SunSirs: The Formaldehyde Market Fell Slightly Due to Weak Demand

Price trend

According to the data of the Commodity List of SunSirs, the average price of formaldehyde in Shandong on June 2 was 880.00 RMB/ton, and the average price of formaldehyde in Shandong on June 3 was 873.33 RMB/ton, a decrease of 0.76%. The current price fell by 27.62% year-on-year.

Analysis review   

Product: Recently, the domestic formaldehyde market price has dropped slightly. As of June 3, the mainstream factory offer price in Hebei was around 715 RMB/ton, the Shandong factory offer was 810 RMB/ton, and the Jiangsu factory offer was 1,065 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%. Recently, the average price of formaldehyde in Shandong has been mainly stable and volatile slightly. The start-up of formaldehyde enterprises has been basically stable. The market supply was acceptable. The atmosphere of trading on the market was weak and the formaldehyde market has declined slightly

Industrial chain: Upstream methanol situation: Port supply was sufficient, high inventory has formed a certain suppression on the methanol market, the industry's mentality was weak, the market trading atmosphere was weak, and prices continued to fall. Methanol market fell weakly and could not provide cost support to formaldehyde. The orders of wood board factories continued to shrink. The terminal was mainly just needed. The formaldehyde companies' mentality was general. Formaldehyde enterprises' quotations were affected by the poor raw material market, and the market fell slightly.

Market outlook

Recently, the price of upstream methanol fluctuated lower, mainly due to weak cost support, and the trading atmosphere on the floor was light. Therefore, the formaldehyde analysts of SunSirs predict that the domestic formaldehyde prices may fall mainly in the near future.

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