|Azodicarbonamide (AC foaming Agent)|
The domestic POM market fell in July, and the spot prices of various brands fell significantly, according to the bulk list data of business agency. As of July 28, the ex factory price reference offer of POM injection molding sample enterprises of business club was about 18066.67 yuan / ton, up or down -11.44% compared with the average price level at the beginning of the month.
Industrial chain: in terms of upstream formaldehyde, the formaldehyde Market in Shandong fell in July. Recently, the cost support of formaldehyde is poor, the construction of downstream plate factories is weakened, and the demand is weak. The inventory in Linyi area is high, and it is not smooth to remove the inventory. In order to ship, formaldehyde manufacturers continue to reduce the price. It is expected that the price of formaldehyde in Shandong will mainly fall in the short term.
The upstream formaldehyde market fell, and POM cost side support weakened. In terms of industry load, the load of domestic POM enterprises was relatively high in July. In the middle of the year, Shenhua and Longyu had resumption devices, the on-site supply increased, and the competition intensified, causing enterprises to reduce the ex factory price, with the decline concentrated in the first half of the month. In addition, the inventory of manufacturers and midstream enterprises is high, the operating rate of terminal enterprises is generally restricted by profits or orders, and the operating rate is narrowed, and the consumption of POM in the field is slow, which is in the off-season mode. Terminal enterprises are cautious in purchasing, mainly taking small orders, and have a heavy wait-and-see mood. The main negative news on the floor was the pressure on spot prices caused by the increase in supply caused by the rise in industry load. The current high inventory level has not been effectively solved. The mentality of merchants is general, and the offer follows the enterprise’s downward adjustment.
Business analysts believe that the domestic POM market fell this month, the upstream formaldehyde market fell, and the cost support of POM weakened. POM industry load rises, and the support of the supply side is poor. The consumption of downstream enterprises is weak, and there is no large-scale replenishment in procurement. In the short term, domestic POM enterprises are expected to narrow the supply due to the maintenance of some devices, but the strength is limited. It is expected that in the short term, POM prices will continue to operate weakly due to the contradiction between supply and demand.