Thread Content
Recently, the price of formaldehyde has seen a sharp rise; compared to last month, prices in most markets have increased by 50–150 yuan per ton, with some increases exceeding 200 yuan. This represents the fastest and largest increase in prices since the significant drop in prices last May. Currently, the factory price of formaldehyde is generally above 900 yuan, with some reaching around 1150 yuan. The specific factory prices in various regions are as follows: 950–1100 yuan in Central China, 880–1100 yuan in North China, 900–1100 yuan in East China, 1000–1150 yuan in Southwest China, 950–1100 yuan in South China, and 900–1100 yuan in Northeast China. There are three main reasons for the sharp rise in the price of formaldehyde: first, the price of the raw material methanol has risen significantly. Due to an improvement in the overall economic situation, coupled with the significant drops in previous periods, methanol prices have seen a sharp rise recently. Currently, the ex-plant prices of methanol in regions such as Shandong and Hebei are generally above 1,900 yuan, with some reaching around 2,200 yuan. Compared to before the Spring Festival, these prices have increased by 200–300 yuan on average, and in some cases by more than 400 yuan. Second, the operating conditions in the downstream sheet industry have improved. Due to factors such as the long Spring Festival holiday, the panel manufacturing industry operated at only about 30% capacity before the festival; the situation improved after the festival, with the current operation rate in this industry reaching around 50%, and in some cases exceeding 70%. As a result, the demand for formaldehyde has increased significantly. Thirdly, the price of formaldehyde dropped significantly in the earlier period; last year, in the first half of the year, its price reached around 2,500 yuan, but it fell sharply in the second half of the year, dropping to around 850 yuan at its lowest point, a decline of over 60%. With the overall economic situation improving, it is reasonable for prices to rise considerably. Overall, the market situation for formaldehyde remains not very optimistic; there is a high likelihood of further declines in the future. The main reason for this is that the recent upward trend appears to have been artificially driven. At present, the demand for formaldehyde in the downstream sheet industry remains relatively limited. Furthermore, due to the excessive and rapid increase in methanol prices, there is now a lack of further upward momentum, with some markets beginning to correct.