Price trend
According to the Commodity Market Analysis System of SunSirs, the prices of paraformaldehyde in Shandong were fluctuating and consolidating recently. At the beginning of the week, the average production price of paraformaldehyde in Shandong was 5,262.50 RMB/ton, and over the weekend, the average production price of paraformaldehyde in Shandong was 5,237.50 RMB/ton, a decrease of 0.48%, a month on month decrease of 2.78%, and a year-on-year decrease of 8.11%.
Analysis review
Upstream methanol situation: The domestic methanol market was fluctuating and declining, while the overall coal market was sluggish. Downstream products had weak demand for coal in the market, and overall sentiment was mainly wait-and-see. The cost of methanol was relatively weak. The methanol market in Dongying, Shandong negotiated a price of 2,390-2,410 RMB/ton for delivery. The methanol market in the Zibo region of Shandong Province had negotiated a delivery price of 2,400-2,420 RMB/ton, while the local methanol factory in central Shandong had quoted a delivery price of 2,480-2,500 RMB/ton. The factory price reference for Jining methanol was around 2,420-2,440 RMB/ton for factory delivery, while the delivery price reference for Linyi was around 2,460-2,500 RMB/ton.
Market outlook
Recently, the methanol market has slightly rebounded, and cost support is still acceptable. Downstream demand is unlikely to change significantly in the short term. Paraformaldehyde analysts from SunSirs predict that paraformaldehyde prices may follow cost increases.
