SunSirs: Shandong Formaldehyde Market Price Dropped

Price trend

According to the Commodity Market Analysis System of SunSirs, the formaldehyde market in Shandong recently declined. At the beginning of the week, the average price of formaldehyde in Shandong was 1,076.67 RMB/ton, while at the end of the week, the average price of formaldehyde in Shandong was 1,060.00 RMB/ton, a decrease of 1.55%. The price had decreased by 18.04% compared to last year.

Analysis review

Recently, the price of formaldehyde in the Shandong region fluctuated and fell. From the above chart, it can be seen that the formaldehyde market was mainly downward in the past two months, and the market continued to decline slightly this week. As of June 21st, the mainstream market price in Shandong region was 950-1,150 RMB/ton. In the early part of this week, the price of raw material methanol was weak and consolidated, with poor cost support, the pressure on formaldehyde inventory was significant, and the market was weak and declined. However, by the 21st, there was already a trend of stopping the decline and recovering.

Upstream methanol situation: This week, the domestic methanol market was weak and sorted out. With the arrival of high temperature weather, there were signs of stabilizing coal prices on the cost side, but there was no significant improvement in the demand side, and the methanol cost side was still relatively negative. At the same time, the supply continued to increase, inventory was expected to continue to increase, and market confidence was insufficient. Downstream and traders mainly purchase according to demand. However, on the 21st, the methanol market rose. The ex factory price of methanol in the southern region of Shandong was set at around 2,010-2,030 RMB/ton, while the delivery price in Linyi was set at around 2,070-2,080 RMB/ton. The local methanol factory in central Shandong quoted a price of 2,150-2,180 RMB/ton for self delivery from the factory. The negotiated price range for methanol in the Dongying region of Shandong was 2,010-2,020 RMB/ton.

Market outlook

Recently, the methanol market was rising, with good cost support and a high probability of formaldehyde following the trend. Therefore, formaldehyde analysts from SunSirs predict that formaldehyde prices in Shandong will mainly rise in the near future.

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