[POM Daily Review] Fundamental Support Drives Market Higher Amid Fluctuations

1. Today's Summary

①. Domestic material manufacturers currently have no inventory pressure. 。

②. There are many price-supporting activities in the market.

2 Spot Overview

Table 1 Summary of Domestic POM Prices (Unit: RMB/ton)

Based on the Yuyao region, the current price of Yun Tianhua M90 is 11,000 yuan/ton, remaining stable compared to the previous period. Today, the POM market saw mixed price movements. The fundamentals provided strong support, with ex-factory prices for domestic materials rising. Mainstream offers remained relatively firm, and prices for some grades increased slightly by around 100 yuan/ton. Imported materials continued to decline, with some prices dropping by 200-300 yuan/ton. As of market close, the tax-inclusive price of domestic POM in the Yuyao market was 8,100-11,200 yuan/ton, while the cash price in the Dongguan market was 7,300-10,400 yuan/ton.

3 Production Dynamics

The domestic POM capacity utilization rate this week is 92.04%, an increase of 2.15% compared to last week's operating rate. The 40,000-ton/year POM unit at Tianjin Bohua is shut down for maintenance, while POM units from other manufacturers are operating steadily. This week, maintenance losses have decreased, resulting in an increase in operating rates. Methanol prices rise, POM prices decline. As a result, the product's gross profit margin declined significantly, reducing the profit margin by 247 yuan per ton.

Figure 3: Trend Chart of Domestic POM Capacity Utilization Rate in 2024-2025	Figure 4 Comparison of Domestic POM Profit and Price for 2024-2025 (Yuan/Ton)
Data source: Longzhong Information	Data source: Longzhong Information

4. Price Forecast

This week, inventories from various manufacturers were released in a concentrated manner, and ex-factory prices of some domestic materials were collectively raised. Market participants’ sentiment has been largely boosted, resulting in a relatively firm market trend. Some individual offers may even continue to rise. End users exhibit a “buy on the rise, not on the fall” mentality, with some engaging in demand-based replenishment. However, due to insufficient operating rates at downstream factories, follow-up procurement remains relatively limited. According to Longzhong’s forecast, the domestic POM market is expected to run on the strong side in the short term.

5 Relevant product information:

Methanol:The current methanol spot price index is 2186.05, an increase of 1.13. The spot price in Taicang is 2385, down by 10, while the price in North Inner Mongolia is 2065, up by 5. According to Longzhong's monitoring of prices in 20 major cities, prices in 9 cities have fallen to varying degrees, with decreases ranging from 5-25 yuan/ton. The methanol market in Northwest China continues to rise locally today, influenced by the scheduled maintenance of some olefin methanol plants, leading to an improved trading atmosphere. Some companies continue to auction and sell, pushing transaction prices higher. This has driven up trade rerouting prices simultaneously, although the main sales area in Lubei still employs price suppression despite following the trend. In the short term, supported by tightened supply, the market is likely to maintain a strong and volatile operation.

6 Data Calendar

Table 2 Overview of Domestic POM Data (Unit: 10,000 tons)