Price trend

Recently, the domestic POM market has remained stable with minor fluctuations, and spot prices have mostly remained stable. According to the Commodity Market Analysis System of Shengyishe, as of January 15th, the mixed price of domestic POM was 13050 yuan/ton, which is the same as the price level at the beginning of the month.

Cause analysis

In terms of raw materials:

According to the analysis system chart of the commodity market in Shengyishe, the formaldehyde market prices in Shandong region have fluctuated and fallen recently, with raw material methanol prices fluctuating and poor cost support. As the Spring Festival approaches, downstream board factories are taking early leave, and demand continues to decline. The formaldehyde market is mainly experiencing a slight decline.

In terms of supply:

Recently, the overall operating rate of domestic POM enterprises has rebounded. The industry equipment load is approximately 84%. There are relatively few maintenance arrangements in the future, and it is expected that POM production will remain at a high level. Fortunately, the inventory position of most enterprises is still not high, and the supply side still has sufficient support for POM spot goods.

In terms of demand:

Recently, downstream POM enterprises in China have been operating at a poor level, with companies mainly digesting inventory. On exchange trading was weak, and POM consumption continued to be weak. The operator needs to follow up with a small amount of urgent needs, operates cautiously, and resists high priced sources of goods. Although there may be pre holiday stocking operations in the near future, overall, the demand side’s support for POM spot prices is weak.

Future Market Forecast

Last week, the POM market remained stagnant. The operating rate of domestic polymerization plants has increased, and the inventory position of enterprises is low, resulting in moderate pressure on the supply side. Manufacturers have stabilized market confidence through strong market operations, but some merchants are under high shipping pressure. On the demand side, terminal enterprises are operating at a low level, and may continue to have holidays before holidays, leading to a decrease in load. Purchasing operations are cautious, and they are resistant to high priced goods, resulting in weak on-site trading. It is expected that the POM market may operate weakly in the near future.