Global Formaldehyde Market Stabilizes Due to Mute Trading Activities
- 21-Feb-2023 12:37 PM
- Journalist: Harold Finch
Rotterdam, Netherlands- The global Formaldehyde market follows a steady price trend on the week ending on 17th Feb 2023, resulting in the faltered downstream market. The market trading fundamentals have failed to increase as expected. End-user demand remains in the doldrums amid adequate inventories, lower bids, and offers among the suppliers.
In the Netherlands, Formaldehyde prices stabilize on the lower end with lower trading fundamentals for the European market. With the declining feedstock Methanol prices, the Formaldehyde market dwindled due to low purchasing activities and weak cost support. Regarding the downstream market, the demand for Formaldehyde from the downstream preservative industries and Natural Gas industries remains feeble with low trading fundamentals. Exports of Formaldehyde from the Netherlands to Germany and other European regions traded low, and suppliers offered discounts on bulk purchases.
The energy crisis is forcing the European economies into recession. The decline in industrial production in Europe with low product demand affected the market trading fundamentals.
Saudi Arabia's Formaldehyde market, which strengthened earlier, cooled further as participants re-factored muted demand in the Middle-Eastern region. No floating trades were heard this week. No new offers and bids were recorded this week due to feeble market fundamentals. With the week ending on 17th Feb, the price of Formaldehyde in Saudi Arabia was USD 357/tonne Ex-Jeddah.
According to ChemAnalyst, the price of Formaldehyde in the global market is anticipated to follow a bearish price trend with fewer bids and offers from the suppliers. The pace of gain is expected to lag the rally in the European market with the fear of recession in the forthcoming weeks. In Saudi Arabia, the spot buying interest will remain limited, with ample supply to fulfill domestic needs. The demand from the downstream preservative industry will not increase in the short term. The trading of Formaldehyde from Saudi Arabia to the Middle-Eastern region will remain feeble, coupled with sufficient product inventories.