For the Quarter Ending June 2022
North America
In the US, the price of Paraformaldehyde surged in Q2 2022 with surging prices of feedstock Methanol in the regional market. Local producers also rushed the prices of products for their domestic market. Bullish purchasing appetite and surging interest of suppliers in Paraformaldehyde accelerated the cost with succeeding months. Traders purchased bulk due to inflation and healthy demand from downstream adhesive and disinfectant industries. Logistics constraints and surging transportation costs also remained the key factor for the price hike. Exports from the US to China and South Korea operated moderately according to the requirement of respective market demands. Major Paraformaldehyde producers revised their product prices for the domestic and international markets.
Asia Pacific region
In Q2 2022, the price of Paraformaldehyde in the Asia Pacific region declined with succeeding months. The price decline was due to bearish feedstock Methanol prices in the region. In Taiwan, the cost of Paraformaldehyde in June slipped to USD 1141 (96% Paraformaldehyde) FOB Taichung. An ample supply of Methanol from Iran and Saudi Arabia created stockpiling products in the domestic market. Dragged by the degree of weakness in the prices of feedstock, the prices of Paraformaldehyde slipped in the regional market. In terms of inventories, the stockpiling increased drastically among the manufacturing unit. After observing the supply/demand equilibrium, local producers of Paraformaldehyde had descended the prices for their regional market.
Europe
Paraformaldehyde’s price increased this quarter in the European region with healthy purchasing and surging demand from downstream enterprises. As of late, an enormous Netherlands global organization declared that they were expanding their costs of disinfectants and adhesive industries. The demand for bulk purchases had grown with solid exports to Belgium and Germany. Flooding gas and feedstock costs in Europe caused an enormous climb in the spot, and agreement costs severe strength areas for feelings in the homegrown market. In the Netherlands, the price of Paraformaldehyde during June was USD 1134/ton (96% Paraformaldehyde) FOB Rotterdam. The demand for transportation fuel elevated drastically with accelerating freight costs.
For the Quarter Ending March 2022
North America
In Q1 2022, the price of Paraformaldehyde was noticed to be on the upper side with increasing demand from downstream wood sector. Soaring costs across the board on feelings of trepidation Russia-Ukraine struggle surged the costs of Methanol in the domestic market of USA. Feedstock methanol utilization in auto industry is additionally spotted to be on the higher side. Exports from Spain and Germany surged in this quarter with increase in the interest of Methanol as a fuel industry. Narrowing overall revenue were convincing producers to raise their offers, while temporary dullness opposed them from practicing continuous cost revision. Compared with previous quarter, the price of Paraformaldehyde surged by 6% compared with previous quarter. In January, the price of Paraformaldehyde were assessed at USD 1610/ton CFR Louisiana.
Asia Pacific
In China, the cost of Paraformaldehyde showcased a surge throughout the Q1 2022. On 1st February 2022, the costs were USD 878/ton CFR Shandong. After the Spring Festival, enterprises slowly restarted and resumed operation units, and downstream endeavours of paraformaldehyde started to buy consistently. The support of raw material Methanol was deficient which brought about cost climb. The production cost among the significant makers expanded with pressed profit and impacted sales of the producers. Chinese traders began purchasing the product in bulk which caused the producers to increase the price. Imports from Netherlands and Taiwan expanded with contracting supply influencing the cost pattern.
Europe
The prices of feedstock Methanol in the Netherlands rose since the high prices of upstream Natural gas in the country affected the regional market. The price hike of Natural gas in the Netherlands can be traced to the inflated prices of gas in the United States because they are the largest natural gas exporter to the country. The Netherlands imports natural gas largely from the US and Russia, and the ongoing war between Russia and Ukraine has made trade between Russia and Europe difficult. In Netherlands, the price of Paraformaldehyde towards the end of the quarter were observed to be USD 1088/ton FOB Rotterdam. Paraformaldehyde demand in Spain exhibited continuous growth in the past few months. The export trading market however remained robust with increase in demand from India and China.
For the Quarter Ending December 2021
North America
The prices of Paraformaldehyde declined in the North American Market during the fourth quarter of 2021, backed by depleting prices of formaldehyde. The price fall of formaldehyde was caused by the shrinking value of upstream methanol, owing to weak fuel demand and sluggish trend in industrial application. Furthermore, the reduction in formaldehyde prices was also supported by lesser downstream demand from automotive and construction industries. In addition, reduced imports to South America contributed towards the overflow of already full inventories. Moreover, ongoing festivities and New year holidays further impacted the demand. The prices of Formaldehyde were assessed to be at USD 650/MT in November 2021.
APAC
Asian market witnessed a fluctuating pricing trend of paraformaldehyde in Q4 2021, backed by unstable prices of formaldehyde. The prices of formaldehyde were soaring in the month of October, but then it started declining in November and December. Hike in natural gas prices leading towards augmented methanol prices caused the surge in prices during October, while insufficient downstream demand and overflowing inventories contributed towards the decrement in prices of formaldehyde. Conclusively, the prices of paraformaldehyde were assessed to be at USD 800/MT in the concluding month of the year.
Europe
In Europe, the prices of paraformaldehyde were on the lower side during the fourth quarter of fiscal year 2021, owing to declining prices of formaldehyde. The price decrease of formaldehyde was caused by adequate supply but weak demand from the downstream industries. Furthermore, reduced methanol prices, slumping trades, and weak demand from food and cosmetics industries were another factor contributing towards falling prices of formaldehyde, and eventually towards decrement in paraformaldehyde pricing trend. The prices of paraformaldehyde were evaluated to be at USD 690/MT the end of the year.
For the Quarter Ending September 2021
North America
The North America Paraformaldehyde market outlook remained modest during the third quarter of 2021. Prices witnessed an uptrend in Q3 owing to limited supplies of feedstock formaldehyde. Production from the gulf coast manufacturing sites had taken a hit during the hurricane season due to disruptions in the supply chain. Production had however, recovered during the closing weeks of Q3 easing up supply. Supply, however, is expected to underperform demand in the next quarter as soaring natural gas prices are likely to create energy mix imbalances for manufacturers across North America.
Asia
The Asian paraformaldehyde prices witnessed an uptrend in Q3 of 2021. A resurgent demand and lower production rates owing to the new dual energy consumption norms caused a steep rise in the prices of paraformaldehyde. Indian market too witnessed tight supplies due to increased logistic costs and supply chain bottlenecks as Indian paraformaldehyde market is import dominant with majority of the imports coming from China, Taiwan, and Spain. Congestion at several ports in China led to a delay in imports. Soaring freight charges further added to the upward pressure on the prices throughout Q3. Paraformaldehyde 96% CFR-JNPT prices settled at USD 926.91/MT in September, a significant increase compared to the June prices.
Europe
In Europe, the Paraformaldehyde market reported mixed sentiments during this quarter. The first half of Q3 witnessed a dip in the prices of Paraformaldehyde backed by ample supplies of feedstock formaldehyde. Demand from the downstream industries remained strong throughout the quarter. However, the prices of Paraformaldehyde witnessed an uptrend in H2 of Q3 due to supply chain bottlenecks caused by congestion at several ports of China due to strict Covid -19 containment protocol.
For the Quarter Ending June 2021
North America
Paraformaldehyde prices kept on rising across North America region backed by firm demand fundamentals amidst inadequate product availability. Despite of the abundant availability of feedstock Formaldehyde, price of Paraformaldehyde kept were on uptrend due to low production activities, However, the prices fluctuated with the feedstock availability during the month of April, while in May, steep rise was observed. In addition, due to other cheaper alternatives, the demand was running low, but the prices were rising majorly due to regional scarcity.
Asia
The Asian market reported firm sentiments for Paraformaldehyde during this quarter, bolstered by modest to high demand from the downstream sectors. Manufacturers in China were experiencing tremendous post pandemic growth, which was higher than any other country. Therefore, the demand from the domestic market was high from the downstream fertilizers and pesticides segment. While in India, demand remained dampened with the rise of second wave of pandemic in the country, that temporarily reduced the offtakes from the downstream manufacturers. However, the market scenario and price improved effectively during the month of June. The price of Paraformaldehyde settled at USD 796/MT towards the end of the quarter in India.
Europe
The European market reported stable momentum for Paraformaldehyde during this quarter, while the demand maintained stability from the specialised segments like resins and pesticides. The availability remained enough to satisfy all the end-use needs across the region. Therefore, no such changes were observed in the prices of Paraformaldehyde during this quarter. In addition, demand from other segments like disinfectant and preservatives remained low in major European countries.
For the Quarter Ending March 2020
North America
US winter storm narrowed the production of feedstock Methanol across the US Gulf during Q1 2021, as more than 80% plants across US gulf remained idled during this quarter. Thus, the supply of Methanol remained low from December while several downstream converters were reporting lower inventory level. Severe shortage of upstream Methanol, amid high demand from fuel sector supported its prices and eventually pushed up the prices of its derivative chemicals including Formaldehyde and Paraformaldehyde across the region. The average prices of Paraformaldehyde hovered around USD 980 per MT across the region.
Asia
In the Asian market, demand for Paraformaldehyde remained firm from its derivative industries like plastics and resins. In January, service sector and industrial activities witnessed improvement, and hence the demand from these sectors showed consistent revival. Meanwhile, upstream Methanol supply across the region remained low, which led the rise in its prices and that of its downstream derivatives including Formaldehyde and Paraformaldehyde. Meanwhile, CRI (Carbon recycling International) announced the launch of a new CO2 to methanol production plant at Anyang, China. This plant would recycle 160,000 MT of CO2 each year, and hence will ultimately improve the supply of upstream Methanol across the region.
Europe
In the European market, demand for Paraformaldehyde from the downstream sectors like resins and plastics market showed improvements, which left positive impact on market sentiments across the region. Meanwhile, Equinor’s major Methanol production unit in Norway, resumed operations after a prolonged shutdown from December 2020, after a major fire outbreak in the plant. This plant has a capacity of 900,000 MT/year and covers around 25% of the total Methanol production in Europe. Thus, the resumption is likely to improve the availability of upstream Methanol across the region and may halt the price acceleration.
For the Quarter Ending December 2020
Asia
In Q4 2020, China witnessed sharp recovery in industrial and domestic activities post significant revival from COVID 19. Market sentiments were up, with respect to high demand for upstream Methanol and feedstock Formaldehyde. However ample inventories of the product led to rise in its prices. In China, price of upstream Methanol fluctuated in between 260-280 USD per tonne, this rise came due to supply shortage of upstream Methanol from Iran amid winter. Meanwhile in Indian market, prices of Paraformaldehyde witnessed steep climb in line with values of feedstock Formaldehyde. The prices of feedstock Formaldehyde rose from 147.5 USD/tonne (October 2020) to 205.1 USD/tonne (December 2020) in India. This rise came after shortage of Formaldehyde due to multiple plant shutdowns in North India under government compliance, as these plants were allegedly running without proper environmental clearance.
Europe
During Q4 2020, European market faced shortage of several feedstock chemicals to produce downstream products. Supply of Paraformaldehyde was also disturbed amid the shortage of upstream Methanol. This shortage of Methanol occurred due to a fire accident in Equinor’s major methanol plant in Norway, which consolidates around 25% of the total methanol production of Europe. This plant has a huge capacity of 900,000 tonne/year of Methanol. This shortage consequently led to rise in prices of feedstock Formaldehyde, PFA, and other derivative products.
North America
Demand for PFA, Formaldehyde, and Methanol remained firm during Q4 2020, driven by the downstream demand from the Asian market with post recovery from COVID 19. Although the supply remained tight due to unplanned shutdowns and force majeure due to multiple hurricanes during the fourth quarter. Besides, the demand for PFA from domestic sector gradually improved in Q4 compared to the prior quarter which directly impacted its prices in the regional market.
