Demand Disruption Fluctuates the Paraformaldehyde Price in Global Market
- 24-Jun-2022 5:54 PM
- Journalist: Jacob Kutchner
Rotterdam, Netherlands- Due to surging production rates among the major manufacturing units, the prices of Paraformaldehyde slowed with tepid market sentiments. In terms of the feedstock market, Methanex, a global supplier, and distributor of Methanol, had revised the prices for the European market. Demand stabilization from the downstream disinfectant industry had dampened the market fundamentals. Exports from the Netherlands to Belgium and Germany traded moderately with purchasing appetite according to end-user demand.
In Taiwan, the unprecedented production escalation of raw material Methanol and downstream disinfectant and adhesive enterprises in Taiwan stabilized the prices in the regional market. It was also heard that the imports from Taiwan to China and South Korea improved after observing the surging need for the product in the regional market, eventually creating oversupplies in the region. Bearish energy rates and operating costs have also affected the margins of local, regional producers.
“Oversupplies of Methanol in Asian region can disrupt the supply chain dynamics which can fluctuate the trading fundamentals of Paraformaldehyde” affirmed by our trusted source in Rotterdam.
Major Paraformaldehyde commodities had revised their contract prices for July shipments due to tepid trading from overseas suppliers. In terms of inventories, slowing demand impacted the market with surging stocks of Paraformaldehyde in major exporting countries, namely, Spain and the Netherlands.
According to ChemAnalyst, the price of Paraformaldehyde is expected to fluctuate in the forthcoming weeks. Feedstock Methanol prices in the Asian region are on the lower end due to oversupplies, which will further slow the prices of Paraformaldehyde in the Asian region. However, in the European region, the prices are still on the higher end, but deteriorating demand and surging production rates among the ventures will oscillate the price trend. Oscillation in Natural Gas and Naphtha values in the region will also remain the key factor for price change.