SunSirs: Consumption Contracted and Supply Increased, China POM Fluctuated and Turned Down in the First Half of October

In the first half of October, the domestic POM market fluctuated and fell, with many spot prices dropping. According to the Commodity Market Analysis System of SunSirs, as of October 15th, the mixed price of domestic POM was 14,850 RMB/ton, a decrease of -1.33% compared to the price level at the beginning of the month.

According to the analysis system chart of the commodity market of SunSirs, the formaldehyde market in Shandong region has been organizing and operating recently. In the past two months, the formaldehyde market has mainly fluctuated slightly, and the market continues to fluctuate in a narrow range after the holiday. The price of raw material methanol has shown a slight downward trend, with poor cost support. Downstream procurement remains in demand, while the formaldehyde market has light trading volume, providing general support for POM.

In the first half of October, multiple domestic POM enterprises resumed work or increased their load, and the overall operating rate increased. At the end of last month, the industry load was about 69%, and after half a month of climb, the overall operating rate is currently approaching 80% and entering a high level. In terms of source of goods, most enterprises' warehouses undertake low levels in the early stage, and their inventory positions are still acceptable. However, due to the impact of early profit market competition, it has dragged down the profit space of merchants and aggregation factories. The supply side has loosened its support for POM spot goods.

In the early stage, the construction level of domestic POM downstream enterprises was not high, but there was still a shortage of goods to stimulate. But after the holiday, the company returned to work slowly and mainly digested the pre stocking inventory. On market trading is weak, making it difficult to release POM consumption. In addition, many business owners have bearish sentiment, making follow-up operations more cautious. Overall, the demand side has poor support for POM spot prices.

In the first half of October, the POM market fluctuated and fell. The operating rate of domestic polymerization plants has increased, the supply of goods on site has increased, and suppliers have loosened their support for spot goods. On the demand side, terminal enterprises operate at a low level and digest inventory. Be cautious in purchasing operations and resist high priced sources. There is a lack of trading on the market, and competition among traders is intensifying. Overall, in the first half of October, it is difficult to find both supply and demand side benefits, and in the short term, there are expectations of supply easing in the industry. Therefore, it is expected that the POM market may continue to experience a weak downward trend in the near future.

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