SunSirs: Raw Material Prices Fell, Shandong Formaldehyde Market Declined

　　Price trend

　　According to the monitoring data of SunSirs, the Shandong formaldehyde market fell. On the 18th, the average price of formaldehyde in Shandong was 2,216.67 RMB/ton, and on the 20th, the average price of formaldehyde in Shandong was 2,083.33 RMB/ton, down 6.02%, and the price rose by 43.02% from the previous month, and the price increased by 95.31% year-on-year.

　　Analysis review

　　This week, the price of formaldehyde in Shandong area fell. According to the monitoring data of SunSirs, it can be seen that formaldehyde began to fall at a high level this week after more than two consecutive weeks of rising. As of October 20, the mainstream market price of formaldehyde in Shandong was 2,000-2,200 RMB/ton. Linyi Jinyimeng’s annual production capacity of 100,000 tons of formaldehyde production line has resumed normal production. Recently, the formaldehyde enterprises have started well, the inventory situation is relatively sufficient, the market trading atmosphere is general, and the formaldehyde market has fallen.

　　Upstream methanol situation: The negotiated price of the methanol market in central Shandong was 3,920-3,930 RMB/ton, and the local methanol factory in central Shandong had a stable price of 4,300 RMB/ton. The transaction was not good. The reference price of methanol market in Dongying, Shandong was 3,920 RMB/ton. The reference price of methanol in the southern Shandong region was 4,040-4,050 RMB/ton, and the reference price of local goods in Linyi was around 3,950 RMB/ton. There was no offer for logistics cargo. Market transactions were light. The methanol market fell sharply, unable to support the formaldehyde market, and formaldehyde followed the decline.

　　The start-up situation of the downstream plate mills was average, with a wait-and-see attitude towards the formaldehyde market and strong bargaining sentiment. Formaldehyde manufacturers maintained their shipments at low prices, the market inventory was poorly digested, and the formaldehyde market fell.

　　Market outlook

　　Recently, the methanol market has continued to fall, and the market is more worried about the methanol market, and cost support is not strong. Therefore, the formaldehyde analyst of SunSirs predicts that the price of formaldehyde in Shandong will fall mainly in the near future.