Price trend

In early February 2026, the domestic formaldehyde market entered its traditional off-season due to the approaching Spring Festival, with overall operation remaining stable and transactions sluggish.

According to data from SunSirs' commodity market analysis system, as of February 9th, the average price of formaldehyde in Shandong Province was 1,023 RMB/ton, unchanged from the beginning of the month and down 11.17% year-on-year. This price was at a one-year low and within a three-year oversold range.

Driving factors

On the cost side, the price of raw material methanol had weakened slightly, which should theoretically alleviated the cost pressure on formaldehyde, but it was still higher than the price of formaldehyde. Industry profitability was under pressure.

On February 9, the benchmark price of methanol on SunSirs was 2,223.33 RMB/ton, a decrease of 1.84% compared to the beginning of the month.

On the supply side, some plants had shut down or reduced their operating rates, leading to a decrease in capacity utilization, but the supply remained ample. Enterprises were facing significant inventory pressure and were focusing on stabilizing prices and reducing inventory.

On the demand side, downstream wood-based panels were entering a seasonal off-season, with reduced production before the holiday and only essential purchases. Other downstream applications were mostly for self-use, resulting in insufficient support. Demand may gradually recover after the Spring Festival.

Market outlook:

In the short term, with the Spring Festival holiday approaching and a strong sense of delisting, the market is expected to remain stable. In the long term, as the weather warms up, construction sites resume operations, and domestic policies aimed at stabilizing growth take effect, demand for building materials is expected to gradually recover, and prices may see a corrective rebound.

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