For the Quarter Ending March 2025
North America
In Q1 2025, the North American Paraformaldehyde market consistently reflected bullish sentiments, driven by a confluence of rising production costs, supply-side constraints, and strong downstream demand. In January, market confidence was underpinned by stable production costs and sufficient inventory levels, despite seasonal slowdowns in construction and mixed performance in coatings. However, the anticipation of tariff-related supply chain adjustments, led to a surge in trading activity, reinforcing the bullish sentiment.
By February, bullish momentum continued as feedstock costs began to rise, especially with formaldehyde prices trending upward. Strong domestic demand from the automotive and construction sectors, supported by infrastructure spending, kept market conditions firm.
In March, the market experienced heightened activity, primarily from the agrochemical sector ahead of the plantation season, alongside a mixed yet resilient construction demand. As inventory levels thinned, suppliers responded with upward price adjustments to align with stronger consumption. Continued increases in feedstock costs, tariff-related concerns, and shifting sourcing strategies further intensified bullish market dynamics, solidifying the positive trajectory of the U.S. Paraformaldehyde market throughout the quarter.
APAC
In Q1 2025, the Paraformaldehyde market in the APAC region demonstrated mixed market sentiments, marked by phases of stability, bearishness, and slight bullishness influenced by varied sectoral demand and supply dynamics. In January, the market maintained stable pricing despite bearish undertones, as demand from the construction sector remained limited. This stability was largely underpinned by sufficient inventory levels and cautious procurement activities amidst the economic uncertainties. Moving into February, the market sentiments shifted downward due to low demand from coatings and construction enterprises, prompting a slight reduction in quotations. The lingering effects of the Lunar New Year further suppressed trading activity, and buyers hesitated to place new orders, relying instead on existing stockpiles. However, by the end of the month, demand from the agrochemical and construction sectors started to stabilize the market, setting the stage for a modest rebound. In March, the ongoing plantation season revitalized the agrochemical sector, driving up consumption and stimulating trading activity. This improvement in demand, coupled with a steady outlook from the construction industry, led to a minor price recovery and reflected a shift toward bullish sentiment. These fluctuations throughout the quarter highlight the dynamic nature of Taiwan’s Paraformaldehyde market, characterized by cautious optimism and sector-specific demand patterns.
Europe
In Q1 2025, the Paraformaldehyde market in Europe consistently exhibited bullish sentiments, driven by a combination of surging production costs, constrained supply, and growing demand across key downstream sectors. In January, market prices remained elevated as rising feedstock costs, particularly in formaldehyde, fueled production expenses. Limited output due to labor shortages, port congestion, and supply chain bottlenecks further restricted availability, sustaining bullish sentiments despite subdued industrial demand. Moving into February, bullishness persisted as operational challenges, including rising energy costs and reduced production rates, prevented any price corrections. Although downstream sectors such as construction and automotive showed weakness due to inflation and regulatory hurdles, and the inability of manufacturers to cut costs, kept market momentum strong. In March, the bullish trend was reinforced by a notable surge in demand from the agrochemical sector, spurred by the onset of the plantation season. Steady interest from construction enterprises and growing international orders further strengthened market activity. Market participants responded by ramping up production and revising quotations upward, supported by a widening spread between formaldehyde and paraformaldehyde. The interplay of rising costs, tight supply, and strengthening downstream demand collectively sustained bullish market conditions throughout the quarter in Europe.
For the Quarter Ending December 2024
North America
The U.S. paraformaldehyde market experienced a bullish trend throughout the last quarter of 2024 due to a combination of production disruptions, rising feedstock costs, and strong downstream demand. Supply tightness, caused by operational issues in manufacturing plants, led to a supply gap, which pushed prices upward. As demand for Paraformaldehyde from sectors like adhesives, coatings, and textiles increased, suppliers responded by raising their quotations.
The market continued its upward trajectory in November, driven by rising feedstock costs and continued robust demand from various industries. Despite mixed performances in sectors such as construction and paints, the overall market remained optimistic, with suppliers adjusting their prices to reflect supply and demand dynamics.
Similarly, in December, prices continued to witness bullishness amid the potential disruptions, such as labor disputes and rising freight costs, remained concerns, yet the market demonstrated resilience. Throughout the quarter, market behavior continued to showcase bullishness as participants kept raising their quotations, reflecting the current market sentiments amid external uncertainties.
APAC
In the APAC region, the paraformaldehyde market experienced fluctuations throughout the fourth quarter of 2024, driven by varying demand and supply dynamics. Initially, prices rose due to a surge in the demand from the textile and electronics sectors, combined with supply constraints from local producers reducing output to manage inventory. Additionally, increased methanol prices contributed to higher manufacturing costs. The market witnessed a slight decline in November, as the market sentiments were affected by the disruptions caused by a typhoon. Similarly, the market faced challenges in December, with a decline in prices attributed to sufficient inventory levels and moderate demand from the construction sector. Tightened supply, partly due to port congestion and the suspension of trading by some companies, kept market conditions uncertain. However, effective inventory management allowed for a balanced supply-demand situation. Despite production cost increases from higher feedstock prices, market participants maintained a cautious approach, adjusting their operations to align with evolving market conditions, ensuring steady market sentiment amidst ongoing challenges.
Europe
During the fourth quarter of 2024, the paraformaldehyde market in Germany experienced bullish sentiments, supported by rising demand from multiple sectors, including construction, coatings, and packaging. Increased use of paraformaldehyde in resins, particularly in the automotive and construction sectors, boosted demand. However, challenges such as tightening supply, driven by rising production costs and limited methanol availability, strained the supply chain, with port congestion in Hamburg further exacerbating logistical issues. Despite these pressures, market participants maintained cautious trading practices, reflecting the robust but uncertain market conditions. Demand was consistent across the downstream sectors, with construction and coatings showing mixed performance, while the packaging sector struggled. Economic uncertainties, including political instability and rising borrowing costs, weighed on the broader economy but had a limited impact on the demand recovery in some sectors. The combination of supply constraints, sector-specific demand, and logistical challenges contributed to bullish market activity, with suppliers maintaining their high quotations despite fluctuating conditions, highlighting the market’s resilience amidst ongoing challenges.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Paraformaldehyde (PFA) market in North America experienced a significant shift in pricing dynamics, primarily due to several key factors. Rising feedstock costs and increased production expenses, coupled with supply chain challenges, created an environment conducive to price increases. Additionally, stable demand from various downstream industries further supported the upward trend in prices. The global economic landscape and geopolitical tensions also contributed to overall price inflation in the region.
Within the USA, the market saw the most pronounced price changes compared to other North American regions. The quarter demonstrated a consistent positive trend in pricing, although there was a notable -16% change from the same period last year. Furthermore, a slight -1% decrease from the previous quarter in 2024 indicated a minor dip before the market regained momentum. The comparison between the first and second halves of the quarter showed a 1% increase, reflecting a strengthening pricing environment.
By the end of the quarter, the price of Paraformaldehyde (PFA) FOB Michigan in the USA reached USD 1,090/MT. This figure highlights a prevailing positive sentiment towards pricing stability and growth in the region, indicating that despite previous fluctuations, there is an overall optimism regarding future market conditions.
APAC
In the third quarter of 2024, Paraformaldehyde (PFA) pricing in the APAC region saw a significant decline, driven by several key factors. The prices fell primarily due to weakening demand from downstream industries, especially in the resin and fertilizer sectors. Additionally, an oversupply of Paraformaldehyde contributed to the downward pressure on prices, resulting in a negative pricing environment. India experienced the most notable price changes during this period, reflecting these broader market trends. The overall pricing trends indicated a consistent decrease, correlating weakening demand with falling prices. Compared to the same quarter last year, prices dropped by 9%, highlighting the ongoing downward trajectory. However, there was a slight increase of 4% from the previous quarter in 2024, suggesting some volatility in the market. In the second half of the quarter, prices decreased further by 7%, reinforcing the prevailing downward trend. By the end of the quarter, the price for Paraformaldehyde 96% CFR JNPT in India was recorded at 69875 INR/MT. This figure underscores the negative sentiment in the market and emphasizes the challenges faced by stakeholders as they navigate fluctuating demand and supply conditions. The persistent decline in prices reflects ongoing issues within the industry that need to be addressed for stabilization.
Europe
Throughout the third quarter of 2024, the Paraformaldehyde (PFA) market in Europe experienced a significant increase in prices, driven by several key factors. A notable uptick in demand from various industries, particularly in the resin and pharmaceutical sectors, led to higher consumption and subsequent price hikes. Additionally, stable supply conditions and improved logistical efficiencies supported this price surge, creating a balanced market environment. The growing emphasis on sustainability and eco-friendly practices further enhanced demand for PFA, contributing to the overall positive pricing trend. The Netherlands witnessed the most substantial price changes during this period, reflecting broader market dynamics. While there was a -7% decrease compared to the same quarter last year, the market saw a 2% increase from the previous quarter in 2024, indicating a shift towards a more optimistic market sentiment. The 2% price rise between the first and second halves of the quarter highlighted a steady upward trajectory in pricing. By the end of the quarter, the price for Paraformaldehyde 91% FOB Rotterdam in the Netherlands reached USD 608/MT. This figure encapsulates the positive pricing environment observed throughout Q3 2024 and underscores the strengthening demand and stable supply conditions that have characterized the market during this period.
For the Quarter Ending June 2024
North America
During Q2 2024, the Paraformaldehyde (PFA) market in North America witnessed a pronounced decrease in prices, influenced by several key factors. The market was predominantly affected by an oversupply scenario, coupled with weak demand from downstream industries such as adhesives and textiles. This imbalance between supply and demand led to significant downward pressure on PFA prices. Additionally, increased competition from international producers and the commencement of new production facilities exacerbated the oversupply issue, further straining the market.
In the USA, where the most substantial price changes were observed, the overall trend reflected a continuous decline in PFA prices. Seasonal factors also played a role, with reduced consumption patterns typically seen during the mid-year period. The correlation in price adjustments was evident, with a marked -33% change from the same quarter last year, underscoring the significant year-over-year drop. However, compared to the previous quarter in 2024, the prices remained stable, showing a 0% change. Despite this quarterly stability, the first half of Q2 experienced a slight downturn compared to the second half, with a recorded -2% change.
The persistent downward trend underscores the challenging market conditions, characterized by ample supply and lacklustre demand, ultimately leading to a bearish market sentiment. This scenario reflects the broader regional dynamics and encapsulates the significant influences driving the price trajectory in North America for Paraformaldehyde during Q2 2024.
APAC
The Paraformaldehyde (PFA) market in the APAC region experienced a notable upward trend in prices during Q2 2024. This quarter was marked by several critical factors that significantly influenced market prices. Firstly, robust demand from downstream industries, including adhesives and resins, coupled with constrained supply owing to production disruptions, drove prices higher. Additionally, increased production costs, primarily due to elevated feedstock methanol prices, further exacerbated the upward price pressure. Market participants also faced logistical challenges, contributing to higher freight costs and, consequently, elevated PFA prices. Furthermore, strategic stockpiling by key market players in anticipation of future demand spikes added to the price escalation. In India, the PFA market demonstrated the most pronounced price changes within the APAC region. The overall trend was bullish, driven by heightened demand from the adhesive sector and supply limitations. Seasonality played a role, with increased industrial activity in specific periods contributing to price volatility. The correlation between robust downstream demand and constrained supply was evident, resulting in a 2% increase compared to the same quarter last year and a substantial 5% rise from the previous quarter in 2024. Notably, prices surged by 4% between the first and second half of the quarter, reflecting a consistent increasing sentiment. Concluding the quarter, the price of Paraformaldehyde 96% in India underscored a positive pricing environment fuelled by strong market fundamentals and strategic purchasing behaviour. The overall market sentiment remained bullish, supported by sustained demand and supply constraints, signifying a favourable pricing trajectory for PFA in the APAC region.
Europe
In Q2 2024, the European Paraformaldehyde (PFA) market exhibited a consistent downward pricing trend. The quarter was marked by several significant factors that influenced market prices. Firstly, a persistent oversupply, compounded by subdued demand from key downstream sectors such as adhesives, textiles, and preservatives, exerted downward pressure on PFA prices. Economic uncertainties and geopolitical tensions further exacerbated market sentiment, leading to cautious purchasing behaviour and reduced bulk buying. Additionally, the feedstock Methanol market remained stable but provided weak cost support, failing to counterbalance the declining PFA prices.
In Germany, where the most pronounced price changes occurred, the overall trend mirrored the broader European market but with intensified effects. Seasonality contributed minimally, as demand remained lacklustre even during typically stronger periods. The correlation between supply glut and reduced industrial activities precipitated notable price declines. Compared to the same quarter last year, prices plummeted by 21%, reflecting the sustained negative pricing environment. From the previous quarter in 2024, prices declined by 2%, indicating a persistent but slightly moderated downward trend. The price comparison between the first and second halves of the quarter further demonstrated a marginal decline of 0.5%, reinforcing the bearish market sentiment. This consistent decrease underscores a negative pricing environment, driven primarily by oversupply and weak demand dynamics. The market outlook remains cautious, with little indication of imminent recovery in pricing.
