SunSirs: Supply Side Support, China POM Rose in May in the Off-season

According to the data of SunSirs, the domestic POM market was active in May, with the spot prices of various brands rising at a high level. As of June 1, the average offer price of the POM injection molding sample enterprises in SunSirs was about 15,900 RMB/ ton, up 5.76% compared with the average price at the beginning of the month.

As for formaldehyde in the upstream of POM, in early May, the raw material methanol market mainly rose, while in the middle of the month, methanol fluctuated and fell. At the end of the month, the game was deadlocked in the market, and most of them stayed on the sidelines. Formaldehyde spot price fell with methanol.

Upstream prices fell after rising in May, and POM cost side support weakened. The domestic POM spot price range is still at a high level, with a considerable increase compared with the beginning of May. However, the stalemate in the last ten days of the year has caused the spread of air atmosphere in the market. In addition, it is in the off-season of the industry, so the consumption of downstream factories is difficult to increase. The market price in East China has been affected by the atmosphere of short space in the market. Traders are reluctant to sell, but most of the domestic market is stable. On the supply side, the performance of short-term market supply continued to be compact. Although the unit maintenance work was completed recently, the recovery of industry operation rate was limited, and there was still supply side support in the market.

SunSirs analystsbelieve, the trend of domestic POM market is still strong in May. Formaldehyde and methanol in the upper reaches fell in the second half of the month, and the cost support of POM was weakened. The tight market supply pattern still exists, and the supply side is good for the market. Under the pressure of high cost, the profits of downstream enterprises are compressed, which contradicts the high price supply. At the same time, there is a lack of demand in off-season, and the orders are generally small. Business from reluctant to sell to active shipping, supply and demand game market continued. It is expected that China POM market will continue to adjust in a narrow range in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.