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SunSirs: Suppliers' Price Rises and Falls are mutually Reflected, and China POM Market Shocks are Sorted Out
December 06 2022 13:59:23SunSirs(Selena)

Recently, the domestic POM market has been reorganized and operated, and the overall price performance has fluctuated. According to the data monitoring of SunSirs, as of December 5, the average ex factory price of domestic POM was 13,933.33 RMB/ton, with a weekly range of +0.48%.

In terms of raw materials, the methanol market has fallen in recent shocks. Although the crude oil rebounded at a low level, the methanol market has only been boosted. The continuous decline in the arrival of coal in Northwest China has led to the continued downward cost support, the continuous recovery of the operating rate of production enterprises, and the continued weakness of demand. Most production enterprises and traders mainly discharge their inventories.

In terms of supply: Recently, the operating rate of domestic POM enterprises has remained at a high level, and the current industry load is generally higher than before, approaching 90%. Imported materials are also abundant, and the price is lower. In terms of processing profit, the enterprise's margin rose by a narrow margin, with a gross profit level of about 2,350 RMB/ton, which is fair.

Demand: the load of POM industry rose last week, and the market supply was abundant. The mentality of producers and traders is supported by the rise of the factory price, but the demand has weakened recently, and there is much room for profit in the on-site shipment negotiation. The enthusiasm of terminal enterprises to prepare goods is average, and the demand follow-up is slightly lagging behind.

At the beginning of December, the POM market was in shock. The load of domestic polymerization plants rebounded, and the overall supply was abundant. The factory price of domestic materials has been raised, while that of imported materials has been lowered. The inventory position rose, while demand was relatively weak. Downstream enterprises mainly digest inventory, and pick up goods mostly in small pieces. It is estimated that China POM market may enter the weak consolidation market in the short term.


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