SunSirs: Supply and Dmand Game, China POM Market Remains Deadlocked

In mid December, the domestic POM market remained stable with minor fluctuations, and spot prices mostly remained stable. According to the Commodity Market Analysis System of SunSirs, as of December 18th, the mixed price of domestic POM was 13,050 RMB/ton, an increase of 0.38% from the beginning of the month.

Recently, the price of formaldehyde in the Shandong region has risen and then fluctuated horizontally. The price of raw material methanol has increased in the early stage, which is beneficial for the cost of formaldehyde. However, downstream panel factories have average demand, market trading sentiment is average, formaldehyde manufacturers are shipping normally, and the support for the POM market is still sufficient.

In mid December, the overall operating rate of domestic POM enterprises slightly adjusted. The industry equipment load is about 86%. In the early stage, the market supply has been reduced, and most enterprises have returned to low levels of inventory. At present, there is no pressure on the inventory of enterprises, and the supply side still has sufficient support for POM spot goods.

In mid December, the production 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 trend remained stagnant in mid December. The operating rate of domestic polymerization plants has stabilized, 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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