SunSirs: Poor Demand, China POM Price is Sorting

Price trend

According to the data of SunSirs, the market of POM was generally horizontal last week, and the spot prices of various brands were mainly stable. As of August 12, the ex factory price reference offer of POM injection molding grade sample enterprises of business community was about 18,566.67 yuan / ton, up or down +0.91% compared with the average price at the beginning of the month.

Industrial chain: in terms of upstream formaldehyde, the market price of formaldehyde in Shandong Province was weak and consolidated recently last week. The upstream methanol market fluctuated little, the cost support was general, and the downstream operating rate was not greatly improved. The demand for procurement was maintained, the market transaction was flat, and the formaldehyde manufacturers stably shipped. The market was weak and consolidated.

The upstream formaldehyde market is weak and the POM cost side supports the horizontal plate. In terms of industrial load, the load of domestic POM enterprises is relatively high recently, and Yankuang has the expectation of load increase in the near future. There is abundant supply in the field and strong competition. The inventory of manufacturers and midstream is high, the operating rate of terminal enterprises is generally restricted by profits or orders, and the operating rate is narrowed. The consumption of POM in the field is slow, the off-season market continues, and the main support point of spot price is still the cost. Terminal enterprises are cautious in purchasing and mainly take small orders for goods, and the operators have a heavy wait-and-see mood. There is a certain contradiction between supply and demand in the market, and the offer of the merchants is stable but drops secretly. The offer mainly follows the enterprise or follows the market.

Market forecast

SunSirs analysts believe: last week, the domestic POM market was weak and stable, the upstream formaldehyde market was weak, and the POM cost was generally supported. The load of POM industry is high, and it is expected to continue to rise, and the support of supply side is poor. On the news side, the ex factory price of polymerization enterprises has recently increased, but the consumption of downstream enterprises is weak, and there is no large-scale replenishment in procurement. It is expected that in the short term, the price of POM in China will be blocked due to the contradiction between supply and demand.

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