Global Paraformaldehyde Players Remain Skeptical About Dropping Prices
- 12-Dec-2022 3:11 PM
- Journalist: Francis Stokes
Madrid, Spain- In light of shrinking profit margins, Paraformaldehyde market players are reluctant to lower prices further. European players also admit that the year-end has kicked off, and economic challenges continue to hamper the disinfectant and adhesive industry, contributing to lower price trends.
With the week ending on 9th December 2022, the price of 96% Paraformaldehyde in Spain stabilizes on the lower side, which is USD 990/tonne (Ex-Valencia). However, following a significant increase in the domestic supply of Paraformaldehyde, the market began to show a clear downward trend and entered a continuous low channel. The profit margin and sales among the significant players shrunk, and limited trading activity made the bidding limited. The domestic market was dropping in the past few weeks with slow market offtakes. The market dynamics remained stable due to the significant production of Paraformaldehyde to fulfill the market requirement and bearish demand from the downstream sectors. Exports from Spain to other European and Asian regions were deterred, and suppliers were considering discounts on bulk purchasing to the overseas market.
The average product manufacturing cost in Taiwan ended on a weaker note due to sufficient supply. In terms of the feedstock, Methanol prices also declined with adequate product inventories among the significant manufacturing units. With the week ending on 9th December 2022, the cost of 96% Paraformaldehyde in Taiwan stabilizes to USD 1025/tonne (FOB Taichung). Fundamentals of the downstream adhesive and disinfectant market of Paraformaldehyde in Taiwan remained tepid. Paraformaldehyde market sentiments also ended on a bearish note with weak demand from the end-user industry.
As per ChemAnalyst, the Paraformaldehyde prices in the global market will decline further due to limited trading and weak market fundamentals. It is anticipated that the suppliers will try to sell their existing stocks at discounted price trends by the year-end. Downstream adhesive and disinfectant industries also operated cautiously per the end-user's requirement.