SunSirs: The Formaldehyde Market in Shandong Fell First and Then Rose

Price trend

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong was volatile and consolidated in January. At the beginning of the month, the average price of formaldehyde in Shandong was 1,173.33 RMB/ton, and the lowest point on the 15th was 1,153.33 RMB/ton. By the end of the month, the average price of formaldehyde in Shandong had risen to 1,203.33 RMB/ton, an increase of 4.34%. The price had dropped by 0.28% year-on-year.

Analysis review

In January, 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, and this month's market had slightly declined before rising. As of January 29th, the mainstream market price in Shandong region was 1,150-1,260 RMB/ton. In January, the raw material methanol market first fell and then rose, and the price of formaldehyde basically followed the changes in methanol. However, downstream board factories had poor demand, and the atmosphere of on-site negotiations was weak, making it difficult for transactions to improve, putting pressure on formaldehyde manufacturers.

Upstream methanol situation: In January, the domestic methanol market first fell and then rose. The decline at the beginning of the month was due to an increase in domestic supply, which led to a bearish market mentality. Some methanol production enterprises lowered prices and offered discounts to ship, but the upstream inventory was high and the purchasing sentiment was average, resulting in weak methanol procurement prices. The increase after mid month was due to the limited availability of circulating spot goods in society, combined with the impact of weather and other factors on unloading speed. At the same time, the transportation cost from the northwest production area to the sales area market had increased, leading to a significant increase in domestic methanol prices. As supply gradually recovered, downstream receiving sentiment was average, and the market was mainly wait-and-see.

Market outlook

Recently, the price of raw material methanol had slightly rebounded, and cost support was still acceptable. However, downstream board factories had taken early leave, resulting in poor demand. Formaldehyde manufacturers gave up profits to continue the market. 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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