SunSirs: Trading Situation is Average, China POM Market is Stagnant

Recently, the domestic POM market has been in a stalemate, with spot prices mostly flat. According to the commodity market analysis system of the Business Information Service, as of March 22, the domestic POM mixed price was 13,675 RMB/ton, a rise of +1.30% compared to the beginning of the month.

Recently, the market price of formaldehyde in Shandong has fluctuated, with small fluctuations in the recent market. The price of raw material methanol has risen, with good cost support.  The downstream board factory demand consumption is too slow, and the formaldehyde manufacturers have a large shipment pressure. The market price rise is limited, and the support for POM is generally moderate.

On the supply side, the operating rate of domestic POM enterprises has generally been high in the near future, with an overall load rate of around 94%. However, most enterprises have low inventory levels and have not experienced inventory accumulation. Overall, the increase in supply pressure is limited, and the supply side can provide adequate support for POM spot prices.

Demand: In the near future, domestic downstream enterprises of POM have a general stocking situation, mostly for immediate needs. Coupled with the high price of POM, buyers have certain resistance. Comprehensively, the demand side is lagging behind, and traders have some hidden operation of lowering prices to move goods, which has a negative impact on the spot price of POM.

Last week, the POM market was in a stalemate. The operating rate of domestic polymerization plants was slightly higher at a high level, and the inventory position of enterprises was not high.  The supply side pressure was not urgent, and the pricing operation of manufacturers tended to be price-insisting. The procurement of downstream enterprises was limited by the high load and POM price, and the stocking follow-up lagged behind. It is expected that the future POM market will be dragged by the demand side and the price center will be loosened.

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