[POM Daily Review] Strong Demand in Transactions, Market Remains Firm

1. Today's Summary

①. The domestic supply of materials has tightened. 。

② Gradually absorb low-priced market offers.

2 Spot Overview

Table 1 Domestic POM Price Summary (Unit: Yuan/Ton)

Based on the Yuyao region, the current price of Yun Tianhua M90 is 10,800 yuan/ton, remaining stable compared to the previous period. Today's POM market showed varied performance. The East China market operated steadily, with low-priced offers gradually being absorbed and traders maintaining a strong stance on price support, resulting in relatively firm mainstream quotations. The South China market focused on inventory clearance, with operators adopting a relatively cautious approach, limiting price fluctuations. End users made purchases based on actual demand, and transactions continued through negotiations. Longzhong expects the domestic POM market to maintain a slightly strong and stable trend in the short term.

3 Production Update

This week, the domestic POM capacity utilization rate was 92.04%, an increase of 2.15% compared to last week. The 40,000 tons/year POM unit at Tianjin Bohua is currently shut down for maintenance, while POM units at other manufacturers are operating stably. This week, the loss from maintenance has decreased, resulting in a rise in operating rates. Methanol prices are rising, while POM prices are falling. The product's gross profit margin has significantly decreased, reducing the profit margin by 247 yuan per ton.

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

4. Price Forecast

At the beginning of the week, there is limited guidance from various regions, and petrochemical plants are under no inventory pressure. The fundamentals remain relatively firm, providing some support to market sentiment. Some market offers remain stable, but downstream factories have limited capacity to digest inventory, resulting in relatively flat transactions. According to Longzhong’s forecast, the domestic POM market is expected to remain strong in the short term.

5 Related Product Information

Methanol: Today, the methanol futures market experienced a fluctuating upward trend. The spot market sentiment was weak earlier, but with methanol companies bidding at a premium, the bearish sentiment has somewhat warmed up. Traders' transfer quotes remain relatively firm, and downstream purchasing volume has increased this week compared to last week. Currently, market freight rates are still low, and methanol downstream purchases in Shandong have declined compared to last week.

6 Data Calendar

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