European Paraformaldehyde Prices Stabilize in the Wake of Deteriorating Demand
- 01-Dec-2022 12:24 PM
- Journalist: Gabreilla Figueroa
Hamburg, Germany- The cost of Paraformaldehyde stabilizes in the European market with slow offtakes in overseas trading activities. With the week ending on 25th Nov, the price of Paraformaldehyde stabilizes at USD 1112/tonnes (96% Paraformaldehyde) FOB Rotterdam. Loosening market trading activities and sufficient feedstock Methanol availability in the Netherlands capped the prices from increasing further. However, slower downstream market sales and chronic cash flow problems continue to weigh on trading activities in the domestic market this week. The interest in Paraformaldehyde from the downstream adhesive and disinfectant industries declined with adequate inventory and frail interest from the end user.
In Germany, the prices remain steady as concerns over lower demand amid ample inventories put strains on the suppliers to clear their stocks at a discounted price. Provincial players accept they could be, highlighting a brisk response from Indian purchasers for December offers, yet they added lower-evaluated offerings because of weak trading sentiments. This week, trading from Spain was also affected, and significant Paraformaldehyde producers had to reduce their production rate. Asian suppliers have sufficient supplies from Taiwan and Spain, which seems to be ample for next month. With the week ending on 25th Nov, the price of Paraformaldehyde in Spain was USD 1028/tonnes (96% Paraformaldehyde) Ex-Valencia.
As per ChemAnalyst, the cost of Paraformaldehyde in the European market will additionally slide with low buying elements. Makers might begin offering around the benchmark evaluating at the low closures. However, the more drawn-out shipment timing for European cargoes could probably mean purchasers were looking for a discount. In conclusion, there is still a possibility of lower Paraformaldehyde prices in the forthcoming weeks, and suppliers will trade based on their needs. Exports from the Netherlands and Spain will decline with lower market fundamentals. Regarding the downstream market, the adhesive and disinfectant industries will operate cautiously, and lower demand will force producers to curtail their manufacturing rate to avoid further stockpiling.