I. Overall Review of Formaldehyde Market Trends

During the first half of April, domestic formaldehyde prices failed to sustain the upward momentum observed in March. The market generally exhibited a volatile, downward-leaning trend, seeking equilibrium amidst the interplay between production costs and demand; consequently, a strong wait-and-see sentiment prevailed across the market.

According to data from SunSirs, the average price of formaldehyde in the Shandong region was reported at 1,262 RMB/ton on April 14, representing a decline of 0.69% compared to the beginning of the month. Overall, market prices have remained relatively stable, generally fluctuating within the range of 1,430 to 1,510 RMB/ton.

II. Key Characteristics and Driving Factors of Market Trends

Fundamental Drivers

Stable Cost-Side Support, Lacking Unidirectional Drivers: The market for methanol—the core upstream feedstock for formaldehyde—maintained a generally volatile yet range-bound trajectory during the first half of April. With no significant unidirectional price swings, the cost support provided to formaldehyde remained relatively stable; this situation—neither generating upward momentum for formaldehyde prices nor creating a distinct negative impact via a cost collapse—was the primary reason why overall price fluctuations in the formaldehyde market remained limited.

Marginal Weakening of Demand-Side Support: In early April, although operating rates in downstream sectors—specifically artificial boards and adhesives—remained stable, the pace of new order inflows gradually slowed. Market activity was predominantly driven by restocking purchases to meet immediate operational needs, while speculative demand declined; this resulted in a marginal weakening of support for formaldehyde prices, leading to a slight softening in the quotes offered by manufacturers.

Supply-side conditions were relatively loose: During the monitoring period, the overall operating rates of domestic formaldehyde producers remained at an upper-moderate level. Spot market supply was relatively ample, and the supply-demand landscape shifted from a previous state of tight equilibrium to one of slight looseness; this further constrained the upside potential for formaldehyde prices and contributed to a modest decline in prices over the course of the period.

Market outlook

In late April 2026, the domestic spot market for formaldehyde is expected to be characterized primarily by high-level volatility and consolidation. In the short term, there is a possibility of a modest corrective rebound in prices, though upside potential remains limited. From a medium-to-long-term perspective—barring any unexpected positive drivers from either the cost or demand sides—the market is projected to gradually transition from its previous trend of unilateral upward growth into a pattern of high-level sideways fluctuation. Going forward, key factors to monitor include price fluctuations in upstream methanol, the sustainability of downstream demand, and changes in the operating rates of formaldehyde manufacturers.

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