Price trend

According to the monitoring data of SunSirs, the Shandong formaldehyde market fell this week. At the beginning of the week, the average price of formaldehyde in Shandong was 1,393.33 RMB/ton. The average price of formaldehyde in Shandong at the weekend was 1350.00 RMB/ton, down 3.11%. The price fell by 18.18% month-on-month and the price increased by 15.71% year-on-year.

Analysis review

This week, the price of formaldehyde in the Shandong area fell. From the monitoring data of SunSirs, it can be seen that formaldehyde has fallen for seven consecutive weeks, and the price has continued to fall. As of December 8, the mainstream market price in Shandong was 1,270-1,350 RMB/ton. Linyi Jinyimeng's annual production capacity of 100,000 tons of formaldehyde production line has resumed normal production. Recently, formaldehyde companies started operations well, the market stocks were relatively sufficient, the supply exceeded demand, the sales volume of formaldehyde was not good, and the market continued to fall.

Upstream methanol situation: The domestic methanol market has continued to decline recently. After the upstream companies in Shaanxi, Mongolia and other places issued the latest ex-factory prices, the trading situation was different, the freight was high, traders were cautious, and most downstream companies purchased on demand. Crude oil prices had returned, but coal prices were not high. The short-term methanol market may decline weakly. The methanol market is not good enough to support the formaldehyde market.’

Downstream panel mills, affected by environmental controls, have continued to operate at a low operating rate. The industry tended to wait and see, buying on dips, and the market negotiation atmosphere was light. Formaldehyde manufacturers had difficulty in shipping and actively lowered their quotations. The formaldehyde market fell.

Market outlook

Recently, the domestic methanol market has fallen, cost support is weak, downstream demand is poor, and purchasing sentiment is weak. The formaldehyde analyst of SunSirs predicts that under the double pressure, the price of formaldehyde in Shandong will mainly fluctuate down in the near future.

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