The PM/PMA Market Decreased Slightly (Sept 1-7, 2017)

1. PM/PMA Market

The Chinese PM/PMA market was weak this week. Though most PM/PMA producers operated on a low workload and supply was modest, the mainstream negotiation in several areas still declined. Firstly, the PO prices declined dramatically, which cannot support the PM/PMA market. Secondly, the downstream demand was low. The users showed weak interest in inquiry. The offers from factories were stable temporarily. The orders in PM/PMA market were in a downtrend.

Up to September 7, the reference prices of PM in East China were in the range of RMB 12,000-13,400/mt by cash, while the PMA offers were in the range of RMB 11,000-12,400/mt by cash. The reference price of PM produced by Dow was RMB 12,400/mt by cash. The supply of PMA produced by Dow was tight, so there was no clear offers. The reference prices of PM in Shandong were in the range of RMB 11,700-13,400/mt by cash, and the PMA prices were in the range of RMB 10,700-12,400/mt by cash. The PM reference price in South China was RMB 12,500/mt by cash and the PMA reference price was RMB 11,500/mt by cash.

2. Forecast

The PO offers will decrease greatly, which will bring pressure on the PM/PMA market. Moreover, the downstream demand will be hard to increase. The factories will still have sales pressure. The PM/PMA prices from factories will decrease. It is suggested that the players should pay more attention on the raw material market and the demand for PM/PMA.