[POM Weekly Review] Spot Market Faces Pressure, Traders Flexibly Ship Goods

1. Market Focus This Week

1) The low inventory at the petrochemical plant provides support.

2) Market sales are slow. ；

3) The downstream market is dominated by a wait-and-see attitude. 。

2. Analysis of This Week's Market Trends

Domestic POM Market Weekly Price Change Table

The POM market experienced a narrow decline this period. This week, POM market trends varied across different regions. Petrochemical plant inventories are at low levels, but currently, it is the traditional off-season for demand, resulting in relatively slow spot circulation. The market faces increased pressure to sell. The mainstream offers for domestic materials remained stable, while high-level transactions for imported materials proved difficult. Some offers dropped by 200-500 yuan/ton. With weak demand constraints, there was an increase in traders quoting high but selling low. Downstream users primarily took a wait-and-see approach, making the buying and selling atmosphere difficult to describe as optimistic.

3. Analysis of Market Influencing Factors

1）This week, the POM market showed a weak consolidation, with mainstream grades remaining stable compared to last week.

2）This week, the capacity utilization rate of China's POM industry was 91.85%, a decrease of 1.30% in operation compared to last week.

3）The average gross profit of domestic POM this week is 201 yuan/ton, down 35 yuan/ton from last week.

4. Market Forecast for Next Week

The POM price is expected to decline within a narrow range in the next period. Key points to watch: 1. Supply side. Petrochemical plants have no inventory pressure in the next period, but due to the slowdown in sales across regions, manufacturers will face increased pressure to ship products. 2. Demand side. Demand is expected to remain weak in the next period. Due to sluggish order performance, downstream buyers show weak willingness to take over goods, making it difficult for large short-term orders to follow up. 3. Cost side. Upstream raw material methanol prices remain high, strengthening cost support. 4. Macro environment. The price of imported materials stays high, making actual transactions difficult. Traders may continue to increase discounting, and the short-term trend is likely to remain downward.