[POM Weekly Review] Domestic Material Prices Concentratedly Lowered, Market Focus Declines

1. Market Focus This Week

The ex-factory price of domestic materials has been reduced by 200-500 RMB/ton.

2) Increase in market low-price replenishment activities ；

3) Import offers continue to decline. 。

2. This Week's Market Analysis

Weekly Price Change Table of Domestic POM Market

Units: Yuan/ton

Data Source: Longzhong Information

The POM market was under pressure and declined this period. During the week, the decline in POM prices intensified across various regions. The Tianjin Bohua POM plant was shut down for maintenance. In the first half of the week, the ex-factory prices of domestic materials were collectively reduced by 200-500 yuan/ton, which dampened the sentiment of market participants. The bearish atmosphere in the market intensified, and the focus of domestic material quotations continued to decline, with mainstream grades dropping by 200-700 yuan/ton. In the latter half of the week, as POM prices fell to around the cost line, traders' willingness to restock at low prices increased, and the atmosphere for inquiries in the market became relatively active. Downstream users made small orders based on demand, and real transactions were negotiated according to quantity.

3. Market Impact Factor Analysis

1）This week, the POM market is under pressure and has declined, with mainstream grades falling by 500 yuan/ton compared to last week.

2）This week, the operating rate of China's POM industry was 92.04%, an increase of 2.15% compared to last week.

3）The average gross profit of domestic POM this week is 247 yuan/ton, down by 337 yuan/ton compared to last week.

4. Market Forecast for Next Week

The POM price is expected to rebound slightly in the next period. Key points to watch: 1. Supply side: The Tianjin Bohai Chemical POM unit will undergo a shutdown for maintenance next period. Due to the concentrated digestion of Petrochemical plant inventories, short-term support will be strengthened. 2. Demand side: During the traditional off-season demand period next time, end-user factories will maintain low operating rates. However, stimulated by market speculative buying, downstream users are likely to replenish stocks, with actual transactions following demand. 3. Cost side: Upstream raw material methanol prices have slightly rebounded, and profit margins will continue to shrink. 4. Macro aspect: It is reported that Korea Kolon has the intention to lower POM ex-factory prices, and import offers will gradually decline. Market price competition remains intense, with flexible negotiations on transactions.