[Weekly POM Report] Market Transactions Are Sluggish, Negotiations on Discount

1. Market Focus for This Week

Xinjiang Xinlianxin POM unit has resumed operation.

2) There is a prevalent behavior in the market of opening high and closing low. ；

The import market quotes continue to decline. 。

2. This week's market analysis

Domestic POM Market Weekly Price Fluctuation Table

This period, the POM market experienced limited fluctuations. This week, spot circulation was slow, and the total inventory of petrochemical plants continued to accumulate. There are no clear guiding messages from the fundamentals, leading to increased bearish sentiment among market participants. Weaker demand has suppressed the market, resulting in slow consumption of downstream inventory and a lack of purchasing enthusiasm among end users. The trading atmosphere in the market is subdued, with some merchants offering slight discounts to relieve inventory pressure, ranging from 50 to 100 yuan/ton, with actual transactions subject to negotiation based on volume.

3. Market Influence Factors Analysis

1） This week, the POM market has been stable with a slight decline, while the mainstream grades remain stable compared to last week.

2） This week, the capacity utilization rate of China's POM industry is 85.13%, an increase of 4.11% compared to last week's operation.

3） The average gross profit of domestic POM this week is 47.Yuan/ton, an increase of 28 yuan/ton compared to last week.

4. Market Forecast for Next Week

The POM price is expected to come under pressure and decline in the next period. Key points to focus on: 1. Supply side. The next period will enter the National Day holiday, and Xinjiang Xinlianxin's POM plant will resume full-load production. Given the relatively slow shipping situation of petrochemical plants, some manufacturers may implement volume-price policies to alleviate inventory pressure. 2. Demand side. The holiday will affect the next period, with some downstream users potentially stocking up before the holiday, showing high procurement enthusiasm. During the holiday, terminal factories will gradually shut down for vacation, and trading atmosphere will drop to a freezing point in various regions. 3. Cost side. Methanol prices are declining upstream, and the profit margin for POM is continuously improving, providing some short-term positive boosts. 4. Macro side. Due to the impact of reduced import offers, the pressure on domestic material shipments will increase, and market transaction resistance will intensify.