As we know, melamine and formaldehyde are important raw materials for Melamine Molding Compound.
The downward trend of mainstream market formaldehyde prices is obvious in April.
During April, the market price of formaldehyde fluctuated and moved down.
1. In the first half of the year, the downstream demand performance was average, and some regional markets lacked the capacity, and the overall trading situation was average.
2. In the middle of the year, the demand side was still weak, but the supply side was abundant, sellers were actively shipping, and the price focus fell.
3. In the middle of the month, due to the upward boost of the cost side, the market mentality has improved, and the price focus has been stable and upward in a short period of time. However, the demand side has not improved significantly, and there is a negative effect of the decline in raw material costs in the second half of the year, and the price center of formaldehyde market is still oscillating downward.
As the single raw material of formaldehyde, methanol occupies a major position in the cost composition of formaldehyde. The trend of the two shows a high positive correlation, and the price of formaldehyde is more sensitive to changes in the price of raw materials.
In April, the domestic methanol market fluctuated downward, the cost-side guidance was bearish, the market was bearish about the market outlook, and sellers' offers followed down. With the decline in formaldehyde prices, the profit margin declined year-on-year.
Huafu Chemicals expects the formaldehyde market to fluctuate weakly in May. The supply side is abundant, but the downstream may maintain rigid demand, and the supply and demand side will continue to compete, while the raw material methanol market is expected to fluctuate weakly, and the cost side also lacks support.
On the whole, if there is no positive boost, it is expected that the formaldehyde market will fluctuate weakly in May. Referring to the historical operating rules, the market is in a seasonal off-season from June to July, and the price center of gravity may fluctuate and decline.
Post time: May-07-2022