SunSirs: Downstream Load Decreases, China POM Market is Weak and Stagnant

Recently, the domestic POM market has remained stable with minor fluctuations, and spot prices have mostly remained stable. According to the Commodity Market Analysis System of SunSirs, as of January 8th, the mixed price of domestic POM is 13,050 RMB/ton, which is the same as the price level at the beginning of the month.

From the analysis of the commodity market in SunSirs, it can be seen that the formaldehyde market in Shandong Province has recently experienced a decline in prices, while the raw material methanol price has fluctuated and fluctuated, with average cost support. Downstream panel factories are taking early leave, resulting in weak procurement and a decline in formaldehyde prices.

Recently, the overall operating rate of domestic POM enterprises has decreased. The industry equipment load is about 80%. Although still at a high level, compared to before the holiday, the downward adjustment is significant. At the same time, most enterprises have low inventory, and the supply side still has sufficient support for POM spot goods.

Recently, downstream POM enterprises in China have been operating at a poor level, with companies mainly digesting inventory. On exchange trading was weak, and POM consumption weakened to some extent. 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 decreased, the inventory position of enterprises is low, and the on-site supply of goods is tight. Manufacturers have stabilized market confidence through strong market operations, but some merchants are under high shipping pressure. On the demand side, terminal enterprises are operating at a low level, and may continue to have holidays before holidays, leading to a decrease in load. Purchasing operations are cautious, and they are resistant to high priced goods, resulting in weak on-site trading. It is expected that the POM market may operate weakly in the near future.

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