Price trend
| Thiourea |
Recently, the domestic POM market has been negative, and spot prices have fallen again. According to the Commodity Market Analysis System of the Business Society, as of June 25th, the average factory price of domestic POM was 11675.00 yuan/ton, a 9.85% decrease from the price level at the beginning of the month.
Cause analysis
In terms of raw materials:
According to the analysis system chart of the commodity market of the Business Society, the methanol market has been weak and declining recently. In the early stage, the price of raw material methanol was weak and consolidated, with poor cost support and significant pressure on formaldehyde inventory, resulting in a weak and declining market. Recently, the methanol market has rebounded, and the probability of formaldehyde following the trend has increased. However, the current support for POM is not strong.
On the supply side:
Domestic POM companies have recently declined, with some maintenance companies resuming work in the early stages. Currently, the industry is facing a close to full capacity deficit. The high load situation continues, and the inventory pressure of most enterprises gradually accumulates, leading to a gradual decrease in processing profits.
In terms of demand:
This week, POM terminal enterprises showed weak stocking enthusiasm, with no improvement in operating rates and negative consumption release, which has limited impact on spot prices. Traders lack confidence. It is expected that as the temperature increases, there will still be expectations of a decrease in downstream load. Buyers will buy up instead of falling, with a wait-and-see mentality and flexible real order transactions.
Future Market Forecast
The POM market fell this week. The operating rate of domestic polymerization plants remains high, and the pattern of abundant supply remains unchanged. Industry inventory pressure is accumulating, and suppliers are unable to support spot goods. On the demand side, downstream enterprises are operating at a low level and have a relatively low demand for replenishment, resulting in low actual transactions. How much profit is currently available on the market? It is expected that the POM market may continue to be weak in the short term.
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