SunSirs: Supply Side Profits Continue to Rise Strongly in August, with China POM Rising Strongly

The domestic POM market was strong in August, and spot prices continued to rise. According to the Commodity Market Analysis System of Business Society, as of August 31, the mixed price of domestic POM was 14,350 RMB/ton, a decrease of +13.66% compared to the price level at the beginning of the month.

According to the analysis system chart of the commodity market of SunSirs, the price of formaldehyde in the Shandong region increased in August. From the above chart, it can be seen that the formaldehyde market has been rising since the end of June and continues to rise this 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, and production enterprises are under great pressure to ship. Formaldehyde mainly increases with fluctuations in raw materials, which provides reasonable support for POM costs.

The overall operating rate of domestic POM enterprises decreased this month, and due to frequent maintenance, the industry load decreased to below 83%. Although the high load situation continued last month, inventory was low in August, and most companies had no inventory pressure, even experiencing negative inventory oversold. The tight supply of goods combined with supply contraction has led to sustained strong support for POM supply.

At present, the operating level of downstream POM enterprises in China is not high, but due to the stimulation of tight supply, the atmosphere of speculation on the market remains high. The enthusiasm for stocking is acceptable, and the transaction position of the order is high. Overall, the level of spot price support for POM on the demand side is acceptable.

The POM market continued to rise in August. The high operating rate of domestic polymerization plants has declined, and the shortage of goods on site has worsened. There is currently no industry inventory pressure, and suppliers have strong support for spot goods. On the demand side, the impact of high temperatures, power restrictions, and other factors may lead to a decrease in the operating rate of terminal enterprises. However, there are frequent market chasing operations, and downstream users have slight resistance to high priced goods. Traders' confidence remains strong, and the sentiment of speculation on the market remains strong. At the beginning of September, some enterprises still have maintenance plans, and it is expected that the POM market will continue to strengthen in the future.

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