SunSirs: The Formaldehyde Market in Shandong Was Declining

Price trend  

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong declined in February. At the beginning of the month, the price of formaldehyde in Shandong was 1,210.00 RMB/ton, and at the end of the month, it was 1,196.67 RMB/ton, a decrease of 1.10%. The price had dropped by 2.97% year-on-year.

Analysis review

In February, the price of formaldehyde in the Shandong region decreased. From the above chart, it can be seen that the formaldehyde market had fluctuated relatively little in the past three months, but had slightly declined and then increased this month. As of February 26th, the mainstream market price in Shandong region was 1,150-1,260 RMB/ton. In February, the raw material methanol market declined, and the price of formaldehyde basically followed the changes in methanol. Moreover, after the Spring Festival, downstream board factories resumed work poorly, and the atmosphere of on-site negotiations was weak, with the formaldehyde market mainly falling.

Upstream methanol situation: In February, the domestic methanol market declined, and Jiutai New Materials Plant underwent maintenance; Shanxi Coking, Jiutai New Materials, and Inner Mongolia Rongxin Plant had been restored. The overall loss was greater than the recovery, resulting in a decrease in capacity utilization. The supply side of methanol was affected by bearish factors. Coal had relatively limited support for methanol production costs. The traditional downstream demand side will be improved. SunSirs analysts predict that the short-term domestic methanol market price consolidation will be the main focus.

Market outlook

Recently, the price of raw material methanol had been weakly consolidating, and downstream sheet factories had resumed work. However, the demand was still low. 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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