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SunSirs: There Was Support at the Cost Side, and POM Rose Slightly at the Beginning of the Month
June 10 2022 09:52:23SunSirs(John)

Price trend

According to the monitoring data of SunSirs, the domestic POM market in the first half of June was relatively strong, and the spot price of some models was increased to a certain extent. As of June 9th, the reference quotation of the ex-factory price of injection molding grade POM was around 21,400 RMB/ton, a change of +0.47% compared with the average price at the beginning of the month.

Analysis review

Industry chain: In terms of upstream formaldehyde, the formaldehyde market in Shandong rose this week. Although the downstream demand was low, only the just-needed purchases were maintained, and the market transaction was light. However, the raw material methanol market had risen, and formaldehyde had tentatively followed up. It is expected that the price of formaldehyde will mainly rise in shock.

The upstream formaldehyde market rose, and the cost-side support of POM was stable. In terms of industry load, some POM companies had maintenance at the end of May, and some companies have maintenance plans next week, and the supply in the market is acceptable.

The operating rate of terminal enterprises gradually entered the off-season mode. Generally, the operating rate gradually narrowed due to profit or order problems. The purchasing operation was cautious and mainly took small orders. The operation was inclined to buy on dips to maintain production. Before entering the off-season, there was still a risk of rising inventory in the market, the mentality of merchants was general, and the offer rose with the petrochemical plant, but the shipment situation was general.

Market outlook

The analyst of SunSirs believes that the domestic POM market has risen this week, the upstream formaldehyde market is strong, and the POM cost support is acceptable. The load of the POM industry fluctuates in a narrow range, and it is expected to rise next week. The consumption of downstream enterprises is weak, and there is no large-scale replenishment of purchases. It is expected that in the short term, the price of POM will be dominated by a stalemate.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com

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