Price trend

This week, the domestic POM market continued to be weak, with spot prices adjusting at a low level. According to the Commodity Market Analysis System of Business Society, as of May 26th, the average factory price of domestic POM was 12950.00 yuan/ton, a 2.63% decrease from 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 of the Business Society, the formaldehyde market has gradually declined this week. The raw material methanol has declined significantly, and formaldehyde manufacturers are operating normally. However, downstream panel factories have weak demand, and formaldehyde shipments are under significant pressure. Inventory continues to be high, and the formaldehyde market continues to decline.

On the supply side:

The operating rate of domestic POM enterprises has rebounded, with some maintenance enterprises resuming work in the early stage, and the industry’s negative rate has rebounded to nearly 94%. The high load situation continues, and the inventory pressure of most enterprises gradually accumulates, leading to a gradual decrease in processing profits.

In terms of demand:

At present, POM terminal enterprises have weak stocking enthusiasm, low operating rates, poor consumption release, and limited impact on spot prices. Traders lack confidence and are more likely to complete task operations by reducing prices and placing orders towards the end of the month. Buyers tend to buy up rather than down, with a wait-and-see mentality. The actual orders are sporadic, and the actual orders are biased towards a single discussion.

Future Market Forecast

This week, the POM market was weak and sorted out. The operating rate of domestic polymerization plants has rebounded and there is ample supply. In addition, the inventory pressure in the industry continues to accumulate, and suppliers are unable to support spot goods. The demand side enterprises have a relatively low demand for replenishment, and some downstream operating rates are low, resulting in a small amount of actual transactions. How much profit is currently available on the market? It is expected that the POM market may continue to be weak in the short term.