Bearish Purchasing Market Fundamentals Affect The Global Paraformaldehyde Prices
- 22-Aug-2022 6:36 PM
- Journalist: Harold Finch
Rotterdam, Netherlands- With slight inclination in the Methanol cost due to accelerating demand from the end user resulted in such a price trend. In the Netherlands, the price of Paraformaldehyde was USD 1171/ton (96% Paraformaldehyde) FOB Rotterdam and USD 1078/ton (91% Paraformaldehyde) FOB Rotterdam.
European refiners are grappling with the combined impact of North Sea decline and skyrocketing prices of upstream Natural Gas. Producers are trying to minimize the use of Natural Gas as the market was affected by the Russian supply shutoff stemming from the conflict in Ukraine. However, Russian exports of crude from the Netherlands and Italy all rose sharply this week, which capped the prices from growing further.
In Taiwan, the price of Paraformaldehyde in Taiwan rolled over to USD 1050/ton (96% Paraformaldehyde) FOB Taichung. With a weak Methanol market and low buying appetite, traders are showing less interest in bulk trading in the region. The August spot price decreased with inadequate cost support and deterred market sentiments this week.
There was no inventory pressure in the region. Products were sparse, and downstream preservative regular procurement was the primary supply source. The price of Paraformaldehyde in significant manufacturing units remains unchanged, and lower cost has influenced some demand, but Paraformaldehyde's supply in the region remains sufficient.
Surging production rate and low operating prices among the manufacturing unit resulted in oversupplies of products. Exports from Taiwan to other Asian regions remain lull as bullish trade volume in the past few weeks resulted in sufficient supply.
According to ChemAnalyst, the price of Paraformaldehyde in the global market will remain bearish with limited purchasing activity and affected market sentiments. Methanol prices will cool down in the upstream market as the suppliers try to shift to other conventional sources, and low product demand will fluctuate the price. The spot price will also reduce, and surging inventories among the major producers will pressure them to clear their existing stockpiles.