SunSirs: Market Demand Frustrated, China POM Market is Weak and Stable
June 21 2023 10:49:12 SunSirs (Selena)
Recently, the domestic POM market has been weak and stable, with spot prices often showing sideways trends. According to the Commodity Market Analysis System of SunSirs, as of June 16th, the average factory price of domestic POM was 12,175.00 RMB/ton, a decrease of 5.98% from the price level at the beginning of the month.
According to the analysis system chart of the commodity market of SunSirs, the methanol market has been weak and declining recently. Due to poor cost support and poor demand from downstream panel factories due to rain and high temperature weather, it is expected that the price of formaldehyde in Shandong will mainly decline in the short term.
Domestic POM companies have recently seen a high level of sideways trading, and due to the resumption of work by some maintenance companies in the early stages, the current industry is close to full capacity. The high load situation continues, and the inventory pressure of most enterprises gradually accumulates, leading to a gradual decrease in processing profits.
Last week, POM terminal enterprises have weak stocking enthusiasm, low operating rates, poor consumption release, and limited impact on spot prices. Traders lack confidence. It is expected that as the temperature increases, there will still be expectations of a decrease in downstream load. Buyers will buy up instead of falling, with a wait-and-see mentality and flexible real order transactions.
The POM market is weak last week. The operating rate of domestic polymerization plants is almost full, with abundant supply. In addition, the inventory pressure in the industry continues to accumulate, and suppliers are unable to support spot goods. The demand side enterprises have a relatively low demand for replenishment, and some downstream operating rates are low, resulting in a small amount of actual transactions. How much profit is currently available on the market? It is expected that China POM market may continue to be weak in the short term.
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