SunSirs: Shandong Formaldehyde Market Went up under Cost Support

Price trend

According to the data monitoring of SunSirs, the average price of formaldehyde in Shandong on September 7 was 880.00 RMB/ton, and the average price of formaldehyde in Shandong on September 8 was 950.00 RMB/ton, an increase of 7.95%, and the current price increased by 10.47% from the previous month. The current price has fallen by 22.13% year-on-year.

Analysis review   

Recently, the domestic market price of formaldehyde has risen slightly. As of September 8, the mainstream ex-factory price in Central China was around 950 RMB/ton, the mainstream manufacturer in North China was priced at 740 RMB/ton, and the mainstream ex-factory price in East China was 928 RMB/ton. Shandong Linyi Hongfa's 70,000-ton formaldehyde plant shut down. Recently, the start of formaldehyde plants in Shandong has increased, and shipments have increased slightly compared with the previous period. The trading atmosphere in the market was relatively positive, and the formaldehyde market was mainly rising.

Upstream methanol situation: Recently, the domestic methanol market has shown an overall upward trend, and some manufacturers have raised their ex-factory quotations by about 30-50 RMB/ton. Methanol market quotations in various regions also rose to varying degrees, among which Shandong and Shanxi have seen significant increases. The main factors contributing to the price increase this week were the favorable futures and the favorable impact of the rebound in downstream demand. In the short term, positive factors will remain for a period of time, and traders are even more bullish.

Downstream timber board companies have not resumed their work, and demand is average. Purchasing maintains rigid demand, and stocking mood is weak. The sales volume of formaldehyde companies is acceptable, and the overall negotiation atmosphere in the venue is average.

Market outlook

Recently, the upstream raw material methanol port futures have risen significantly. With the strong increase in the port mainland, the overall methanol has risen widely, the cost side support is strong, and the formaldehyde passively rises. Therefore, the formaldehyde analyst of SunSirs predicts that the domestic formaldehyde price will rise in the near future mainly.

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