Urea Formaldehyde Concentrate (UFC) prices went up by 0.5% at previous levels in a firm but cautious market. Overall availability remained well balanced, with Gulf Coast production at about 85 percent of capacity and firm imports from Canada and Mexico filling the gap to meet year-end demand. Although logistics cost there had been increased mainly influenced by trucking shortages that raise freight prices, the increase was absorbed in total production cost and overall cost structure was kept stable. Demand from downstream remained strong, especially from plywood, MDF, furniture and consumption from automotive plastics applications is improving. These segments had steady flow offtake, so no downward pressure in price. Meanwhile, shortage of railcar, port congestions still challenge, cautious procurement from buyers hindered more price surge. Although production is less than fully unconstrained, the availability of essential raw material feedstocks that experienced no shortages during the month of December allowed for continuous operation, and thus, the market was able to sustain a marginally positive pricing trend with little turbulence.
