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

Price trend

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong had recently risen. At the beginning of the week, the average price of formaldehyde in Shandong was 1,196.67 RMB/ton, and on the weekend, the average price of formaldehyde in Shandong was 1,203.33 RMB/ton, an increase of 0.56%. The price had dropped by 5.50% year-on-year.

Analysis review

Recently, the price of formaldehyde in the Shandong region had fluctuated and risen. From the above chart, it can be seen that the formaldehyde market had been mainly fluctuating slightly, with a narrow upward trend this week. As of March 21st, the mainstream market price in Shandong region was 1,150-1,260 RMB/ton. This week, the price of raw material methanol had risen, with good cost support. Downstream plate factories had slow demand and consumption, and formaldehyde manufacturers were under greater pressure to ship, resulting in limited market growth.

Upstream methanol situation: The domestic methanol market was operating in a narrow upward trend. Anqing Shuguang and Xiaoyi Xindongheng’s equipments were on maintenance; Guangju New Materials, Yunnan Qumei, and Yunnan Pioneer Plants had reduced production; Daqing Methanol Plant, Sinopec Changcheng, and Xinjiang Xinye Plants had been restored. The overall loss was greater than the recovery, resulting in a decrease in capacity utilization. The supply side of methanol was influenced by favorable factors. The low volume of methanol arriving at the port and the low level of port inventory had provided strong support to the market, resulting in a slight increase in the methanol market.

Market outlook

Recently, the price of raw material methanol had risen, with good cost support. However, the imbalance between supply and demand in the formaldehyde market had not improved. Therefore, the formaldehyde analyst at SunSirs predicts that the formaldehyde price in Shandong will mainly fluctuate and consolidate in the near future.

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