SunSirs: The Market Price of Formaldehyde in Shandong Had Slightly Declined

Price trend

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong had recently declined. At the beginning of the week, the average price of formaldehyde in Shandong was 1,173.33 RMB/ton, and on the weekend, the average price of formaldehyde in Shandong was 1,160.00 RMB/ton, a decrease of 1.14%. The price had dropped by 3.33% compared to last year.

Analysis review

Recently, the price of formaldehyde in the Shandong region had fluctuated and fallen. From the above chart, it can be seen that the formaldehyde market mainly fluctuated slightly in the past two months, with a slight decline this week. As of January 5th, the mainstream market price in Shandong region was 1,060-1,200 RMB/ton. This week, the price of raw material methanol fluctuated, with poor cost support. Downstream board factories took early leave, weak procurement, and the formaldehyde market declined.

Upstream methanol situation: The domestic methanol market was operating in a narrow range. In terms of coal supply, due to the impact of the cold wave, most parts of the country have 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 rely mainly on long-term contract coal; The cold wave weather had to some extent boosted the consumption of electric coal, and there were still expectations of an increase in daily power plant consumption on the basis of high levels. Some terminal rigid demand purchases with insufficient coal reserves continued to be released, but the supply and demand pattern of the coal market, which was slightly loose in balance, had not changed. The cost of methanol was favorable factors for the market.

Market outlook

In recent times, the methanol market had been weak and consolidating, with poor cost support. Downstream sheet factories had been on vacation, and supply and demand were weak. Therefore, formaldehyde analysts from SunSirs predict that the price of formaldehyde in Shandong will mainly decline in the near future.

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