SunSirs: Tight Supply, No Pressure on Inventory, China POM was Rising in July

In July, the domestic POM market continued to show a positive trend, with spot prices continuing to rise. According to the Commodity Market Analysis System of SunSirs, as of August 1st, the mixed price of domestic POM was 12,850 RMB/ton, a decrease of +15.77% compared to the price level in early July.

According to the analysis system chart of the commodity market of SunSirs, the price of formaldehyde in the Shandong region increased last month. The raw material methanol market is fluctuating and rising, and formaldehyde manufacturers are operating normally. The demand for downstream panel factories is mainly maintaining demand. The formaldehyde market transactions are average, and formaldehyde mainly rises with the fluctuations of raw materials. It is expected that the price of formaldehyde in Shandong will mainly increase slightly in the near future.

The operating rate of domestic POM enterprises remained high in July, with a current industry load of approximately 92% approaching full capacity. The high load situation continues, but after initial inventory removal, most enterprises have no inventory pressure, and even have negative inventory situations. In addition, some enterprises have maintenance plans in the later stage, and the current POM supply is tightening.

At present, the operating level of downstream POM enterprises in China is not high, but due to the stimulation of tight supply, there is a speculative atmosphere in the market. Although the enthusiasm for stocking is average, the order transaction position is high. Overall, the demand side's support for POM spot prices is average.

The POM market rose rapidly in July. The operating rate of domestic polymerization plants remains high, and there is a tight supply of goods on site. There is currently no industry inventory pressure, and suppliers have strong support for spot goods. On the demand side, it is expected that due to the impact of high temperatures, power restrictions, and tropical cyclones in the later stage, the operating rate of terminal enterprises may decline. The release of consumption will be suppressed, and there may be insufficient momentum to drive spot prices. Traders' confidence remains strong in the short term, and the sentiment of speculation on the market remains strong. It is expected that as the speculative atmosphere fades out in the future, the impact of weak demand will gradually rise, which may weaken the trend of the POM market.

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