SunSirs: Poor Demand Reduce the Price of POM in China in August

Price trend

According to the data of August, the POM market fell this month, and the spot prices of various brands fell significantly. As of August 29, the ex factory price reference offer of POM injection molding grade sample enterprises of business agency was about 16,100 RMB/ ton, up or down by -12.50% compared with the average price at the beginning of the month.

Market analysis

Industrial chain: in terms of upstream formaldehyde, in August, the market price of formaldehyde in Shandong Province surged, and the increase was concentrated at the end of the month. As of August 29, the mainstream market price in Shandong is 1,200-1,280 RMB/ ton. Recently, the domestic cost support has improved, and the downstream plate factory has maintained the just needed purchase. In order to make profits, the formaldehyde manufacturers have led to increase the price, and the formaldehyde market has risen.

The upstream formaldehyde market fluctuated and rose, and the POM cost side support was acceptable. In terms of industrial load, the load of domestic POM enterprises is relatively high recently. The load of Yankuang and Yuntianhua increased and decreased in the middle and late of this month. However, the overall operating rate of the industry is stable at about 80%, resulting in strong competition in the supply market. The inventory of manufacturers and midstream is high, and the off-season market continues. The operating rate of terminal enterprises is generally restricted by profits or orders, and the operating rate is narrowed. The lag of POM consumption continues. The petrochemical plants collectively reduce the ex factory price in the latter half of the month, resulting in the monthly decline concentrated in the latter half of the year. The main support point of the current spot price is still the cost. Domistic enterprises are cautious in purchasing operations, mainly taking small orders for goods. They are resistant to high-priced goods, and the operators have a heavy wait-and-see mood. There is a contradiction between supply and demand in the market, and the prices of merchants follow the decline of manufacturers.

Market forecast

SunSirs analysts believe that the domestic POM market fell this month, the upstream formaldehyde market fluctuated and rose, and the POM cost support was acceptable. The load of POM industry is high, and the support of supply side is poor. Downstream enterprises are slow to digest the source of goods, and there is no large-scale replenishment in procurement. It is expected that in the short term, the price of POM will continue to be adjusted weakly due to the continuous contradiction between supply and demand in China.

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