SunSirs: Long Short Game, China POM Market was Deadlock

Last week, 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 22, the mixed price of domestic POM was 13,050 RMB/ton, an increase of 0.38% from the beginning of the month.

According to the analysis system chart of the commodity market in SunSirs, the formaldehyde market prices in Shandong region have fluctuated and fallen recently. This week, the raw material methanol prices have fluctuated and fallen, resulting in poor cost support. Downstream board factories frequently take vacations, and procurement efforts have led to a decline in the formaldehyde market, which has weak support for the POM cost side.

Last week, the overall operating rate of domestic POM enterprises increased. The industry equipment load is about 90%. Although the load continues to be high, the initial market supply has been depleted, and most enterprises have low inventory. At present, there is no pressure on the inventory position of enterprises, and the supply side still has sufficient support for POM spot goods.

Last week, 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 recent trend of the POM market has been stagnant. The operating rate of domestic polymerization plants has increased, and there is abundant supply of goods on site, but the inventory position of enterprises is still not high. Manufacturers support the market and stabilize the confidence of traders, but some merchants face increased shipping pressure. 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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