Price trend
Last week, the domestic POM market was negative, with a significant drop in spot prices. According to the Commodity Market Analysis System of SunSirs, as of May 22, the average factory price of domestic POM was 12,950.00 RMB/ton, a 2.63% decrease from the price level at the beginning of the month.
Analysis review
In terms of raw materials:
Recently, the price of formaldehyde market in Shandong fluctuated and dropped. It can be seen from the above figure that the recent market of formaldehyde mainly fluctuated slightly, and the market fell last week. The price of raw material methanol fluctuated slightly, with average support for formaldehyde. The operating rate of downstream sheet metal factories was average, the demand support on site was average, the market trading sentiment was poor, and the formaldehyde market declined.
On the supply side:
The high operating rate of domestic POM enterprises had decreased. In the early stage, there were individual enterprises undergoing maintenance, and the industry load decreased to about 79%. The situation of high load had eased narrowly, but most enterprises' inventory had not decreased but increased, and processing profits had gradually decreased.
In terms of demand:
POM terminal enterprises had weak stocking enthusiasm, low operating rates and poor consumption release, which had limited impact on the promotion of spot prices. Traders lacked confidence and were forced to lower prices selling to complete tasks. Buyers tended to buy up rather than down, with a strong wait-and-see mentality. The actual order was light and biased towards one order with one negotiation.
Market outlook
Last week, the POM market fell again. The operating rate of domestic polymerization plants was still acceptable, but there will be multiple companies resuming work in the later stage, with expectations of rising supply. In addition, the industry's inventory pressure continued to increase, and suppliers were unable to support spot goods. The demand side enterprises replenish on demand was less, and some downstream operating rates were low, and actual transactions were few. Based on various bearish and bearish factors, it is predicted that the POM market may continue to decline in the short term.
