Global Formaldehyde Prices Oscillate With Fluctuating Feedstock Cost
- 07-Feb-2023 4:54 PM
- Journalist: Jai Sen
Antwerp, Belgium- The Formaldehyde prices have oscillated in accordance with fluctuations in the feedstock Methanol cost. As per the supply/demand scenario, the suppliers revise their trading costs to sustain their profit margin and revenue.
In Belgium, the Formaldehyde market witnesses a stable price trend affected by limited trading and gradual utilization of inventories due to the tepid import offers in the European region. Sellers are optimistic and expect the prices to increase in the forthcoming weeks. Methanol prices stayed stable this week due to weak market sentiment and lowered new stock offerings, affecting the Formaldehyde market. Regarding product supply, suppliers remain skeptical about increasing the prices for the domestic and overseas markets. Lethargic demand has been the main reason behind the lower trading falls amid the recession fear in the region, and the arrival of previously purchased cargoes triggered ample supply. With the week ending on 03 Feb, the price of Formaldehyde in Belgium stabilizes at USD 566/tonne FOB Antwerp.
With improved trading fundamentals and a gradual increase in feedstock Methanol cost, Formaldehyde prices showcased a bullish price trend. With the week ending on 03 Feb, the price of Formaldehyde in the US surged to USD 449/tonne FOB Texas. Firmer price discussions for February lured purchasers back to the market with demand improvement. Adding to the scene have been conveyance delays for export cargoes and tight availability from a few regional providers. Demand has undoubtedly enhanced on contrasted with the past few weeks. Nevertheless, purchasers remain cautious at buys as they attempt to avoid building stocks, given the dubious viewpoint in end-user industries.
According to ChemAnalyst, With the uptick in trading activities and healthy spot discussions, the price of Formaldehyde is anticipated to increase in the upcoming weeks. In the European market, the regional supply of Formaldehyde will likely decrease with strong regional demand. However, recession fears and uncertainty in the economy will remain the major concern for the Petrochemical sector. As a result of low product inventories and strong spot discussions in the US, demand for Formaldehyde is expected to improve. In terms of the feedstock market, the spread between Methanol and Formaldehyde will expand, increasing the profit margin and sales among the ventures.