Global Paraformaldehyde Prices Slump Amid Mounting Inventories Among the Ventures
- 03-Apr-2023 1:47 PM
- Journalist: Jacob Kutchner
Rotterdam, Netherlands- The Global Paraformaldehyde prices ended up on a bearish note this month, where the market fundamentals remained bearish. Despite efforts to manage the supply-demand balance by cutting production rates, Paraformaldehyde traders are experiencing a softening trend.
European participants attributed the weaker market dynamics to low product demand and comfortable availability. Paraformaldehyde demand in the Netherlands remains lighter, with a slump in downstream adhesive and disinfectant industries. Market participation in purchasing the product from the European market in bulk declined, increasing the inventories among the manufacturing units. Trading movements have stalled, and the market lost momentum to restore the prices allowing participants to trade at the lower price level. With the week ending on 31st March, the Paraformaldehyde prices in the Netherlands declined to USD 884/tonne (91% Paraformaldehyde) FOB Rotterdam with a weekly decline of 5.35%.
In Taiwan, bearish spot price discussions, the steady surge in product inventories, and feeble exchanging exercises the Asian market brought about price correction. Declining interest in the product with feeble market feelings eased back the market trading exercises of Paraformaldehyde. The cost citation for Paraformaldehyde slumped as the European traders began buying the cargoes on a need-to premise. The price of Paraformaldehyde in Taiwan slumped to USD 795/tonne (91% Paraformaldehyde) Ex-Taipei, with a weekly decline of 2.70%. In terms of the feedstock market, Methanol prices also remain bearish, and traders in Taiwan offered the cargo at negotiable rates to reduce their existing inventories among the ports.
According to ChemAnalyst, the Paraformaldehyde price in the Global market will remain impacted by weak spots and contract price discussions. The cost of Paraformaldehyde is supposed to drop further, where low interest, adequate stock, and a feeble downstream market stay the driving variables for a weak price trend. Assuming that the cost pattern pursues the declining direction in the upcoming weeks, it will set one more downfall for the April contract costs.