In December, the domestic POM market was in a stalemate, and the overall price performance was stable. According to the data monitoring of SunSirs, as of December 30, the average ex factory price of domestic POM was 13,933.33 RMB/ton, which was the same as that at the beginning of the month.
In terms of raw materials: the price of formaldehyde market in Shandong Province fell in December. It can be seen from the figure below that the formaldehyde market fell mainly in the fourth quarter of 2022, and continued to decline this month. At present, due to the influence of public security incidents, the transportation in Shandong is not smooth. The downstream plate factory maintains its rigid demand for procurement. The formaldehyde shipment is not good, and the market is declining.
In terms of supply: In December, the operating rate of domestic POM enterprises rose at a high level, and the industry load increased from 90% to about 98% in the month. At the end of the month, it was close to full load operation. However, the inventory of the enterprise is not bad, and there is no accumulated inventory. At the same time, the gross profit per ton of processing profit is about 2,700 RMB, and the position is rising. The imported materials are also abundant, but the price is lower.
Demand: the load of POM industry was high this month, and the market supply was abundant. The manufacturer's outgoing price runs stably. Under its guidance, the traders' mentality is supported to some extent. However, the demand this month is average, and the on-site shipment is mostly a real order negotiation. The enthusiasm of the terminal enterprises for goods preparation is general, the effect of goods preparation before the festival is not obvious, and the demand follow-up is slightly lagging.
In December, the POM market was in a stalemate. The load of domestic polymerization plants is high, and the overall supply is abundant. The factory price of domestic materials is deadlocked, the pressure on inventory is fair, and the demand is relatively weak. Downstream enterprises mainly digest inventory, and pick up goods mostly in small pieces. The momentum of the market is gradually decreasing. The industry has many holiday and delisting arrangements. It is expected that the POM market will turn into a weak operation due to weak demand in the short term.
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