The PM/PMA Market Decreased Slightly (Sept 15-21, 2017)

The Chinese PM/PMA market continued decreasing this week and the offers went downwards again. The PO market declined slightly, which decreased the production cost of PM/PMA. The PM/PMA operating rate was in a low level. The PM/PMA producers show weak sentiment in producing, so the inventory was low and the supply was modest in the PM/PMA market. However, the downstream demand was still weak because of the environment protection supervision. The downstream producers showed low interest in accepting new orders and they purchased PM/PMA on a need-to basis. As the EO prices decreased, part of EO factories were unwilling to sell goods. The Chinese PM/PMA market prices continued decreasing.

Up to September 21, the PM prices in East China were in the range of RMB 11,500-12,100/mt by cash, and the PMA prices were in the range of RMB 10,500-11,200/mt by cash. The supply of PM/PMA produced by Dow was tight, so there was no clear offers from Dow. The PM offers in Shandong were in the range of RMB 11,200-12,100/mt by cash and the PMA offers were in the range of RMB 10,200-11,200/mt by cash. The PM offer in South China was RMB 12,100/mt by cash and PMA negotiation price in South China was RMB 11,100/mt by cash.

The PO will be in a low level, which can not support the PM/PMA market. The PM/PMA operating rate will low. The producers will still show poor attitudes to produce goods. The supply of PM/PMA will still be modest. As the downstream users will purpose to stock PM/PMA when the National Day is coming, the trade will increase again in the PM/PMA market. It is predicted that the PM/PMA market will increase and the negotiation price will be range-bound. It is suggested that players should pay attentions on the production cost and operate flexibly.