Investment prospects for polyoxymethylene

In the coming period, there will be a significant increase in new polyoxymethylene production capacity in the domestic market, so careful consideration is needed

It’s a good project; although several companies in the country are currently working on it, the market prospects are excellent. If investing is planned, the technical approach should be considered first ； Secondly, investment needs to be considered. With the current development of polyoxymethylene, a project involving 40,000 tons of this material would require an investment of over 800 million yuan; if moreover, high consumption levels are involved, then such an investment holds little merit. If investment decreases and the technology is good, go ahead with it.

Polyoxymethylene is a product characterized by high costs, advanced technology, and high profits. The relevant technologies are held by foreigners, who are not likely to sell them to domestic manufacturers. The Fuyi technology introduced into our country can only be considered second-hand; it remains relatively backward compared to foreign technologies. For investment purposes, an amount of around 200–300 million per wt is required; the current market average price is 10,000 per t for domestically produced products. China has long relied on imports for polyoxymethylene; only in recent years have a few domestic companies with substantial production capacity emerged, yet these still cannot meet the domestic demand. As a result, many large coal chemical companies have also begun to enter this sector (as they have ample raw materials available). The market competition is fierce these days; taking Shanghai Blue Star as an example, selling POM basically doesn’t generate any profit.

When deciding on projects, technology, investment, and market are important factors to consider. Lack of advanced technology leads to high energy consumption ； High investment leads to high depreciation costs ； If the market is poor, things will be even worse, so careful consideration is needed when deciding on a project. Regarding the current polyoxymethylene project, the technology is controlled by foreign countries and the investment required is substantial, so caution is needed.

Inner Mongolia seems to have 60,000 tons

The domestic market for low-end products is already saturated, and pressure from foreign manufacturers along with domestic competition have driven the profits on such products to extremely low levels. Due to foreign technological blockades, it is difficult to introduce advanced technologies; domestic research and development cannot keep up, leaving the country under foreign control for a very long time