SunSirs: Shandong Formaldehyde Market Prices Fluctuated and Consolidated

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 1,200.00 RMB/ton, and on the weekend, the average price of formaldehyde in Shandong was 1,297.50 RMB/ton, a decrease of 0.21%. The price had increased by 1.48% year-on-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 11th, the mainstream market price in Shandong region was 1,150-1,200 RMB/ton. This week, the price of raw material methanol had narrowly declined, with weak cost support. The operating rate of mainstream downstream plate factories was expected to decline, and the support for formaldehyde production was weak. The formaldehyde market had mainly slightly decreased.

Upstream methanol situation: The domestic methanol market had seen a narrow decline. In terms of supply, global coal supply was stable, domestic imports had increased, and the increase in domestic demand was not enough to support coal prices to continue operating at high levels; In terms of demand, the temperature had risen, the civilian electricity load had fallen, and the overall pressure on power plant inventory was relatively small. As of April 11th, terminals mainly relied on long-term cooperative replenishment, and replenished warehouses according to demand. The demand for coal in the market was relatively flat, and the overall sentiment was more wait-and-see. It is expected that the short-term thermal coal market will maintain a volatile and weaker operation. The cost side of methanol was bearish for the market.

Market outlook

Recently, the price of raw material methanol had been mainly fluctuating, and formaldehyde inventories had accumulated. Downstream sheet metal factories had lowered their operating rates as temperatures warm up. Therefore, formaldehyde analysts from SunSirs predict that the formaldehyde prices in Shandong will mainly decline in the near future.

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