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

Price trend

According to the commodity market analysis system of SunSirs, the formaldehyde market in Shandong increased in March. At the beginning of the month, the price of formaldehyde in Shandong was 1,196.67 RMB/ton, and at the end of the month, it was 1,206.67 RMB/ton, an increase of 0.84%. The price had dropped by 1.36% compared to last year.

Analysis review

In March, the price of formaldehyde in the Shandong region increased. From the above chart, it can be seen that the formaldehyde market had fluctuated relatively little in the past three months, but this month's market had risen. As of March 27th, the mainstream market price in Shandong region was 1,150-1,260 RMB/ton. In March, the raw material methanol market fluctuated upwards, and the price of formaldehyde basically followed the changes in methanol. Downstream purchases remained in demand, and the receiving sentiment was still good. Formaldehyde manufacturers actively shipped, resulting in a slight upward trend in the market.

Upstream methanol situation: In March, the domestic methanol market rose, with equipment maintenance in Yulin Kaiyue, Xinxiang Zhongxin, Yunnan Yuntianhua, Gansu Huating, and Inner Mongolia Jiutai; Shandong Mingshui, Jiutai New Materials (Tuoxian), Qitaihe Baotailong, and Xinjiang Zhongtai had reduced production; Jiuyuan Chemical and Qitaihe Baotailong facilities had been restored. The loss was greater than the recovery, resulting in a decrease in capacity utilization. The supply side of methanol was influenced by favorable factors. The supply of goods continued to be abundant, and traditional downstream demand may increase. MTO needs to pay attention to the maintenance status of an MTO device in East China. SunSirs’ analysts predict that in the short term, the domestic methanol market prices will be on the rise.

Market outlook

Recently, the price of raw material methanol had consolidated, and cost support was still acceptable. The negotiation sentiment in the formaldehyde market was average. Therefore, formaldehyde analysts from SunSirs predict that the price of formaldehyde in Shandong will mainly increase slightly in the near future.

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