Cost Support Was Weak, Shandong Formaldehyde Market Fluctuated Slightly

According to the data of the monitoring product list of SunSirs, the recent Shandong formaldehyde market has been weak and consolidated. The average price of formaldehyde in Shandong was 1,213.33 RMB/ton, the current price was flat month-on-month, and the current price dropped by 10.12% year-on-year.

Analysis review

Recently, the market price of formaldehyde in Shandong has been weak and consolidated. From the monitoring data of SunSirs, it can be seen that the market of formaldehyde has mainly fluctuated slightly in the past month, and the recent market has been basically stable. As of August 18, the mainstream market price of formaldehyde in Shandong was 1,200-1,220 RMB/ton. Recently, the domestic methanol market fluctuated at a low level, the transaction situation was average, and traders were just in need of replenishment, and the mood was not good. The cost support was general, the downstream operating rate has not been greatly improved, the purchase of just-in-demand was maintained, the formaldehyde manufacturers were stably shipping, and the market was weak and consolidating.

Upstream methanol situation: The domestic methanol market fell in a narrow range. The cost of methanol production may be weakened, the supply of methanol did not decrease, and the downstream rigid demand was the mainstay. Crude oil prices were weak, supply was expected to increase, and demand changes were limited. Cost support may weaken, and there is a risk of inventory buildup. The methanol analyst of SunSirs predicts that the short-term domestic methanol market will be mainly sorted out.

This week, crude oil continued to decline sharply, and methanol futures fell together. The cost support situation was general, the construction of the downstream board factory had not improved, the demand for formaldehyde in the field was limited, the formaldehyde manufacturers were shipping normally, the market transaction was light, and the formaldehyde market was weak and consolidated.

Market outlook

Recently, the domestic methanol market has fallen, and the demand from downstream lumber mills is weak. Therefore, the formaldehyde analyst of SunSirs predicts that the recent price of formaldehyde in Shandong will mainly decline slightly.