Purchasing Activities Improve the Global Paraformaldehyde Market With Healthy Trading Discussions
- 25-Jan-2023 5:46 PM
- Journalist: Yage Kwon
Rotterdam, Netherlands- With the increment in feedstock Methanol, the market trading fundamentals of Paraformaldehyde surged with an increase in spot discussions in the global market. In the European market, the continuous utilization of Paraformaldehyde coupled with the solid downstream demand led the prices to inflate in their regional market. With the week ending on 20th Jan, the cost of Paraformaldehyde in the Netherlands surged to USD 969/tonne (91% Paraformaldehyde) FOB Rotterdam.
The demand for Paraformaldehyde from the downstream disinfectant and adhesives gradually improved with cautiously operating downstream ventures. However, the exports of Paraformaldehyde from the Netherlands to the European and Asian regions traded on a weaker note due to adequate stocks in the region. The production cost of Methanol among the ventures surged, whose influence can be seen on the Paraformaldehyde price.
With the increase in demand for Paraformaldehyde in India, the cargoes traded from Spain to India and Southeast Asia, resulting in a firmer price trend. Paraformaldehyde cost increased owing to bullish European demand trends and constrained product availability.
In the USA, the price of Paraformaldehyde stabilizes on a Higher end with trading activities on an immediate basis from the downstream disinfectant and adhesive industries. Spot trading discussions improved with the continuous utilization of stocks. With the week ending on 20th Jan, the price of Paraformaldehyde in the USA stabilizes at USD 1732/tonne FOB Michigan.
According to ChemAnalyst, the demand for Paraformaldehyde will improve in the forthcoming weeks, with an increase in spot prices and continuous utilization of inventories. With bullish purchasing activity and high market offtakes in the European market, the price may increase further. Upstream Methanol prices will also increase in Europe with higher spot prices and crippling product availability. In the USA, the price is expected to remain stable, with suppliers trading the cargoes in need-to-premise. The demand for Paraformaldehyde from the downstream enterprises will improve further, and high trading discussions will accelerate the cost pattern.