For the Quarter Ending June 2025
North America
• The Formaldehyde Price Index rose to USD 817/MT FOB Texas by late June, reflecting a 13.7% quarterly increase. Price momentum was driven by cost-side volatility and steady downstream offtake.
• Why did the July 2025 price of Formaldehyde change in USA? The Formaldehyde Price Index in July showed only a slight uptick as cost pressures eased with declining methanol prices, while downstream demand remained steady but not strong enough to push prices higher.
• Formaldehyde Production Cost Trend was driven by a sharp drop in methanol feedstock prices in April eased cost pressures initially. However, rising methanol costs in late June reversed the trend, tightening margins and leading to price escalation.
• Formaldehyde overall demand outlook stayed positive, led by non-residential construction and a surge in furniture and automotive manufacturing. A rise in furniture sales and strong vehicle output supported resin consumption.
• The Formaldehyde Forecast points to a stable-to-firm trend in Q3, supported by ongoing infrastructure activity and stable end-use consumption in construction and automotive sectors.
APAC
• The Formaldehyde Price Index dropped to USD 137/MT FOB Shandong in mid-June, showing a sharp 15.8% quarterly decline due to oversupply and weakened demand.
• Why did the July 2025 price of Formaldehyde change in China? The Formaldehyde Price Index declined further due to structural oversupply, poor housing sector recovery, and reduced resin exports following new EU anti-dumping tariffs.
• Formaldehyde production cost Trend was impacted by Feedstock methanol prices, that were relatively stable until June, but a late-quarter uptick added pressure. However, high inventory levels and consistent plant operations kept overall supply abundant.
• The Formaldehyde demand outlook was influenced by weak construction activity, trade tensions, and falling exports dampened demand. Even with a rise in NEV sales supporting automotive applications, it was insufficient to offset construction weakness.
• The Formaldehyde Forecast remains bearish, with slow demand recovery across construction and export sectors. Marginal support may come from the EV boom, but it won’t fully reverse current bearish conditions.
Europe
• Formaldehyde Spot Price Index rose impressively to USD 752/MT CFR Hamburg in early June, marking an 11.8% quarterly increase, underpinned by tight supply amid logistical disruptions.
• Why did the July 2025 price of Formaldehyde change in Germany? In July, the Formaldehyde Price Index remained stable. Although demand stayed muted, specialized resin-grade products and contractual imports maintained a modest pricing premium.
• Formaldehyde Production Cost Trend: Higher methanol prices and severe port congestion in Rotterdam and Hamburg drove up shipping times and costs, tightening domestic availability and sustaining price levels.
• Formaldehyde Demand Outlook remained soft. Construction stayed under pressure from weak project starts and high input costs, while the automotive sector saw falling sales and production volumes. Emission-related regulations added uncertainty.
• The Formaldehyde Forecast for Europe signals marginal improvement, hinging on construction rebound and automotive sector stabilization. However, regulation-driven bifurcation between commodity and specialty formaldehyde may persist.
For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. formaldehyde market experienced a predominantly bullish price trend, driven by tight supply conditions and steady demand from key downstream sectors. Prices began the quarter at around USD 661/MT FOB Texas and rose steadily, influenced initially by regulatory uncertainty from the EPA's finalized risk evaluation under the TSCA, which created caution among manufacturers and contributed to a conservative market environment.
In February, despite declining methanol feedstock prices, formaldehyde prices surged due to persistent supply constraints and strong downstream demand, particularly from the automotive sector. The situation intensified in March with unplanned shutdowns at major production facilities operated by Foremark Performance Chemicals and Momentive Specialty Chemicals, significantly tightening domestic supply.
As a result, prices inclined by late March, marking an approximate 25% increase over the quarter. The construction sector showed mixed signals—sluggish housing activity limited demand, while ongoing infrastructure investments provided some support. In contrast, automotive production remained stable, underpinning consistent demand for formaldehyde in coatings and interior components.
Despite methanol price declines and regulatory pressures, formaldehyde prices were buoyed by strong industrial demand and constrained supply, pointing to potential continued volatility in the upcoming quarter depending on regulatory developments and production recovery.
APAC
In Q1 2025, the formaldehyde market in China displayed a generally stable to slightly bullish price trend, underpinned by a delicate balance between supply-side stability and fluctuating demand across key downstream sectors. Prices began the quarter at USD 175/MT FOB Shandong in January, supported by steady production costs and moderate demand, though trading activity was limited due to the Lunar New Year holidays.
By early February, prices dipped to USD 165/MT amid seasonal production slowdowns, weak demand from the construction and automotive sectors, and broader economic uncertainties. However, market conditions gradually improved through late February and March. A modest rebound in vehicle sales, government incentives for electric vehicles, and signs of recovery in the construction sector contributed to renewed demand for formaldehyde-based resins and adhesives.
Meanwhile, upstream methanol supply faced intermittent constraints due to plant maintenance, but this had limited impact on formaldehyde production due to stable procurement strategies and balanced feedstock availability. By the end of March, prices had risen reflecting a 2.4% month-on-month increase. Despite the overall quarterly decline of 3.4%, the formaldehyde market showed signs of recovery, driven by improving macroeconomic indicators and resilient demand from industrial applications, suggesting a cautiously optimistic outlook for Q2 2025.
Europe
In Q1 2025, formaldehyde prices in the Netherlands followed a consistently bullish trend, rising from USD 565/MT in early January to the end of March—a 33.6% increase. The surge was primarily driven by persistent supply-side constraints, elevated production costs, and stable demand from key sectors. Supply disruptions due to port labour disputes in Europe and tight methanol availability limited formaldehyde output, while high natural gas prices increased manufacturing expenses.
Despite sluggish demand from the construction sector and a decline in traditional automotive sales, procurement remained steady due to formaldehyde’s essential role in resins, adhesives, and coatings. The withdrawal of regulatory concerns around formaldehyde’s SVHC classification further boosted market confidence and buying sentiment in February. March saw a modest recovery in construction activity and easing of some supply issues, but the cumulative impact of earlier bottlenecks and firm demand kept prices elevated.
Overall, the market demonstrated supply-driven resilience, with manufacturers maintaining higher pricing amid cost pressures and logistical uncertainties. Barring a sharp drop in feedstock costs or a major demand shift, formaldehyde prices in Europe are likely to remain firm in the near term.
For the Quarter Ending December 2024
North America
In Q4 2024, the formaldehyde market in North America witnessed a steady upward trajectory, reflecting an 8.9% quarter-on-quarter increase. The primary drivers of this surge were the rising demand from the automotive and construction sectors, both of which showed notable recovery after previous slowdowns.
Increased automotive production, driven by higher consumer demand and the need to clear elevated inventories, contributed to the greater consumption of formaldehyde for adhesives and composite materials. Additionally, demand from the textile sector remained strong, bolstered by improved market conditions, and increased cotton imports. Despite these positive demand factors, the market was also influenced by supply-side challenges, particularly related to rising feedstock costs.
Methanol prices, a crucial input for formaldehyde production, remained stable but posed upward pressure on production costs, which in turn pushed formaldehyde prices higher. The overall market was also affected by logistical disruptions and the delayed production plans of OPEC+ countries, which tightened supply and further supported price increases. As Q4 progressed, however, price stability was achieved by the end of December, driven by balanced supply and demand dynamics despite fluctuating production costs.
APAC
In Q4 2024, the formaldehyde market in the APAC region, particularly in China, experienced a slight quarter-on-quarter decrease of 0.8%. This decline was largely attributed to subdued demand from key downstream sectors such as construction and textiles. The construction sector showed weak performance due to reduced activity and stagnant new orders, while the textile sector faced challenges from high inventory levels and weak export demand. These slowdowns were compounded by fluctuating weather conditions and seasonal demand patterns, which led to cautious buying behaviour and contributed to a generally weak market sentiment. However, despite these challenges, the formaldehyde market in China maintained a degree of stability. Supply levels were consistent, with domestic production sufficiently meeting demand, and no significant disruptions were reported in the manufacturing process. The decline in methanol prices, a crucial feedstock, helped reduce production costs, providing some relief to manufacturers. At the same time, logistical disruptions, such as shipping delays due to global port congestion and adverse weather events, had a minimal impact on local supply chains. Overall, while demand remained moderate, the balance between supply and production helped sustain price stability, although the market experienced minimal growth during the quarter.
Europe
In Q4 2024, the formaldehyde market in Europe, particularly in Germany, experienced a quarter-on-quarter increase of 9.0%. This growth was primarily driven by a combination of rising feedstock costs and moderate demand from key downstream sectors such as automotive, construction, and chemicals. Throughout the quarter, formaldehyde prices saw incremental increases, particularly as methanol and natural gas prices rose due to supply concerns in Europe. The impact of higher feedstock costs placed upward pressure on formaldehyde production costs, prompting some price hikes in the market. Despite these increased costs, formaldehyde producers managed to maintain stable supply levels, meeting demand from critical industries. The automotive sector saw a steady increase in new passenger car registrations, driving demand for formaldehyde-based resins and adhesives. Meanwhile, the construction sector faced challenges due to broader economic uncertainty and rising borrowing costs, which moderated its demand for formaldehyde-based materials. However, supply chain disruptions and logistical challenges, coupled with energy cost concerns, created an atmosphere of cautious optimism in the market. These dynamics, along with strong production in certain sectors, helped sustain formaldehyde prices and contribute to a modest quarter-on-quarter price increase during Q4 2024.
For the Quarter Ending September 2024
North America
In Q3 2024, the Formaldehyde market in North America witnessed a notable uptrend in prices. Various factors contributed to this price surge, including stable demand from downstream sectors, particularly in construction and automotive industries. The market also saw a moderate supply, with producers adjusting operations to meet consistent demand levels. Additionally, global supply chain disruptions and increased feedstock prices played a role in pushing Formaldehyde prices higher.
Within the USA, the market experienced the most significant price changes. The quarter saw a 34% increase compared to the same period last year, indicating substantial growth. From the previous quarter in 2024, prices rose by 3%, showing a steady upwards trajectory. A slight price increase of 1% was observed between the first and second half of the quarter, highlighting a consistent positive trend in pricing.
The latest quarter-ending price of USD 585/MT of Formaldehyde FOB Texas in the USA reflects the overall positive pricing environment, characterized by increasing prices and stable demand-supply dynamics.
APAC
Formaldehyde pricing in the APAC Region during Q3 2024 witnessed a significant decline, primarily influenced by several key factors. Sluggish demand from downstream industries, particularly in the automotive and construction sectors, contributed to the downward pressure on prices. The stable supply of formaldehyde coupled with low demand resulted in a balanced market situation, leading to price decreases. Additionally, the decrease in feedstock methanol prices further impacted formaldehyde pricing in the region. In China specifically, the market experienced the most substantial price changes during this quarter. The overall trends in the formaldehyde market in China exhibited a negative sentiment, with a notable -6% decrease from the same quarter last year. The recorded -2% change from the previous quarter in 2024 highlighted the ongoing downward trend. Moreover, the price comparison between the first and second half of the quarter revealed a significant -4% decrease. The quarter-ending price of USD 153/MT of Formaldehyde (37%) Ex-Shandong in China reflected the prevailing decreasing pricing environment, indicating a challenging period for formaldehyde producers and suppliers in the region.
Europe
In the third quarter of 2024, the European Formaldehyde market experienced a generally positive price trend, driven by several key factors. The stability in feedstock methanol costs, along with balanced supply and demand dynamics, contributed to a gradual increase in formaldehyde prices. Steady demand from downstream industries, particularly in construction and automotive sectors, further supported this upward movement. Additionally, increased market activity and reduced inventories played a crucial role in pushing prices higher. The Netherlands emerged as a significant influence in this price trend, reflecting the most substantial changes in the region. Although there was a -3% change compared to the same quarter last year, the quarter-on-quarter change remained stable at 0%, indicating a stabilizing market. Notably, there was a 2% increase in prices between the first and second halves of the quarter, showcasing a positive shift in market sentiment. By the end of the quarter, the recorded price for Formaldehyde reached USD 506/MT FOB-Rotterdam in the Netherlands. This figure highlights the positive sentiment within the pricing environment and reflects a steady upward trajectory in formaldehyde prices amid favourable market conditions
MEA
In the third quarter of 2024, the Formaldehyde market in the MEA region experienced a significant upward trend in pricing, particularly in Saudi Arabia. This increase can be attributed to a combination of factors that have driven market prices higher. Strong demand from essential sectors such as construction and automotive, along with supply constraints and rising feedstock methanol costs, have been the primary catalysts for this price surge. Additionally, geopolitical tensions and uncertainties in the Middle East have further contributed to the upward pressure on prices. Saudi Arabia has seen the most pronounced changes in Formaldehyde pricing dynamics during this quarter. There was a 2% increase in prices from the first half to the second half of the quarter, indicating a strengthening market sentiment. However, despite a significant -39% decline compared to the same quarter last year and a -7% decrease from the previous quarter in 2024, the latest recorded price reached USD 215/MT for Formaldehyde Ex-Jeddah in Saudi Arabia. This consistent price growth underscores a positive pricing environment characterized by robust demand-supply fundamentals and increasing market dynamics. The combination of strong sector demand and supply limitations reflects an evolving landscape that stakeholders must navigate to capitalize on emerging opportunities within the Formaldehyde market.
Frequently Asked Questions (FAQs)
Q1. What is driving the recent volatility in the Formaldehyde Spot Price across regions?
A1. Volatility is mainly driven by fluctuations in methanol feedstock prices, varying regional demand outlooks, and supply chain disruptions, especially in Europe and parts of APAC.
Q2. Why did Formaldehyde prices fall in China during Q2 2025?
A2. Prices declined due to persistent oversupply, sluggish construction activity, weak export orders, and rising inventories—despite stable production and modest automotive support.
Q3. How are upstream methanol trends influencing Formaldehyde Production Cost Trend?
A3. Methanol, being the primary feedstock, heavily impacts production costs. Declines in early Q2 lowered costs, but sharp rises in late June reversed the trend, tightening producer margins.
Q4. What is the Formaldehyde Demand Outlook for Q3 2025?
A4. Demand is expected to remain regionally mixed: steady-to-positive in North America, weak in China due to construction drag, and cautiously stable in Europe amid regulatory shifts and tight supply chains.
