SunSirs: Market Destocking, China POM Market Rebounded after a Decline in November

In November, the domestic POM market stopped falling and rebounded, with a narrow increase in spot prices. According to the Commodity Market Analysis System of Shengyishe, as of November 30th, the mixed price of domestic POM was 13,000 RMB/ton, with a price increase or decrease of 1.36% compared to the beginning of the month.

In November, the formaldehyde market price in Shandong region slightly declined. The raw material methanol market is fluctuating and consolidating, with average cost support. Downstream board factories continue to have weak demand due to environmental impact. Formaldehyde manufacturers are operating normally, and production enterprises are under great pressure to ship. The market is declining, which provides poor support for POM.

After the overall operating rate of domestic POM enterprises fell in November, it rebounded. At the beginning of the month, the industry's device load was at a high level of over 80%, and the range fell below 77% before rebounding. At the end of the month, the overall load returned to 81%. Due to the high supply pressure at the beginning, the decline in spot prices was concentrated in the first ten days. Subsequently, after continuous digestion of market supply, most enterprise inventories returned to low levels, and the supply side's support for POM spot goods has been restored. However, it is feared that inventory will accumulate in the future.

In November, the production level of downstream POM enterprises in China was average, with enterprises mainly digesting inventory. On exchange trading was weak, and there was no significant increase in POM consumption. After the price stopped falling and rebounded, the operators followed up with more caution, and their resistance to high priced goods returned. Overall, the demand side's support for POM spot prices is average.

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