SunSirs: Weak Cost Support and Formaldehyde Market Decline Slightly

Price trend

According to the data from SunSirs, the average price of formaldehyde in Shandong on the 10th was 1,033.33 RMB/ton, and the average price of formaldehyde in Shandong on the 11th was 1,086.67 RMB/ton, a decrease of 0.61%. The current price fell 17.68% year-on-year.

Analysis review   

Product: Recently, the domestic formaldehyde market price fell slightly. As of the 11th, the mainstream factory offer in Hebei was about 1,000 RMB/ton, the mainstream factory offer in Shandong was 1,010 RMB/ton, and the mainstream factory price in Jiangsu was 1,150 RMB/ton. Shandong Linyi Yinhe's annual output of 120,000 tons of formaldehyde unit has been restarted, with a formaldehyde content of 36.7-37%. Linyi Jinyuan Chemical has two formaldehyde production lines with an annual production capacity of 80,000 tons and formaldehyde content of 37%, which has been restarted. The overall start-up of formaldehyde manufacturers has increased, the supply has increased, the market for formaldehyde has been average, and prices have fallen slightly.

Industrial chain: Upstream methanol situation: The domestic methanol market trended downward in a narrow range, and some companies repeatedly adjusted prices, but the reduction was not significant. Due to the current low freight rates, the consumer market has little resistance to the market. Affected by the decline in futures prices, the port market fluctuated lower, and tight storage capacity is not good for the port. The operating rate in the downstream market is average, and demand is difficult to increase. Maintaining just needed procurement, the atmosphere in the formaldehyde market is deserted, the actual order transactions are general, and the formaldehyde market has fallen slightly.

Market outlook

Recently, the upstream methanol market has narrowed down, cost support is weak, and the downstream market as a whole is recovering slowly with limited demand. Therefore, the formaldehyde analyst of SunSirs predicts that domestic formaldehyde prices may be consolidating at a low level recently.

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