1. This week's market focus

The total inventory of POM manufacturers continues to rise;

2) The market sentiment becomes more bearish;

3) The downstream sector mostly holds a cautious and wait-and-see attitude.

2. Weekly market analysis

2024-2025 domestic POM Yuyao market price trend chart

This week, the domestic POM market has steadily risen. As of the close on March 20th, the mainstream negotiation price for domestically produced POM in the Yuyao market was between 10,500 and 14,500 yuan per ton, remaining stable compared to last week; in the Dongguan market, the cash price for domestically produced POM closed at 9,700 to 13,400 yuan per ton, also stabilizing from last week. This week, shipments across various regions continued to be weak, with POM petrochemical plants facing pressure in moving their stock. The overall performance of the fundamentals was poor, leading to a more pessimistic market sentiment. Traders mainly sold according to the current market conditions. Terminal factories had limited capacity for inventory digestion, and the overall purchasing mood of users was lackluster, with transactions focusing more on negotiations.

3. Market Impact Factors Analysis

This week, the POM market has steadily risen, with mainstream grades stabilizing in price compared to last week.

2) This week, the capacity utilization rate of China's POM industry is 96.99%, a decrease of 0.39% from last week;

3) The average gross profit of domestic POM this week is 2540 yuan/ton, an increase of 9 yuan/ton compared to last week.

4. Next week's market forecast

Supply forecast, the POM facilities of domestic manufacturers will operate stably next week, with no maintenance plans in the short term, hence the total supply of POM is expected to increase slightly. Demand forecast, the operating load of terminal factories will be insufficient next week, and user purchasing intentions are weak, it is anticipated that the overall demand for POM will be poor. Overall, market fluctuations in various regions next week will be limited. Given the continuous increase in the total inventory of POM petrochemical plants, there is little fundamental support, coupled with slow follow-up of demand orders, traders' enthusiasm for operations is not high, and the pressure to sell in the short term remains significant. Downstream users mostly hold a cautious and wait-and-see attitude, and actual transactions continue to be negotiated. Longzhong expects that the domestic POM market will be weakly adjusted next week.