Despite the Slump in the Feedstock, European Paraformaldehyde Prices are on the Stable Side
- 20-Oct-2022 7:11 PM
- Journalist: Nicholas Seifield
Rotterdam, Netherlands- This week, the feedstock Methanol prices in the European market have declined, despite Paraformaldehyde prices following a steady trend. With the week ending on 14th October 2022, the cost of Paraformaldehyde in the Netherlands stabilized at USD 1212/tonne (96% Paraformaldehyde) FOB Rotterdam. The prices are still stiffer, and the regional inventories are insufficient to fulfill the consumer's requirements. Manufacturing units are increasing their production rates with aerial efficiency to keep up with the demand from downstream disinfectant and adhesive enterprises.
In terms of the feedstock market, Methanol prices showcased a downtrend in the wake of ease in Natural gas costs and rising gas storage volumes for upcoming winters. Weak market sentiments, narrowing profit margins, and ease in supply chain issues forced suppliers to reduce Methanol prices in the European market.
In Spain, the export of Paraformaldehyde to Asia and other European countries' trade activities are moderate as per downstream ventures' requirements. However, energy and utility crises still exist in the European region, which capped Paraformaldehyde prices to decline further. The freight charges also reduced with a potential sign of easing inflation pressure and alleviated supply chain logjams. Although suppliers' demand lagged behind the seasonal patterns due to economic challenges, sellers stopped offering aggressive prices after depleting their stocks and focused more on avoiding product stockpiling. The need for Paraformaldehyde from the downstream wood industry elevated when it is consumed as a molding powder which helped the prices to sustain to a higher level. With the week ending on 14th October 2022, the cost of Paraformaldehyde in Spain stabilized at USD 1198/ton (96% Paraformaldehyde) FOB Algeciras.
According to ChemAnalyst, the price of Paraformaldehyde in the European market will decline further with ease in feedstock Methanol prices. Low Paraformaldehyde futures and low purchasing activity will cool down the price trend. However, the demand for Paraformaldehyde from the downstream adhesive and disinfectant industry will remain tepid in the forthcoming weeks.