Global Paraformaldehyde Market Slumps With Adequate Product Inventories
- 11-Jan-2023 4:03 PM
- Journalist: Peter Schmidt
Hamburg, Germany- The global Paraformaldehyde market was affected by the slow market offtakes and low purchasing activity as a declining downstream disinfectant, and adhesive demand further slumped the market with constrained demand across the globe. The Feedstock Methanol market was also weak on top of production cuts and high inventories among the primary producers. Mounting inventories because of drowsy interest constrained the makers to give discounts on the current Paraformaldehyde cargoes to clear their stocks.
With the week ending on 06th Jan, the price of Paraformaldehyde in the Netherlands declined to USD 963/ton (91% Paraformaldehyde) FOB Rotterdam. The utilization of existing inventories and restricted demand for new stock additionally impacts downstream markets. Costs appear to be in a crash mode, with constant downfall, as supplies continue to rise and demand stays stifled across the globe. Reserves have increased as less turnaround debilitated the cost influencing the cost pattern.
In Taiwan, the price trend also showcased feeble market dynamics and weak market fundamentals. Slow demand growth and limited market support highlight this week's uncertain outlook for the Paraformaldehyde market. The region's Paraformaldehyde market struggles with sufficient supply in 2023. With weaker regional export demand and bearish market fundamentals, the region's demand/supply was disrupted. With the week ending on 06th Jan, the price of Paraformaldehyde declined to USD 985/ton (96% Paraformaldehyde) FOB Taichung.
According to ChemAnalyst, the price of Paraformaldehyde will remain weak in the forthcoming weeks, with limited demand and adequate supply. With bearish purchasing activity and low market offtakes in the European market, the price may decline further. Upstream Methanol prices will also decline in Europe with lower spot prices and sufficient product inventories. With suppressed demand for Paraformaldehyde in Taiwan, major producers will offer discounts on bulk purchases. The exports from Taiwan to other Asian regions will decrease with bearish requirements of a product from the downstream market.