market, plastic products are expected to continue to decline. Polyacetal is widely used in fuel production related components. On the other hand, other resins in the portfolio, such as PPS and PBT can also be Electrification benefits.
Another area of growth for polyacetal resins is factory automation, where resins are used to compress valves and other components. With the increase in the number of laborers in China and rising wage levels, China is investing heavily in factory automation.