Price trend

Recently, the domestic POM market has been operating in a weak state, with spot prices often decreasing. According to the Commodity Market Analysis System of the Business Society, as of October 23, the mixed price of domestic POM was 14375 yuan/ton, a decrease of -4.49% compared to 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 in Shandong Province has been experiencing strong fluctuations recently, with the price of raw material methanol showing a slight downward trend and poor cost support. Downstream demand procurement is maintained, while transactions in the formaldehyde market are flat, with mixed market fluctuations and market consolidation as the main trend.

On the supply side:

In the early stage, multiple domestic POM enterprises resumed work or increased their load, but the overall operating rate decreased last week, with an average load drop of about 3% to 74%. In terms of source of goods, most enterprises’ warehouses undertake low levels in the early stage, and their inventory positions are still acceptable. However, due to the impact of early profit market competition, it has dragged down the profit space of merchants and aggregation factories. The supply side has loosened its support for POM spot goods.

In terms of demand:

At present, the operating level of downstream POM enterprises in China is not high, and some enterprises need to digest their pre stocking inventory. On market trading is weak, making it difficult to release POM consumption. At the same time, many business owners have bearish sentiment, and following up on operations is even more cautious. Overall, the demand side has poor support for POM spot prices.

Future Market Forecast

The recent trend of the POM market has been fluctuating and declining, and last week’s market weakness continued. The operating rate of domestic polymerization plants has slightly decreased, and the overall supply of goods on site is abundant, while the support of suppliers for spot goods has weakened. On the demand side, terminal enterprises are operating at a low level, and some raw material inventory has not yet been digested. Be cautious in purchasing operations and resist high priced sources. There is a lack of trading on the market, and competition among traders is intensifying. Overall, it is difficult to find both supply and demand side benefits in the current POM market, and the industry’s supply storage is expected to be broad. Therefore, it is expected that the POM market may continue to operate in a weak trend in the near future.