Price Trend

According to the commodity list data of business associations, formaldehyde prices in Shandong rose first and then fell in August. At the beginning of the month, the average price of DMF was 116.67 yuan/ton. At the middle of the month, the average price of DMF was 1180.00 yuan/ton. At the end of the month, the average price of DMF was 116.00 yuan/ton, an increase of 3.88%, and the current price fell by 23.93% compared with last year.

II. Market Analysis

Products: Domestic formaldehyde market prices rose first and then fell. As of the 28th, Hebei mainstream factory quotation was around 1030 yuan/ton, South China mainstream factory quotation was about 1150 yuan/ton, Shandong mainstream factory quotation was about 1060 yuan/ton, Jiangsu mainstream factory quotation was 1100 yuan/ton. Shandong Linyi Galaxy produces 120,000 tons of formaldehyde annually, and the content of formaldehyde is 36.7-37%. In the early stage, the supply of formaldehyde market was affected by environmental protection, and the price of formaldehyde rose. In the later stage, the price of formaldehyde fell after the stock rose.

Industry chain: Upstream methanol is rising and then falling. In early August, methanol re-entered the downstream channel with the concentrated release of bad news such as lower futures, high port stocks and abundant terminal stocks in the mainland, driven by the centralized overhaul of upstream equipment, strong pull-up in the northwest and poor rainy season. At the beginning of the month, the price was 1977.00 yuan/ton, at the middle of the month it was 2224.00 yuan/ton, and at the end of the month it was 208.00 yuan/ton, a decrease of 6.50%. The downstream market demand is still relatively general. Influenced by the first rise and then fall of cost, the price of formaldehyde rises and then falls simultaneously.

3. Future Market Forecast

The upstream methanol market is affected by the depressed news such as demand loss caused by environmental protection before National Day and sustained high import arrival. The insufficient cost support results in the overall market turnover being light. Therefore, formaldehyde analysts of the business society chemical branch expect that the domestic formaldehyde price will be weaker in the near future.