SunSirs: China POM Market is Weak

According to SunSirs, the POM market was weak this week, and the spot prices of various brands were frozen. As of September 15, the ex factory price reference offer of POM injection molding sample enterprises of the business community was about 16,033.33 RMB/ ton, up or down by -0.41% compared with the average price at the beginning of the month.

Industrial chain: In terms of upstream formaldehyde, the methanol market continued to rise this week. Driven by the rising cost, the formaldehyde manufacturer intended to increase its quotation in order to make profits, but the commencement of the downstream plate factory did not improve. The demand for formaldehyde on the site was limited, and the purchase was mainly just needed. The market transaction was general. Zibo Deju Yicheng plant was parked, and the formaldehyde inventory was OK. The market rose slightly.

Upstream formaldehyde market rose, and POM cost side support was strengthened. In terms of industry load, the overall load of domestic POM industry enterprises is basically full in the near future. In terms of supply, there is abundant supply, strong competition on the market, and manufacturers and midstream enterprises are willing to reduce prices to ship. The operating rate of terminal enterprises is generally restricted by profits or orders, and the position is not high. In addition, the overall demand is weak due to the reduced purchase after the festival this week. At present, the main support point of spot price is still the cost. In the short term, there is no guidance of demand scaling up in the downstream, and the load has not kept up with the end of the power restriction policy. The on-site purchasing operation was cautious, mainly taking goods from small orders. The industry was in a heavy wait-and-see mood because of its resistance to high price goods. It was reported that the polymerization plant planned to reduce the factory price. At present, the pattern of contradiction between supply and demand continues, and the negotiation of merchants has declined.

SunSirs analysts believe that China domestic POM market is weak this week, the upstream formaldehyde market continues to rise, and the POM cost support is fair. The load of POM industry is high, and the supply side support is poor. The demand follow-up of downstream enterprises has not improved, and the purchase is mainly scattered. Under the pattern of contradiction between supply and demand, it is expected that China POM prices will be weak in the short term.

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