High formaldehyde prices fall

Sinochem Xinwangxin has suffered from the dual impact of lower methanol prices of raw materials and weak downstream demand, and recently the price of formaldehyde has fallen at a high level. At present, the factory price of formaldehyde is mostly in the range of RMB 1,450-1,650 (t price, the same below). Compared with October, it is down by 60 to 100 yuan, and is higher than 120 yuan, basically returning to the level of September. The factory prices are: 1500-1600 yuan in Central China, 1,450-1,520 yuan in North China, 1,550-1,620 yuan in East China, 1480-1600 yuan in Southwest China, 1,550-1,650 yuan in South China, and 1,500-1600 yuan in Northeast China.

The main raw material for formaldehyde is methanol, and the drop in methanol prices has driven the price of formaldehyde down. After late October, methanol prices began to fall. The main reason was that methanol production was large. In October, the country produced 1.737 million tons of methanol, which was a substantial increase of 50.5% over the same period of last year. From January to October, the cumulative output was 16.752 million tons, an increase of 28.4% over the same period of last year. Second, the price of imported methanol has fallen. The current import CIF of methanol is in the range of 366-368 U.S. dollars, which is a drop of about 40 U.S. dollars from the beginning of October. At present, the importation price of methanol ports in East China is between RMB 2850 and RMB 2980, that of imported methanol ports in South China is between RMB 2950 and RMB 3000, that of methanol in Shandong is between RMB 2900 and RMB 3100, that of methanol in North China is RMB 2500 to RMB 3000, and that of Northeast China The price is between 2800 and 3100 yuan. Compared with October, the port price fell by 200-350 yuan, and domestic methanol prices dropped by 100-200 yuan.

In addition, the demand for formaldehyde is relatively flat. From September to November, it is the traditional demand season for formaldehyde. This year it is not busy in the peak season. According to formaldehyde manufacturers, the demand for downstream sheet, cement water reducer and pesticide has declined to varying degrees. The construction plant factory shutdown rate is the highest in the past two years. Due to poor demand, the current operating rate of the formaldehyde industry is mostly maintained at a relatively low level of 50% to 60%, and some manufacturers start and stop.