Formaldehyde prices fluctuated lower

　　Since March, the price of formaldehyde has begun to fluctuate and fall, from 1,465 yuan (ton price, the same below) in early March to 1,300 yuan on June 10, a drop of 11.
3%
.

　　The price of formaldehyde is falling.
According to industry analysts, there are two main reasons.
First, it is affected by the decline in the price of raw material methanol
.
Although oil and coal prices remain high, the international methanol price is relatively low and the import volume is relatively large, which suppresses the domestic methanol price
.
This has led to the fact that methanol prices have fallen instead of rising since March, and have continued to decline
.
According to the monitoring data of the business agency, the domestic methanol price was 3,145 yuan in mid-March, and the methanol price began to drop sharply in April, with a monthly drop of more than 200 yuan; after May, the price began to fluctuate slightly; by mid-June, the methanol price was 2,658 yuan.

.
In 3 months, methanol has fallen by 15.
4%
.
As methanol is the main raw material for formaldehyde production, the price of methanol falls, which reduces the production cost of formaldehyde and boosts its price
.

　　Second, the downstream demand for formaldehyde is poor
.
Formaldehyde is mainly used in the production of wood-based panels.
Due to factors such as the epidemic, the entire panel industry chain is relatively sluggish
.
International futures prices show that the price of lumber futures for July delivery has now fallen to US$653 per thousand board feet, which has dropped by about 51% from the high of US$1,336 at the end of February this year, and the price has halved
.
The operating rate of domestic sheet metal enterprises is not high, and the demand for formaldehyde is flat
.

　　On the whole, it is expected that the contradiction between methanol supply and demand will still exist in June, and the overall market will be weak and the probability of lowering may be greater
.
From the perspective of demand, due to the increase in temperature and rainy weather after June, the demand for sheet metal will gradually enter the seasonal off-season, and the operating rate of sheet metal enterprises may further decline
.
Under the double pressure, the market outlook of formaldehyde is not optimistic
.
However, due to the large price decline, there is not much room for continued decline.
In the future, it is expected that formaldehyde is likely to consolidate weakly and fluctuate slightly.
It is necessary to focus on the trend of the upstream methanol market
.