Price trend

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong increased in April. At the beginning of the month, the price of formaldehyde in Shandong was 1,206.67 RMB/ton, and at the end of the month, it was 1,212.15 RMB/ton, an increase of 0.48%. The lowest point on April 10th was 1,197.50 RMB/ton, and the price had increased by 2.18% year-on-year.

Analysis review

In April, the price of formaldehyde in the Shandong region increased. From the above chart, it can be seen that the formaldehyde market had fluctuated less in the past three months, and this month the market had bottomed out and rebounded. As of April 25th, the mainstream market price in Shandong region was 1,180-1,300 RMB/ton. In April, the raw material methanol market fluctuated upwards, and the price of formaldehyde basically followed the changes in methanol. However, downstream purchases remained in demand, and the receiving sentiment was poor. Formaldehyde was weak in following the rise, and the market slightly rose.

Upstream methanol situation: In April, the domestic methanol market rose, with a decrease in domestic methanol supply but little change in demand. In addition, some downstream companies began pre holiday stocking before the May Day holiday, and production enterprises continued to reduce inventory. The domestic methanol market continued to rise mainly. Equipment maintenance for CNOOC Chemical, Jiangsu Sopu, Inner Mongolia Rongxin, Datang Duolun, and Shanghai Huayi; Production reduction of Zhong'an United and Jiangsu Sopu equipment; Shandong Rongxin, Jiangsu Sopu, Guizhou Tianfu, and Anyang have successfully resumed installation. The loss was greater than the recovery, resulting in a decrease in capacity utilization. The supply side of methanol had favorable factors.

Market outlook

Recently, the price of raw material methanol had fallen significantly, with poor cost support. Some formaldehyde production enterprises had lowered their equipment load ahead of the off-season. Therefore, formaldehyde analysts from SunSirs predict that formaldehyde prices in Shandong will mainly experience a slight decline in the near future.

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