Price trend

According to the data monitoring of SunSirs, the average price of formaldehyde in Shandong on May 1 was 873.33 RMB/ton, the average price of formaldehyde in Shandong on May 27 was 880.00 RMB/ton, an increase of 0.76%, and the lowest price was the average price on May 6 of 863.33 RMB/ton. The current price fell by 25.63% year-on-year.

Analysis review   

Product: In May, the domestic formaldehyde market price fluctuated within a narrow range. As of May 27, the mainstream factory offer price in Hebei was around 740 RMB/ton, the Shandong factory offer was 815 RMB/ton, and the Jiangsu factory offer was 1,075 RMB/ton. Shandong Linyi Yinhe ’s annual output of 120,000 tons of formaldehyde has been restarted, with a formaldehyde content of 36.7-37%. In May, the average price of formaldehyde in Shandong lingered in the range of 850-880 RMB/ton. The start-up of formaldehyde companies was basically stable, the market supply is relatively sufficient, the trading atmosphere on the floor is general, the formaldehyde manufacturers are actively shipping, and the market fluctuates within a narrow range.

Industry chain: Upstream methanol situation: Some upstream enterprises in the northwest such as Shaanxi and Mongolia lowered the selling price to 1,300-1,330 RMB/ton. Some sales were suspended. The two sessions were held, freight rates remained high, traders exercised caution, and methanol prices fell. Throughout May, the methanol market fell weakly and could not support the cost of formaldehyde. The downstream terminal demand was limited. Formaldehyde companies actively took delivery. The formaldehyde companies ’quotations were affected by the poor raw material market and the market fluctuated within a narrow range.

Market outlook

Recently, the price of upstream methanol fluctuated and consolidated, and the cost support was average, and the trading atmosphere was fair. Therefore, the formaldehyde analysts of SunSirs predict that the domestic formaldehyde price may be weak and stable in the near future.

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