SunSirs: Under the influence of the epidemic, the market for formaldehyde fell

1. Price trend

According to data from the SunSirs commodity list, the average price of formaldehyde in Shandong on the 18th was 1076.67 yuan/ton, and the average price of formaldehyde in Shandong on the 17th was 1026.67 yuan/ton, a decrease of 4.64%. The current price fell 21.43% year-on-year.

2. Market analysis

Products: The domestic formaldehyde market price has recently fallen. As of the 18th, the mainstream factory offer in Hebei is about 920 yuan / ton, the mainstream factory offer in Shandong is 920 yuan / ton, and the mainstream factory price in Jiangsu is 1100 yuan / 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 a formaldehyde content of 37%, which has been restarted. The overall start-up of formaldehyde manufacturers has been improved, the supply of goods is sufficient, the market trading atmosphere has been deserted, and prices have continued to fall.

Industrial chain: Upstream methanol situation: Due to the plunge in international crude oil futures, Zhengshang Institute ’s methanol main contract MA2005 fell to a limit, and the spot price of methanol in East China remained linked to it. The prices in East China and South China fell sharply. Most of the mainland methanol wait and see in the first half of the week. With the port's sharp decline, prices in the mainland also loosened. Shandong, North China, and Central China have all declined; companies in the main producing areas have limited offers and more contracts are enforced. The operating rate in the downstream market is average, demand is weak, and the atmosphere of market transactions is deserted. Formaldehyde companies have lowered their quotations for shipment, and the formaldehyde market has been declining.

3. Market Forecast

The recent epic collapse of international crude oil has plunged U.S. stocks. At a time when China ’s domestic public health incidents have just improved, the epidemic outside China has rapidly spread. Under the interweaving of various situations, the upstream methanol plunged, the downstream market as a whole recovered slowly, and demand was weak. Therefore, formaldehyde analysts at SunSirs expect that domestic formaldehyde prices may be consolidating at a low level in the near future.

Related listed companies: Yuntianhua (600096), Guangdong Rongtai (600589), Yantai Wanhua (600309), Anhui Jinhe (002597)

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