Price trend

In January, the domestic POM market maintained a strong operation, and the overall performance of prices was stable with small changes. According to the data monitoring of SunSirs, as of February 1, the average ex-factory price of domestic POM was 14,000 RMB/ton, and the price level was 0.48% higher than that at the beginning of January.

Analysis review

In terms of raw materials: the market price of formaldehyde in Shandong Province rose slightly in January. From the figure above, it can be seen that the price of formaldehyde had fallen mainly in the past three months, and the price had rebounded in February. By the end of January, the mainstream market price in Shandong was 1,170-1,300 RMB/ton. In January, around the Spring Festival, many formaldehyde manufacturers had holidays in advance, and the formaldehyde shipments were general. The formaldehyde market rose slightly with the upstream methanol.

On the supply side: In January, the operating rate of domestic POM enterprises continued to decline at a high level, and the average industrial load was about 87%. The inventory situation of the enterprise was OK, the inventory position was low, and the gross profit per ton of processing profit fell.

Demand: Although the POM industry load had dropped, the market supply was still abundant. The manufacturer's ex-works price was firm and increased at the end of the month. Under its guidance, the mentality of traders was supported to some extent, but the demand was general, and the on-site shipments were mostly negotiated based on actual orders. The enthusiasm of terminal enterprises in stock preparation was general, the release of demand for stock preparation before the holiday was slow, the resumption of work after the holiday was not complete, and the follow-up was slightly delayed.

Market outlook

In January, the POM market remained stagnant. The load of domestic polymerization plants was reduced from a high level, and the overall supply was abundant. The ex-factory price of domestic materials was strong, with a slight increase at the end of the month. The pressure on inventory was moderate, while demand was relatively weak. Downstream enterprises mainly digested the inventory, and most of the goods were scattered orders. After the holiday, the momentum in the market still needs to be improved. It is expected that the POM market will continue to run strongly in the short term due to the support of the supply side.

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