For the Quarter Ending December 2024
North America
In Q4 2024, the formaldehyde market in North America witnessed a steady upward trajectory, reflecting an 8.9% quarter-on-quarter increase. The primary drivers of this surge were the rising demand from the automotive and construction sectors, both of which showed notable recovery after previous slowdowns.
Increased automotive production, driven by higher consumer demand and the need to clear elevated inventories, contributed to the greater consumption of formaldehyde for adhesives and composite materials. Additionally, demand from the textile sector remained strong, bolstered by improved market conditions, and increased cotton imports. Despite these positive demand factors, the market was also influenced by supply-side challenges, particularly related to rising feedstock costs.
Methanol prices, a crucial input for formaldehyde production, remained stable but posed upward pressure on production costs, which in turn pushed formaldehyde prices higher. The overall market was also affected by logistical disruptions and the delayed production plans of OPEC+ countries, which tightened supply and further supported price increases. As Q4 progressed, however, price stability was achieved by the end of December, driven by balanced supply and demand dynamics despite fluctuating production costs.
APAC
In Q4 2024, the formaldehyde market in the APAC region, particularly in China, experienced a slight quarter-on-quarter decrease of 0.8%. This decline was largely attributed to subdued demand from key downstream sectors such as construction and textiles. The construction sector showed weak performance due to reduced activity and stagnant new orders, while the textile sector faced challenges from high inventory levels and weak export demand. These slowdowns were compounded by fluctuating weather conditions and seasonal demand patterns, which led to cautious buying behaviour and contributed to a generally weak market sentiment. However, despite these challenges, the formaldehyde market in China maintained a degree of stability. Supply levels were consistent, with domestic production sufficiently meeting demand, and no significant disruptions were reported in the manufacturing process. The decline in methanol prices, a crucial feedstock, helped reduce production costs, providing some relief to manufacturers. At the same time, logistical disruptions, such as shipping delays due to global port congestion and adverse weather events, had a minimal impact on local supply chains. Overall, while demand remained moderate, the balance between supply and production helped sustain price stability, although the market experienced minimal growth during the quarter.
Europe
In Q4 2024, the formaldehyde market in Europe, particularly in Germany, experienced a quarter-on-quarter increase of 9.0%. This growth was primarily driven by a combination of rising feedstock costs and moderate demand from key downstream sectors such as automotive, construction, and chemicals. Throughout the quarter, formaldehyde prices saw incremental increases, particularly as methanol and natural gas prices rose due to supply concerns in Europe. The impact of higher feedstock costs placed upward pressure on formaldehyde production costs, prompting some price hikes in the market. Despite these increased costs, formaldehyde producers managed to maintain stable supply levels, meeting demand from critical industries. The automotive sector saw a steady increase in new passenger car registrations, driving demand for formaldehyde-based resins and adhesives. Meanwhile, the construction sector faced challenges due to broader economic uncertainty and rising borrowing costs, which moderated its demand for formaldehyde-based materials. However, supply chain disruptions and logistical challenges, coupled with energy cost concerns, created an atmosphere of cautious optimism in the market. These dynamics, along with strong production in certain sectors, helped sustain formaldehyde prices and contribute to a modest quarter-on-quarter price increase during Q4 2024.
For the Quarter Ending September 2024
North America
In Q3 2024, the Formaldehyde market in North America witnessed a notable uptrend in prices. Various factors contributed to this price surge, including stable demand from downstream sectors, particularly in construction and automotive industries. The market also saw a moderate supply, with producers adjusting operations to meet consistent demand levels. Additionally, global supply chain disruptions and increased feedstock prices played a role in pushing Formaldehyde prices higher.
Within the USA, the market experienced the most significant price changes. The quarter saw a 34% increase compared to the same period last year, indicating substantial growth. From the previous quarter in 2024, prices rose by 3%, showing a steady upwards trajectory. A slight price increase of 1% was observed between the first and second half of the quarter, highlighting a consistent positive trend in pricing.
The latest quarter-ending price of USD 585/MT of Formaldehyde FOB Texas in the USA reflects the overall positive pricing environment, characterized by increasing prices and stable demand-supply dynamics.
APAC
Formaldehyde pricing in the APAC Region during Q3 2024 witnessed a significant decline, primarily influenced by several key factors. Sluggish demand from downstream industries, particularly in the automotive and construction sectors, contributed to the downward pressure on prices. The stable supply of formaldehyde coupled with low demand resulted in a balanced market situation, leading to price decreases. Additionally, the decrease in feedstock methanol prices further impacted formaldehyde pricing in the region. In China specifically, the market experienced the most substantial price changes during this quarter. The overall trends in the formaldehyde market in China exhibited a negative sentiment, with a notable -6% decrease from the same quarter last year. The recorded -2% change from the previous quarter in 2024 highlighted the ongoing downward trend. Moreover, the price comparison between the first and second half of the quarter revealed a significant -4% decrease. The quarter-ending price of USD 153/MT of Formaldehyde (37%) Ex-Shandong in China reflected the prevailing decreasing pricing environment, indicating a challenging period for formaldehyde producers and suppliers in the region.
Europe
In the third quarter of 2024, the European Formaldehyde market experienced a generally positive price trend, driven by several key factors. The stability in feedstock methanol costs, along with balanced supply and demand dynamics, contributed to a gradual increase in formaldehyde prices. Steady demand from downstream industries, particularly in construction and automotive sectors, further supported this upward movement. Additionally, increased market activity and reduced inventories played a crucial role in pushing prices higher. The Netherlands emerged as a significant influence in this price trend, reflecting the most substantial changes in the region. Although there was a -3% change compared to the same quarter last year, the quarter-on-quarter change remained stable at 0%, indicating a stabilizing market. Notably, there was a 2% increase in prices between the first and second halves of the quarter, showcasing a positive shift in market sentiment. By the end of the quarter, the recorded price for Formaldehyde reached USD 506/MT FOB-Rotterdam in the Netherlands. This figure highlights the positive sentiment within the pricing environment and reflects a steady upward trajectory in formaldehyde prices amid favourable market conditions
MEA
In the third quarter of 2024, the Formaldehyde market in the MEA region experienced a significant upward trend in pricing, particularly in Saudi Arabia. This increase can be attributed to a combination of factors that have driven market prices higher. Strong demand from essential sectors such as construction and automotive, along with supply constraints and rising feedstock methanol costs, have been the primary catalysts for this price surge. Additionally, geopolitical tensions and uncertainties in the Middle East have further contributed to the upward pressure on prices. Saudi Arabia has seen the most pronounced changes in Formaldehyde pricing dynamics during this quarter. There was a 2% increase in prices from the first half to the second half of the quarter, indicating a strengthening market sentiment. However, despite a significant -39% decline compared to the same quarter last year and a -7% decrease from the previous quarter in 2024, the latest recorded price reached USD 215/MT for Formaldehyde Ex-Jeddah in Saudi Arabia. This consistent price growth underscores a positive pricing environment characterized by robust demand-supply fundamentals and increasing market dynamics. The combination of strong sector demand and supply limitations reflects an evolving landscape that stakeholders must navigate to capitalize on emerging opportunities within the Formaldehyde market.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been predominantly positive for Formaldehyde pricing in the North American region. Multiple factors have contributed to the surge in market prices during April 2024, including high Methanol feedstock prices, an uptick in domestic and overseas purchasing activities, and a significant reduction in regional inventories. Insufficient product availability created a supply-demand imbalance, compelling producers to revise their prices upward. Additionally, increased exports to Canada and South America further tightened the supply chain, adding upward pressure on prices.
Focusing on the USA, which witnessed the most substantial price changes, the overall trend has been characterized by robust demand amidst constrained supply. Seasonality played a role, with higher activities in production and procurement during this quarter.
The formaldehyde market experienced a 37% increase compared to the same quarter last year, marking a significant year-over-year growth attributed to heightened trading fundamentals and increased operational costs among producers. From the previous quarter in 2024, prices surged by 29%, reflecting an escalating cost environment and a bullish demand outlook.
APAC
In Q2 2024, the Formaldehyde market in the APAC region exhibited a notable upward trend in prices, driven by a confluence of significant factors. The quarter was marked by escalating production costs, primarily fueled by rising feedstock methanol prices and increased utility expenses during May 2024. Supply constraints further exacerbated the situation, with major production units grappling to meet the robust demand from key downstream sectors such as adhesives, resins, and textiles. These sectors demonstrated an amplified purchasing behavior, bolstered by seasonal upticks and strategic inventory restocking ahead of anticipated off-seasons. Market sentiment was also influenced by geopolitical tensions, which disrupted supply chains and led to speculative trading activities, contributing to the overall price hike during June 2024. Focusing on China, the country experienced the highest price fluctuations within the region. The Chinese market saw a 9% increase in Formaldehyde prices compared to the same quarter last year and a 3% rise from the previous quarter in 2024. Seasonal demand variations played a crucial role, with peak manufacturing periods intensifying procurement activities, thereby pushing prices higher.
Europe
The second quarter of 2024 has witnessed a notable decline in Formaldehyde prices across the European region, driven by multiple interrelated factors. The downturn in prices has primarily been influenced by weak market fundamentals, characterized by oversupply and subdued demand from key downstream industries such as adhesives and textiles. Elevated inventory levels have exacerbated the market's fragility, leading to limited trading activities and cautious purchasing behaviors among end-users. Despite, fluctuating methanol prices, the principal feedstock for Formaldehyde, provided insufficient support to decrease Formaldehyde prices. Focusing on Germany, the region experienced the most significant price changes, reflecting broader market trends. The overall trend for Formaldehyde pricing in Germany has been predominantly negative, influenced by seasonal factors and weak industrial demand. When evaluating the percentage change from the previous quarter in 2024, a more substantial decrease of 4% is evident, highlighting the growing market pressures. The pricing environment this quarter has been decidedly negative, marked by persistent oversupply, declining demand, and an overall bearish sentiment undermining any potential price recovery efforts.
MEA
During Q2 2024, the Formaldehyde market in the MEA region experienced a pronounced downturn in pricing, reflecting a consistent negative sentiment. Various factors contributed to this decline, including oversupply, weakened demand from downstream industries such as textiles, and subdued global trading activity during April 2024. Additionally, economic uncertainties and high interest rates further suppressed purchasing power and market confidence, leading to reduced trading volumes. These dynamics were exacerbated by the absence of significant supply disruptions, leaving inventories at elevated levels. Focusing on Saudi Arabia, which witnessed the most significant price fluctuations, the overall trend was markedly bearish during May 2024. The formaldehyde prices experienced a substantial drop due to a combination of high inventory levels and low demand from key sectors. Seasonal factors, such as the Ramadan period, further dampened both local and regional trading activities during June 2024. The correlation between crude oil prices and formaldehyde was also evident, as fluctuating oil prices impacted production costs and market sentiment.
For the Quarter Ending March 2024
North America
During Q1 2024, the formaldehyde market in North America experienced a notable improvement compared to the previous quarter. The demand for formaldehyde increased, leading to a reduction in the ample supply that had kept prices low in Q4 2023. Market sentiment improved as purchasing activities picked up, and there was a moderate to high demand from the downstream adhesive and disinfectant industries.
The factors that influenced the market during this quarter included a decrease in production costs and stabilization in the feedstock methanol prices. These factors contributed to the positive growth in the market, as suppliers were able to offer competitive prices to meet the rising demand. The USA, being the major producer and consumer of formaldehyde, witnessed a boost in export orders as inventories among most suppliers decreased.
The region's formaldehyde prices experienced an elevation with the price trend of USD 458/MT FOB Texas. There were some incidents of shutdowns reported during the quarter, but they did not significantly impact the overall market. One such example was the temporary halt of operations at Foremark Performance Chemicals in Texas due to extreme weather conditions. However, the duration of the shutdown was not disclosed, suggesting that it had minimal impact on the market.
Asia Pacific
During the first quarter of 2024, the APAC region experienced a bearish market sentiment for formaldehyde pricing. The sluggish demand and high supply were the main factors contributing to this situation. The decline in demand from downstream sheet metal factories during the holiday season played a significant role in the lackluster demand. Additionally, downstream plate factories also exhibited sluggish demand and consumption, putting more pressure on formaldehyde manufacturers to ship their products and limiting market expansion. On the supply side, there was an adequate amount of Formaldehyde to meet domestic requirements. However, buyers had to accept higher prices due to limited availability, leading to restricted purchases at elevated prices. Although there is expected improvement in traditional downstream demand, the overall formaldehyde demand in the Asian market has narrowed due to slow purchasing parameters. This has dimmed hopes for a quick recovery in the region. The resumption of work at downstream board factories following the Spring Festival was lackluster, resulting in a subdued atmosphere for on-site negotiations and sluggish activity in the formaldehyde market.
Europe
During the first quarter of 2024, the Formaldehyde market in Europe encountered difficulties primarily attributed to weak market fundamentals and a decline in demand from downstream industries. This resulted in an oversupply of products and cautious operations by downstream enterprises, leading to a decrease in prices. In an effort to revive the market, suppliers in the Netherlands offered attractive deals, but the market remained bearish due to slow demand recovery and supply pressure. Germany experienced a significant price decline of 13% compared to the previous year and 9% compared to the previous quarter. By the end of the quarter, the price of Formaldehyde CFR-Hamburg in Germany stood at USD 515/MT. The market situation remained bearish due to reduced purchases among enterprises and low demand in the downstream disinfectant industries. Despite these challenges, there were no plant shutdowns reported in Europe. Despite the disruptions, the market witnessed a slight increase in prices. In conclusion, the Formaldehyde market in Europe faced a challenging quarter driven by weak demand and high inventories, resulting in a bearish market situation.
MEA
In the first quarter of 2024, the Formaldehyde market in the MEA region continued to experience a bearish trend. This was primarily due to sluggish demand from downstream enterprises and an abundance of product availability in the domestic market. The global economic slowdown also contributed to the decline in petrochemical demand, further impacting the market trends. Saudi Arabia, being a major producer of Formaldehyde, faced a surplus of supply as a result of decreased demand. This led to an accumulation of inventories and a significant 32% decline in prices compared to the previous quarter. Low purchasing activities, plunging market sentiments, and high production costs were the main contributors to the price decline. Despite these challenges, the market fundamentals in Saudi Arabia remained stable, with no major disruptions in supply and demand. As a result, the current quarter-ending price of Formaldehyde Ex-Jeddah in Saudi Arabia stands at USD 250/MT. Overall, the Formaldehyde market in the MEA region continues to be bearish due to weak demand and ample product availability. However, certain disruptions in specific areas have led to increased prices.
