SunSirs: China POM Market was Weak previously

In early December, the domestic POM market remained stagnant and weak, with spot prices remaining stable. According to the Commodity Market Analysis System of SunSirs, as of December 8th, the mixed price of domestic POM was 13,000 RMB/ton, which is the same as the price level at the beginning of the month.

Recently, the price of formaldehyde in the Shandong region has declined. The price of raw material methanol fluctuates and consolidates, with average cost support. Downstream demand is poor, the market trading atmosphere is relatively cold, and the market is declining, which provides poor support for POM spot prices.

In early December, the overall operating rate of domestic POM enterprises increased. The industry's device load increased from 81% at the beginning of the month to the current 88%. In the early stage, the market supply has been reduced, and most enterprises have returned to low levels of inventory. Although there is no pressure on the current inventory of enterprises, they are gradually accumulating inventory, and the supply side has limited support for POM spot goods.

In early December, the operating level of downstream POM enterprises in China was average, with enterprises mainly digesting inventory. On exchange trading was weak, and POM consumption did not show any improvement. The operator needs to follow up with a small amount of urgent needs, operates cautiously, and resists high priced sources of goods. Overall, the demand side has poor support for POM spot prices.

The POM market remained stagnant in early December. The operating rate of domestic polymerization plants is increasing, and there is abundant supply of goods on site, but the inventory position of enterprises is still not high. Manufacturers have stabilized the confidence of traders through market support operations, but some merchants have increased their shipping pressure, and actual orders tend to be sold at a discounted price. On the demand side, terminal enterprises operate at a low level, with cautious purchasing operations and resistance to high priced sources, resulting in average on-site trading. It is expected that the POM market will remain stagnant in the near future.

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