SunSirs: The Formaldehyde Market in Shandong Had Slightly Declined

Price trend

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong was volatile and consolidated in November. At the beginning of the month, the average price of formaldehyde in Shandong was 1,193.33 RMB/ton, and at the end of the month, the average price of formaldehyde in Shandong was 1,180.00 RMB/ton, a decrease of 1.12%. The price had dropped by 12.16% compared to last year.

Analysis review

In November, the price of formaldehyde in the Shandong region slightly decreased. From the above chart, it can be seen that the formaldehyde market had fluctuated less in the past three months, and orders were slightly declined this month. As of November 28th, the mainstream market price in Shandong region was 1,100-1,240 RMB/ton. In November, the raw material methanol market fluctuated and stabilized, with average cost support. The demand for downstream board factories continued to be weak due to environmental impact. Formaldehyde manufacturers started operating normally, and production enterprises faced significant shipping pressure, resulting in a downward trend in the market.

Upstream methanol situation: In November, the domestic methanol market was weak and consolidated, with weak coal prices and insufficient cost support. Although there was an expectation of a reduction in imports in December, overall imports remained at a high level, and supply side pressure remained. The total supply of methanol in the market was sufficient, and the downstream had entered the traditional off-season. For methanol, the main demand was for purchasing and the price was significantly reduced. SunSirs’ Methanol Analyst predicts that the domestic methanol market is mainly weak and consolidating.

Market outlook

In recent times, the methanol market has been mainly fluctuating downward, with poor cost support and average demand from downstream sheet metal factories. Therefore, formaldehyde analysts from SunSirs predict that the price of formaldehyde in Shandong will mainly decline slightly in the near future.

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