In April 2025, a groundbreaking ceremony was held for a 60,000-ton-per-year polyformaldehyde project. This initiative represents a key strategic move to establish a leading chemical new materials industrial group in western China and build the nation's largest high-end polyformaldehyde production base.

On May 21, 2025, the main facility of Yankuang Lunan Chemical's 60,000-ton-per-year polyformaldehyde project, EPC-contracted by China Chemical Tianchen Company, was successfully topped out. Upon full commissioning, Yankuang Lunan Chemical's total polyformaldehyde capacity will rank first nationally, cementing its industry leadership and potentially accelerating market consolidation and product structure upgrades.

Lihua Yi (Lijin) Engineering Plastics Co., Ltd. plans to construct an 80,000-ton-per-year polyformaldehyde facility, supported by two formaldehyde production units (total capacity: 360,000 tons per year). Utilizing methanol as feedstock, formaldehyde will be produced via the iron-molybdenum process. Despite current overcapacity pressures in China's polyformaldehyde market, this project leverages internationally advanced technology to precisely targeting gaps in the mid-to-high-end market, it is poised to break the foreign monopoly.

To advance industrial upgrading, Shenhua Ningxia Coal Chemical Group has formally decided to invest in a 60,000-ton polyformaldehyde project. This move aims to directly enhance domestic self-sufficiency in polyformaldehyde to meet sustained market demand growth.

This strategic deployment not only represents a key step for the company to extend its industrial chain and solidify competitive advantages but also constitutes a powerful reshaping of China's polyformaldehyde supply landscape.

Xinjiang Bingneng New Materials' 40,000-ton formaldehyde polymer project has entered the feedstock testing and maintenance phase, with full-scale production expected in December. Upon launch, it is projected to generate annual revenue of 500 million yuan and profits of 200 million yuan.

By 2025, China's domestic monthly formaldehyde polymer output will see a significant increase compared to 2024, with total annual production continuing its upward trajectory. With further capacity releases, market supply will notably expand, particularly in the mid-to-low-end segments. Although annual plant maintenance temporarily eases homogenized competition pressures, some facilities still plan to increase operating rates within the year, making overall supply rhythms difficult to predict. Overall, the 2025 polyformaldehyde market will feature ample supply, significant growth, and frequent fluctuations.

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