SunSirs: Formaldehyde Market Fell Due to the Weak Demand

Price trend

According to the data of SunSirs, the formaldehyde Market in Shandong fell on December 2. The average price of formaldehyde on December 31, 2019 was 1060.00 RMB/ton, and the average price of formaldehyde on January 2, 2020 was 1046.67 RMB/ton, down 1.26%. The current price is down 9.38% year on year.

Analysis review        

Product: The price of formaldehyde in the domestic market has fallen. As of the 2nd day, the main factory quotation in Hebei is about 980 RMB/ton, that in South China is about 1,180 RMB/ton, that in Shandong is about ,1000 RMB/ton, and that in Jiangsu is 1,160 RMB/ton. The annual output of 120,000 tons formaldehyde plant in Linyi Yinhe, Shandong Province has been restarted, with the formaldehyde content of 36.7-37%. Linyi Jinyuan Chemical has two formaldehyde production lines with an annual production capacity of 80,000 tons and formaldehyde content of 37%. The plant has been restarted. Formaldehyde plant restart more, formaldehyde market stock increased, formaldehyde Market as a whole deal light, formaldehyde manufacturers shipping is not smooth, prices fell slightly.

Industrial chain: In recent days, the upstream methanol market has been narrowed. In terms of the mainland market, the overall changes have been small. The demand side has remained light. The port inventory continued to be large in the reservoir area, the market circulation sources gradually reduced, and the methanol price rose slightly, but soon maintained consolidation, with limited support for formaldehyde. The downstream market is affected by environmental protection regulations, with limited start-up and shrinking demand. The formaldehyde price tends to decline while the rigid purchase is maintained.

Market outlook

Recently, the upstream methanol market tends to be stable, the cost fluctuation is small, and the actual order transaction is limited. The downstream market operating rate generally maintains rigid purchase, and the cost and demand support is weak. Therefore, the formaldehyde analyst of SunSirs predicts that the domestic formaldehyde price may be mainly low consolidation in the near future.

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