In the first week of April, the domestic POM market was operating passively, with a significant drop in spot prices. According to the Commodity Market Analysis System of SunSirs, as of April 7th, the mixed price of domestic POM was 12,375 RMB/ton, with a price increase or decrease of 5.71% compared to the beginning of the month.

Last week, the formaldehyde market price in Shandong region fell. The weak sorting operation of raw material methanol has led to a decline in formaldehyde prices due to its impact. Downstream maintains essential procurement, with average receiving sentiment. Formaldehyde manufacturers are actively shipping, and trading has weakened during the holiday period. Traders are trying to lower prices and take orders, which has loosened overall support for POM costs.

In terms of supply: Recently, the operating rate of domestic POM enterprises is still at a high level, with an overall load rate of around 89%. The inventory position of most enterprises has risen, and the situation of accumulated inventory has spread. Currently, some manufacturers are gradually lowering their factory prices. Overall, supply pressure has surged, and the supply side's support for POM spot is weak.

In terms of demand: Last week, downstream POM enterprises in China had poor stocking conditions, and most of them just needed to pick up goods to maintain production. In the first half of the week, POM took over the previous weak market, and buyers had a certain level of waiting for a decline. During the Qingming holiday, businesses were delisted and trading on the exchange was suspended. Under the dual blow, spot circulation is slow, and the digestion of low-priced goods is weak. Traders continue to lower their prices in order to take orders. Overall, there is a significant drag on the spot price of POM on the demand side.

Last week, the POM market showed a significant decline. The operating rate of domestic polymerization plants is high, enterprise inventory has significantly accumulated, supply side pressure has rapidly increased, and manufacturer pricing continues to be lowered. The bearish sentiment on the market continues to ferment, and downstream consumers have not followed up well, forcing merchants to lower their prices and take orders.

Tangshan Zhonghao and Yankuang Luhua have recently made maintenance arrangements, and there is an expectation of supply reduction in the future, which may share some of the supply pressure. However, the market is flooded with low-priced goods, and the recovery of demand has yet to be seen. Currently, it is difficult to find active guidance from POM, and it is expected that the short-term market may continue to decline due to multiple bearish fundamentals.

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