SunSirs: Costs Fell and Formaldehyde Market Declined

Price trend

According to the monitoring of SunSirs data, the average price of formaldehyde in Shandong on the 23rd was 1,026.67 RMB/ton, and the average price of formaldehyde in Shandong on the 24th was 1,000.00 RMB/ton, a decrease of 2.60%. The current price fell 23.47% year-on-year.

Analysis review   

Product: The domestic formaldehyde market price has recently fallen. As of the 24th, the mainstream factory offer in Hebei is about 820 RMB/ton, the mainstream factory offer in Shandong is 920 RMB/ton, and the mainstream factory offer in Jiangsu is 1,100 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 of formaldehyde unit has been restarted, with a formaldehyde content of 37%. Inventory of formaldehyde market rose, formaldehyde manufacturers' mentality was empty, and prices fell all the way.

Industry chain: The upstream methanol situation: The domestic methanol spot continued to decline, and the northwest of the main producing area fell sharply, while Inner Mongolia and northern Shaanxi dropped to 1,400-1550 RMB/ton; the consumer market fell in sync. East China and South China ports continue to increase their methanol social inventory, with a total inventory of 1.0315 million tons. The inventory in East China increased while that in South China decreased this week. The inventory accumulation in Jiangsu area is mainly due to the concentration of Taicang and Nanjing to the ship, but the pick-up volume in the week has not been significantly improved. The decrease in Guangdong's inventory is due to the low number of ships imported this week, and the expected arrival of ships is delayed due to the delay of unloading at the previous port. But the downstream market is mainly on demand, and the overall transaction is light. Formaldehyde enterprises in order to ship low prices, formaldehyde market all the way down.

Market outlook

Recently, the upstream methanol market fell, the cost side fell, and the demand side was weak, so the formaldehyde analyst of SunSirs believes that the domestic formaldehyde price or low consolidation will be the main trend in the near future.

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