SunSirs: Device Maintenances, China POM Market Stabilizes

Recently, the domestic POM market has stopped falling and stabilized, with spot prices hitting bottom and rebounding narrowly. According to the Commodity Market Analysis System of SunSirs, as of April 24th, the mixed price of domestic POM was 12,650 RMB/ton, a decrease of -3.62% from the price level at the beginning of the month.

The domestic methanol market has recently seen a narrow rise, and the current fundamental contradiction is not significant. The construction of enterprise facilities is at a high level, and downstream enterprises have a certain resistance to high prices. But the social inventory position is relatively low, and the market atmosphere in the early stage is still good. At present, the supply and demand are relatively balanced, and it is expected that the short-term domestic methanol market price consolidation will be the main focus.

In terms of supply: Recently, the operating rate of domestic POM enterprises has declined. Due to the maintenance arrangements of Tangshan Zhonghao and Yankuang Luhua in the early stage, the overall load has decreased by about 9%, with a rate of 71%. The synchronous reduction in production has partially digested the inventory position of the enterprise. Some manufacturers have implemented price adjustments, coupled with rising external prices, overall supply pressure has eased, and supply side support for POM spot has increased.

In terms of demand: Recently, the stocking situation of domestic POM downstream enterprises has been average, and most of them just need to pick up goods to maintain production. The consumption level continues to maintain the previous weak trend, and the main logic of factories is still to digest inventory. As the end of the month approaches, traders are engaging in profit giving and order taking operations, making it difficult to maintain a smooth trading atmosphere on the exchange. Overall, the demand side has poor support for POM spot prices.

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