Tight market supply, POM price rise continued in July

Price trend

Gamma Polyglutamic Acid

According to the bulk list data of business society, the domestic POM market rose in July, and the spot prices of various brands rose. As of July 31, the average price offered by POM injection molding sample enterprises of business society was about 17166.67 yuan / ton, an increase of 5.75% compared with the average price at the beginning of the month.

Cause analysis

In terms of POM upstream formaldehyde, the rising atmosphere at the beginning of July continued to drive the demand of plate enterprises at the end of June, and the market atmosphere warmed up. With the sudden drop in the operation of plate factories in Shandong affected by the rainy weather, the demand continued to decline and the procurement capacity shrank rapidly. The formaldehyde Market in Shandong began to decline at a high level on the 6th. By mid month, the market reached equilibrium and the spot price began to return to stability. The mainstream market price in Shandong is 1300-1400 yuan / ton. At the end of the month, the upstream raw material methanol market was sorted out at a high level, and it is expected that the recent formaldehyde price in Shandong may be dominated by shock and decline.

The high level of upstream prices fell, and the cost side support of POM weakened. Since July, the domestic POM market has been mainly supported by the tightening of the supply side, and the supply of domestic enterprises is in short supply. At present, there are still enterprises or maintenance or forced to reduce the burden due to force majeure. At present, the delivery period of on-site orders is relatively prolonged, the on-site supply shortage strengthens the mentality of manufacturers, and the speculation atmosphere is still strong. In addition, manufacturers and merchants control shipments. At present, there is a strong willingness to report high on the site. Tianye Chemical M90 quoted a reference price of about 16100 yuan / ton for negotiation. The ex factory reference price of Yuntianhua M90 is about 17900 yuan / ton, which is subject to firm negotiation. Shenhuaning coal mc90 is quoted at a reference price of about 17500 yuan / ton, with cash withdrawal. I heard that the on-site inquiry was significantly higher than the official price and increased frequently. After being forced to follow up a number of supply sources, downstream enterprises have significantly reduced their replenishment operations recently due to the increasing cost pressure.


Future forecast

Business analysts believe that the domestic POM market trend is strong in July, the upstream formaldehyde price is generally high, and the POM cost support is acceptable. The supply in the venue is tight and the improvement of the pattern is limited, and the supply side continues to benefit the market. On the demand side, the terminal enterprises showed weakness in passive follow-up at the end of the month, with a small amount of replenishment to maintain production. Merchants have a positive attitude. At present, there is a deep shortage of goods in the venue. It is expected that the POM market may remain high in the short term.


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