SunSirs: The Formaldehyde Market in Shandong Fluctuated and Consolidated

Price trend

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong was volatile and consolidated in December. At the beginning of the month, the average price of formaldehyde in Shandong was 1,173.33 RMB/ton, and the highest point on the 16th was 1,193.33 RMB/ton. By the end of the month, the average price of formaldehyde in Shandong had dropped to 1,173.33 RMB/ton, and the price had dropped by 6.38% year-on-year.

Analysis review

In December, the price of formaldehyde in the Shandong region fluctuated and stabilized. From the above chart, it can be seen that the formaldehyde market had relatively small fluctuations in the past three months, but this month's market had risen and then fallen, remaining basically unchanged. As of December 27th, the mainstream market price in Shandong region was 1,100-1,220 RMB/ton. In December, the price of raw material methanol also returned to the beginning of the month at the end of the month, with average cost support. Downstream sheet factories were affected by environmental protection, and demand continued to be poor. Production enterprises faced significant shipping pressure, resulting in a downward trend in the market.

Upstream methanol situation: In December, the domestic methanol market first rose and then fell. In terms of supply, due to the impact of the cold wave, most parts of the country experienced a cliff like cooling, leading to a significant increase in daily consumption of power plants and an increase in terminal stage purchases. However, downstream acceptance of high priced market coal was limited, and transportation continued to be mainly based on long-term contract coal; The cold wave weather had to some extent boosted the consumption of electric coal, and there aere still expectations of an increase in daily consumption of power plants on the basis of high levels. Some terminal demand purchases with insufficient coal reserves continued to be released. SunSirs’ Methanol Analyst predicts that the domestic methanol market was mainly weak and consolidating.

Market outlook

In recent times, the methanol market had been mainly fluctuating downward, with poor cost support, and downstream sheet metal factories were taking early holidays, resulting in a decline in demand. 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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