SunSirs: Poor Market Dynamics, China POM Market Continues to Fall

https://www.chemnet.com   Jun 27,2023

　　Recently, the domestic POM market has been negative, and spot prices have fallen again. According to the Commodity Market Analysis System of SunSirs, as of June 25th, the average factory price of domestic POM was 11,675.00 RMB/ton, a 9.85% decrease from the price level at the beginning of the month.

　　According to the analysis system chart of the commodity market of SunSirs, the methanol market has been weak and declining recently. In the early stage, the price of raw material methanol was weak and consolidated, with poor cost support and significant pressure on formaldehyde inventory, resulting in a weak and declining market. Recently, the methanol market has rebounded, and the probability of formaldehyde following the trend has increased. However, the current support for POM is not strong.

　　In terms of supply: Domestic POM companies have recently declined, and some maintenance companies in the early stages have resumed work. Currently, the industry is facing a negative load of nearly full capacity. The high load situation continues, and the inventory pressure of most enterprises gradually accumulates, leading to a gradual decrease in processing profits.

　　In terms of demand: POM terminal enterprises have weak stocking enthusiasm last week, and the operating rate of terminal enterprises has not improved. The consumption release situation is negative, and the driving effect on spot prices is limited. Traders lack confidence. It is expected that as the temperature increases, there will still be expectations of a decrease in downstream load. Buyers will buy up instead of falling, with a wait-and-see mentality and flexible real order transactions.

　　The POM market fell last week. The operating rate of domestic polymerization plants remains high, and the pattern of abundant supply remains unchanged. Industry inventory pressure is accumulating, and suppliers are unable to support spot goods. On the demand side, downstream enterprises are operating at a low level and have a relatively low demand for replenishment, resulting in low actual transactions. How much profit is currently available on the market? It is expected that the POM market may continue to be weak in the short term.

 Print  |    add to Favorites  |    Close