[Weekly POM Review] Enhanced Cost Support, Market Trades As Needed

1. Market Focus This Week

The Kaifeng Longyu POM plant resumes operations.

The ex-factory price of domestic materials is increased by 300 yuan/ton. ；

3) The market is in a strong wait-and-see mood. 。

2. Analysis of This Week's Market Situation

Data Source: Longzhong Information

Domestic POM Market Price Weekly Fluctuation Table

Unit: Yuan/Ton

Data Source: Longzhong Information

The POM market fluctuations in this period are limited. This week, fundamental support has strengthened as the Hebi Longyu POM plant temporarily shut down, some manufacturers have low inventory levels, and the ex-factory prices of domestic materials have collectively increased by 300 yuan/ton. The supply side has a certain boosting effect, and traders are more inclined to maintain prices. However, given that low-priced offers from terminal factories have not yet been absorbed, short-term purchasing intentions are relatively subdued. Some traders still find it difficult to relieve sales pressure, and operations mainly follow market trends, with relatively flexible negotiation space.

3. Market Impact Factor Analysis

1） This week, the POM market remains stable and observant, with the main grades unchanged from last week.

2） This week, the capacity utilization rate of China's POM industry is 78.08%, a decrease of 3.92% compared to last week's operation.

3） This week's domestic POM average gross profit is 119.11 yuan/ton, an increase of 11 yuan/ton compared to last week.

4. Market Forecast for Next Week

It is expected that the POM prices will rise slightly in the next period. Key points to focus on: 1. Supply side. The Hebi Longyu POM plant will be undergoing maintenance, while the Kaifeng Longyu POM plant will resume full production, resulting in a tightening of the overall supply. Due to the price increase of domestic materials, manufacturers' inventories are expected to decrease. 2. Demand side. In the next period, terminal factories will maintain low operating rates, and inventory digestion will be relatively slow. Given the ample supply of low-priced raw materials, users are adopting a cautious wait-and-see attitude, making it difficult to see any procurement activities in the future. 3. Cost side. The upstream raw material methanol prices are supportive, and the price increase of POM will promote a continuous recovery of profit margins. 4. Macroeconomic aspect. The slow movement of low-priced imported materials has put pressure on operators, and the favorable macroeconomic conditions will stimulate POM exports.