Price trend

According to the commodity market analysis system of SunSirs, the price of paraformaldehyde in Shandong Province recently dropped in shock. At the beginning of the week, the average production price of paraformaldehyde in Shandong Province was 4,775.00 RMB/ton, and at the weekend, the average production price of paraformaldehyde in Shandong Province was 4,737.50 RMB/ton, down 0.79%, down 5.72% month on month, and down 12.00% year on year.

Analysis review

Upstream methanol situation: The domestic methanol market continued to decline, coal prices were falling, and costs support for methanol production weakened. Traditional demand entered the off-season and demand was weak. At the same time, some methanol shutdown devices had recovered, and new investment devices such as Xuzhou Longxingtai and Jiyang New Energy had production plans in the near future. Overall, the supply in the mainland market was still relatively sufficient. Hengxin High Tech, Shenhua Xilaifeng, and a set of devices in Heilongjiang were undergoing maintenance; Guangxi Huayi, Jiuyuan Chemical, and Sinopec SVW units reduced production; Pucheng Clean Energy, Xinjiang Guanghui, and Jinfeng Wenxi devices had been restored. The overall recovery exceeded the loss, so the capacity utilization rate had increased this week. The supply side of methanol had negative effect.

Market outlook

Recently, the methanol market was weak and low, and the cost support was poor. Downstream companies maintained just needed to purchase, paraformaldehyde manufacturers were actively shipping, and SunSirs’ paraformaldehyde analysts expect the price of paraformaldehyde  will mainly fall slightly.

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