The Formaldehyde market in USA witnessed a notable downward trend in the fourth week of May xxxx. The bearish market trend was influenced by the imbalance between the supply and demand dynamics. While supply continued to be ample due to steady operational activities, Formaldehyde demand was dampened by declined buying interest in downstream sectors. The market sentiments were weak and subdued impacted by the overall trade dynamics and declined downstream demand from automotive and construction sector.
On the supply front, the feedstock Methanol prices contracted in the week which significantly influenced the overall cost structure. As primary feedstock of Formaldehyde that is Methanol prices dropped, the production cost declined in the market improving the cost-efficiency across the supply chain. Additionally, as production costs declined, profit margins remained steady encouraging Formaldehyde producers to maintain regular operational output without disruptions. As a...
