As Demand Remains Sluggish, The Global Formaldehyde Market Continues to Fall

Antwerp, Belgium- The global Formaldehyde market showcased a feeble purchasing fundamental, and the prices stayed on a downtrend in the wake of weak overseas demand and lower bids from the major manufacturing units. Given the persistent weakness in demand and slow market offtakes, the exports of Formaldehyde from the significant production units slumped.

In response to low demand and high inventories among enterprises, regional Formaldehyde traded sideways and lost ground. The demand for fresh stocks was limited with lower Formaldehyde settlements. The sharp decrease in March Formaldehyde settlement push prices further down amid a lack of support from supply-demand dynamics. There is also limited demand for Formaldehyde from the downstream preservative market, and downstream ventures are cautiously conducting their operations.

Exports of Formaldehyde from Belgium to other European regions slumped and slowed market offtakes in the region. The Formaldehyde price declined to USD 577/ton FOB Antwerp with a weekly slump of 1.02%, with the week ending on 17th March. The spread between feedstock Methanol and end-product Formaldehyde shrinks, narrowing the profit margin and sales among the enterprises.

In the USA, the recovery in demand remains below expectations amid surplus inventories and low operating rates among the downstream ventures. Downstream preservative players are not in a hurry to buy as they still have sufficient existing stocks. The downstream sector does not show a sign of recovery in terms of demand. In terms of the feedstock market, Methanol prices also showcased a Southward price trend with a decline in trading activities.

According to ChemAnalyst, the Formaldehyde market remains affected by slow demand recovery and continuous product utilization. In the short term, the trading activities will be limited, with discounts on bulk purchases from the supplier's end. The demand from the downstream preservative industries has yet to improve, but the feeble requirement for fresh stock due to oversupplies will drag the progression. Regarding feedstock, Methanol prices also move sideways with weak contract prices due to muted demand from the downstream enterprises.