Price trend
| PVA |
In early August, the domestic POM market continued to show a positive trend, with spot prices continuing to rise. According to the Commodity Market Analysis System of Business Society, as of August 7th, the mixed price of domestic POM was 13200 yuan/ton, a decrease of+6.24% compared to the price level at the beginning of July.
Cause analysis
In terms of raw materials:
According to the analysis system chart of the commodity market of the Business Society, the recent market for formaldehyde has mainly fluctuated slightly, with an increase last week. The price of raw material methanol has shown an upward trend, but downstream sheet metal factories have poor demand, and market trading sentiment is average. Formaldehyde manufacturers are shipping normally, and the market is slightly rising with costs.
On the supply side:
The operating rate of domestic POM enterprises remained high in early August, but due to factors such as unplanned maintenance, the industry load decreased by nearly 8% to 86% last week. Although the high load situation continues, the initial inventory is low, and most enterprises have no inventory pressure, and even have negative inventory oversold situations. In addition, some other enterprises have maintenance plans in the later stage, and the current POM supply is still tight.
In terms of demand:
At present, the operating level of downstream POM enterprises in China is not high, but due to the stimulation of tight supply, there is a speculative atmosphere in the market. The enthusiasm for stocking is acceptable, and the transaction position of the order is high. Overall, the demand side’s support for POM spot prices is moderate.
Future Market Forecast
In early August, the POM market continued to rise rapidly. The operating rate of domestic polymerization plants has decreased, and the shortage of goods on site has worsened. There is currently no industry inventory pressure, and suppliers have strong support for spot goods. On the demand side, it is expected that due to the impact of high temperatures, power restrictions, and tropical cyclones in the later stage, the operating rate of terminal enterprises may decline. However, the release of consumption in the short term may be boosted by recent POM enterprise maintenance plans. Traders’ confidence remains strong, and the sentiment of speculation on the market remains strong. It is expected that the POM market will continue to strengthen in a narrow range in the future.
| http://www.pva-china.net |