Formaldehyde prices continue to decline

Due to the dual impact of lower raw material methanol prices and weak downstream demand, formaldehyde prices continue to decline. At present, the factory price of formaldehyde is mostly in the range of 1350 to 1550 yuan (t price, the same below), compared with November, most of them fell by 80 to 100 yuan, and high by more than 150 yuan. The specific factory prices are: 1400-1500 yuan in central China, 1,320-1,420 yuan in North China, 1400-1510 yuan in East China, 1,420-1,500 yuan in Southwest China, 1,450-1,520 yuan in South China, and 1,400-1,450 yuan in Northeast China.

From the perspective of the methanol price of raw materials, from September to October, the prices of imported methanol rise, the maintenance of large-scale methanol plants in the northwest, the rapid increase in the demand for dimethyl ether, the promotion of methanol gasoline, and the methanol ** market. A large increase occurred. However, since the beginning of October, the price of methanol has continued to fall, mainly due to the international methanol price decline, production recovery of methanol maintenance manufacturers, the new methanol plant put into operation, and the demand for dimethyl ether and acetic acid are calm. The current import CIF of methanol is US$358-360, down by US$8 from November. At present, the importation price of methanol ports in East China is RMB 2780 to RMB 2850, the tanking price of imported methanol ports in South China is RMB 2840 to RMB 2880, the ex-factory price of methanol in Shandong is RMB 2680 to RMB 2750, the ex-factory price of methanol in Shanxi is RMB 2500 to RMB 2700, and the ex-factory price of methanol in North China is 2300 to 2750 Yuan, the ex-factory price of methanol in northeast China is 2,500-2,800 yuan. Compared with November, the port price fell by 80 to 150 yuan, and domestic methanol prices dropped by 150 to 300 yuan. The main raw material for formaldehyde is methanol, and the drop in methanol prices has driven the price of formaldehyde down.

From the perspective of demand, due to the downturn in the real estate industry, the trend for the largest downstream industry of formaldehyde in the wood-based panel industry is poor, with low prices and a backlog of products. The demand for formaldehyde has weakened. The demand for cement water reducers, pesticides and other industries is also more general. Due to sluggish demand, the current operating rate of the formaldehyde industry is mostly maintained at a relatively low level of 50% or 60%. Due to the cold weather, the Northeast region has dropped to a level of 30% to 40%.

From the outlook, the formaldehyde market will remain at a low level in the short term. With the approaching of the Spring Festival holiday, plate companies, especially some small and medium-sized sheet factories, will have to start a holiday and reduce the demand for formaldehyde. In addition, due to the cautious attitude, dealers and downstream manufacturers will not store too much formaldehyde, and it will be difficult for the demand to increase formaldehyde. Prices, raw materials, methanol prices continue to weaken. Formaldehyde manufacturers are expected to respond to the market downturn by extending the Spring Festival holidays and reducing the operating rate.