In early November, formaldehyde oscillation was weak and the center of gravity shifted downwards. As of November 11th, the average price of formaldehyde in Shandong Province was reported at 1670 yuan/ton, a decrease of 8.87% from the beginning of the month.
Driving factor analysis
The cost side is declining, and the decline in formaldehyde is increasing
Methanol first rises and falls back, while formaldehyde passively weakens throughout the entire process. The decline is even greater during the falling phase, and it completely deviates from the rebound phase. The core contradiction in the current formaldehyde market is the insufficient demand for downstream boards during the off-season, the failure of cost support, and the continuous loss of processing fees. Short term formaldehyde is unlikely to rebound, with weak bottoming as the main factor, waiting for signals of recovery from board production.
The demand side is currently the core drag
The main flow of formaldehyde is in the artificial board industry, and in early November, mainstream artificial board factories in the field were affected by environmental control measures, resulting in a significant shutdown and direct impact on the essential consumption of formaldehyde. Other downstream products (such as formaldehyde, water reducing agents, etc.) mainly meet their own needs, with limited external mining increment and a lack of effective support for overall demand.
There are signs of passive reduction on the supply side
The operating rate of the formaldehyde industry itself is not high. After entering November, there is an expectation of load reduction in major production areas such as Shandong and Henan, and the expected loss is greater than the recovery. The utilization rate of formaldehyde production capacity is showing a downward trend. But this reduction is more of a passive contraction under weak demand and profit squeeze, with limited support for prices – companies are still offering discounts to maintain inventory, and the tendency to “trade price for quantity” is more obvious.
Market forecast:
In the short term, the conditions for the sharp rise and fall of formaldehyde are not sufficient, and it is more likely to maintain a weak range oscillation.
If methanol prices strengthen again, environmental control is relaxed, and sheet orders improve, formaldehyde may stabilize and even rebound slightly.
If methanol continues to fall, downstream plate production weakens further, and manufacturers accumulate inventory, formaldehyde still has room for further decline.
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