Price trend

 

PVA 1788 (PVA BP17)

This week, the domestic POM market has remained stable with minor fluctuations, and spot prices have mostly remained stable. According to the Commodity Market Analysis System of Shengyishe, as of January 26th, the mixed price of domestic POM was 13025 yuan/ton, a decrease of -0.19% 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 in Shengyishe, the price of formaldehyde in the Shandong region rose horizontally this week, with the increase concentrated in the first half of the week. Boosted by the rise in raw material methanol prices in the early stage, formaldehyde followed the upstream trend. But as the Spring Festival approaches, downstream sheet metal factories are taking more vacations, making it difficult to release demand. In the second half of the week, prices have flattened, and overall support for POM costs is strong.

 

In terms of supply:

 

The overall operating rate of domestic POM enterprises continued to rebound this week. The industry equipment load is approximately 88%. There are relatively few maintenance arrangements in the future, and it is expected that POM production will remain at a high level. Most enterprises have relatively low inventory levels and a strong willingness to support the market. The supply side still has sufficient support for POM spot goods.

 

POLYVINYL ALCOHOL

In terms of demand:

 

This week, downstream POM enterprises in China have had a poor level of production, with companies mainly digesting inventory. On exchange trading was weak, and POM consumption continued to be weak. The operator needs to follow up with a small amount of urgent needs, operates cautiously, and resists high priced sources of goods. The pre holiday stocking operations have been gradually completed, and overall, the demand side’s support for POM spot prices is weak.

 

Future Market Forecast

 

The POM market has been stagnant this week. The operating rate of domestic polymerization plants has increased narrowly, and the inventory position of enterprises is low, resulting in moderate pressure on the supply side. Manufacturers have stabilized market confidence through market support operations, but the enthusiasm of downstream buyers is poor, and some merchants are under high shipping pressure, resulting in a hidden decrease in orders. Terminal enterprises are operating at a low level, and the number of enterprises taking holidays before holidays continues to increase. The overall load is decreasing, and purchasing operations are cautious. The supply and demand game on the market is expected to continue high consolidation in the POM market in the near future.

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