For the Quarter Ending June 2025
North America
• The paraformaldehyde Spot Price in North America increased by 8.3% quarter-over-quarter in Q2 2025, reflected in a bullish Price Index.
• The Price Index for paraformaldehyde in the US showed consistent upward momentum throughout Q2, supported by steady demand and intermittent supply challenges.
• Strong demand from the agrochemical sector during the spring application season remained a key driver of market activity, particularly amid weather-related delays that extended usage timelines.
• Supply chain disruptions, including historic flooding and adverse weather conditions, led to logistical bottlenecks and longer delivery lead times, sustaining firm Price Index levels.
• Although feedstock formaldehyde prices remained largely unchanged for most of the quarter, a rise toward the end of June led to higher production costs, prompting suppliers to raise their Price Index quotations.
• The market sentiment remained bullish overall, supported by a cautious yet steady approach to procurement by buyers and limited product availability throughout the quarter.
Why did the price of Paraformaldehyde change in July 2025 in North America?
• The end of the plantation season reduced demand from the agrochemical sector, which had previously been a major driver of paraformaldehyde consumption.
• With no seasonal demand support, downstream buyers became less active in the market, leading to a slowdown in procurement.
• The sustained increase in the Price Index over previous months raised affordability concerns among end-users, pressuring suppliers to revise their pricing strategies.
• In response to declining demand and buyer resistance to elevated prices, suppliers began adjusting their quotations downward, initiating a slight decline in prices.
APAC
• The paraformaldehyde Spot Price in APAC increased by 1.68% quarter-over-quarter in Q2 2025, reflected in a bullish Price Index.
• In the second quarter, the paraformaldehyde market in APAC showed a steadily bullish trend in the Price Index.
• The early part of the quarter was marked by market stability, supported by a balanced supply-demand scenario and consistent procurement from the agrochemical and construction sectors during the mid-crop season.
• A rise in the Price Index occurred in May due to increased demand from domestic and regional buyers, following the conclusion of national holidays and the onset of the plantation season.
• Seasonal factors, including the peak plantation period, led to sustained buying momentum and consistent consumption, supporting a firm market outlook.
• The market maintained this upward trend through June, with suppliers holding firm on their quotations due to stable input costs, uninterrupted logistics, and sufficient inventory levels, along with the consistent demand from the downstream agrochemical sector reflecting continued confidence in the overall Price Index movement.
Why did the price of Paraformaldehyde change in July 2025 in Asia?
• Prices of paraformaldehyde in Asia remained unchanged in July 2025 due to balanced supply and demand, with suppliers adequately meeting routine downstream requirements.
• Steady consumption from the agrochemical sector, during the plantation season, sustained consistent order volumes without prompting price changes.
• With no major fluctuations in raw material costs or external market influences, suppliers maintained their quotations, contributing to a calm and steady price trend.
Europe
• The paraformaldehyde market in Germany displayed a strong bullish trend throughout Q2 2025, driven by elevated upstream production costs and increased downstream demand.
• Rising demand from the agrochemical sector during the peak plantation season significantly supported the upward movement in the price index.
• Initial supply chain disruptions, particularly along the Rhine River due to low water levels, increased transportation costs and tightened availability, further lifting market sentiments.
• As water levels improved by May, logistical efficiency was restored, but strong procurement activity kept the price index elevated.
• Trading volumes and production levels increased in response to pre-season demand from the paints and coatings sector and consistent agrochemical sector consumption.
• In June, although the plantation season ended and demand moderated, stable production costs and balanced inventory levels maintained a firm market tone initially.
• However, by late June, a decline in formaldehyde costs and weakening agrochemical demand led to a slight correction in the price index, softening the bullish momentum.
Why did the price of Paraformaldehyde change in July 2025 in Europe?
• The paraformaldehyde market in Europe experienced a slight decline in prices during July 2025 due to a combination of seasonal and cost-related factors.
• A slowdown in market activity, typical of the summer holiday season, led to reduced trading volumes and limited buyer engagement.
• Feedstock formaldehyde prices declined, lowering production costs and prompting suppliers to adjust their ex-quotations downward.
• With sufficient inventories and moderate demand from the agrochemical sector, suppliers focused on inventory management rather than pursuing aggressive sales strategies.
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.
FAQs
1. What are the primary industrial applications of paraformaldehyde?
Paraformaldehyde is widely used in the production of resins, agrochemicals, disinfectants, and as a fixative in laboratories. Its polymerized form of formaldehyde makes it suitable for controlled-release formulations in agricultural and chemical manufacturing processes.
2. How is paraformaldehyde typically stored and handled?
Paraformaldehyde should be stored in a cool, dry, and well-ventilated area away from sources of ignition and moisture. It must be handled with appropriate personal protective equipment (PPE) due to its toxic and potentially irritating properties.
3. What is the difference between paraformaldehyde and formaldehyde?
Paraformaldehyde is a solid polymer of formaldehyde, often used as a safer, more stable alternative for handling and storage. When heated or dissolved, it depolymerizes to release formaldehyde gas for use in various applications.
4. Which downstream industries drive the demand for paraformaldehyde?
Major downstream consumers include the agrochemical, pharmaceutical, construction, and resin industries, particularly for products like herbicides, thermosetting resins, and coatings.
