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 1,206.67 RMB/ton, and on the weekend, the average price of formaldehyde in Shandong was 1,200.00 RMB/ton, a decrease of 0.55%. The price remained unchanged 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 had mainly fluctuated slightly in the past two months, and this week the market continued to decline slightly. As of April 7th, the mainstream market price in Shandong region was 1,150-1,200 RMB/ton. This week, the price of raw material methanol had fluctuated and stabilized, and cost support was still acceptable. However, downstream panel factories had continued to have poor demand, weak support for formaldehyde procurement, and production enterprises had no plans to reduce load or stop production. The on-site supply had continued to rise, and the formaldehyde market had slightly declined.

Upstream methanol situation: The domestic methanol market had mainly experienced slight fluctuations. Downstream olefin factories had reduced their purchases of methanol from mainland China, and the purchasing sentiment in the mainland market was also average, with a focus on maintaining essential procurement. Coal prices temporarily had no support for the market, and both mainland and port sources were showing an increasing trend. However, traditional downstream and MTO consumption levels were expected to weaken, and the supply-demand gap in the industry was further expanding. It is expected that the domestic methanol market will mainly operate to be weaker in the short term.

Market outlook

The recent fluctuations in raw material methanol prices were mainly due to the accumulation of formaldehyde inventory and a cold trading atmosphere on the exchange. Therefore, formaldehyde analysts SunSirs predict that formaldehyde prices in Shandong will mainly fall in the near future.

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