Price trend

Recently, the domestic POM market has been shaken and sorted out, with overall price changes being narrow. According to data monitoring by Business News Agency, as of March 17, the average ex-factory price of domestic POM was 14300 yuan/ton, with a price increase or decrease of -0.23% compared to the beginning of the month.

Cause analysis

In terms of raw materials: Recently, the market price of formaldehyde in Shandong Province has fluctuated and consolidated. As can be seen from the figure below, the recent market of formaldehyde has mainly fluctuated slightly, and this week’s market has not fluctuated much. The price of raw material methanol has stabilized, with general cost support, weak market trading sentiment, weak demand from downstream plate factories, stable shipments from formaldehyde manufacturers, and volatile market consolidation.

On the supply side: Recently, the operating rate of domestic POM enterprises has been reduced in a narrow range from a high level, and the industry load has decreased by about 3%. Currently, it is about 91%. The inventory situation of the enterprise is stable, the inventory position is not high, and the processing profit has steadily increased.

Demand: In terms of demand, the enthusiasm of terminal enterprises to stock goods has weakened, and the demand release situation is general, with limited impact on the promotion of spot prices. At present, the mentality of traders on the market has turned weaker, with a bias towards single talk and the existence of allowing them to take orders.

Aftermarket Forecast

This week, the POM market was weak and volatile. The operating rate of domestic polymerization plants is high, and the inventory pressure is acceptable. At the same time, the price of imported materials is low, and domestic materials continue to be under pressure. Demand side enterprises just need to replenish less, some downstream operating rates are low, and actual transactions are weak. It is expected that the market may decline in the short term.