SunSirs: Supply Increased, POM Market Continued to Be Weak

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 SunSirs, as of May 26th, the average factory price of domestic POM was 12,950.00 RMB/ton, a 2.63% decrease from the price level at the beginning of the month.

Analysis review

In terms of raw materials:

According to the analysis system chart of the commodity market of SunSirs, the formaldehyde market gradually declined this week. The raw material methanol had declined significantly, and formaldehyde manufacturers were operating normally. However, downstream panel factories had weak demand, and formaldehyde shipments were under significant pressure. Inventory continued to be high, and the formaldehyde market continued to decline.

On the supply side:

The operating rate of domestic POM enterprises had rebounded, some maintenance enterprises in the early stage resumed work, and the industry's operating rate rebounded to nearly 94%. The high load situation continued, and the inventory pressure of most enterprises gradually accumulated, and processing profits also gradually decreased.

In terms of demand:

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

Market outlook

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

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