SunSirs: Weak Demand, China POM Market was Weak and Stable

According to the data of SunSirs, the POM market declined by a narrow margin in the first half of October, and the spot prices of various brands were mainly stable. As of October 14, the ex factory price reference offer of POM injection molding sample enterprises of the business community was about 13,600 RMB/ ton, up or down by -0.49% 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 has been adjusted and operated after the recent rise. The methanol market continued to retreat after a sharp rise, and the cost support fluctuated. The demand of the downstream panel plant is general, and the purchase is just needed. The transaction in the formaldehyde market is fair, and the manufacturer normally ships. The formaldehyde market is weak due to the cost.

The upstream formaldehyde market was consolidated and operated, and the POM cost side was generally supported. In terms of industry load, the overall load of domestic POM industry enterprises has remained at a high level recently. Previously, individual enterprises had short maintenance, and the supply of goods was abundant. There is strong competition on the market. After the festival, the midstream will prefer to reduce the price for shipment, but the market mentality has recovered after hearing that the petrochemical plant has raised the factory price. The operating rate of terminal enterprises is generally restricted by profit and other factors, and the location is general. On the purchasing side, the wait-and-see mood is heavy, buying up rather than buying down, and the overall demand is weak. In addition, in the short term, the industry has certain inventory needs to be consumed, and downstream demand is expected to weaken. On site delivery is mainly based on small orders. It is difficult to ship high priced goods. The merchants only talk about a small amount of goods and hold more goods to wait for the news of inflation.

SunSirs analysts believe that: the domestic POM market declined by a narrow margin in the first half of October, the upstream formaldehyde market was consolidated, and the POM cost support was average. The load of POM industry is high, and there is pressure on the supply side. The demand follow-up of downstream enterprises has not improved, and there is a weakening expectation. The purchase is mainly scattered small orders. However, the upcoming factory price adjustment will boost the supply side support, and it is expected that the POM price will be warmer in China in the short term.

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