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.
For the Quarter Ending June 2024
North America
During Q2 2024, the Paraformaldehyde (PFA) market in North America witnessed a pronounced decrease in prices, influenced by several key factors. The market was predominantly affected by an oversupply scenario, coupled with weak demand from downstream industries such as adhesives and textiles. This imbalance between supply and demand led to significant downward pressure on PFA prices. Additionally, increased competition from international producers and the commencement of new production facilities exacerbated the oversupply issue, further straining the market.
In the USA, where the most substantial price changes were observed, the overall trend reflected a continuous decline in PFA prices. Seasonal factors also played a role, with reduced consumption patterns typically seen during the mid-year period. The correlation in price adjustments was evident, with a marked -33% change from the same quarter last year, underscoring the significant year-over-year drop. However, compared to the previous quarter in 2024, the prices remained stable, showing a 0% change. Despite this quarterly stability, the first half of Q2 experienced a slight downturn compared to the second half, with a recorded -2% change.
The persistent downward trend underscores the challenging market conditions, characterized by ample supply and lacklustre demand, ultimately leading to a bearish market sentiment. This scenario reflects the broader regional dynamics and encapsulates the significant influences driving the price trajectory in North America for Paraformaldehyde during Q2 2024.
APAC
The Paraformaldehyde (PFA) market in the APAC region experienced a notable upward trend in prices during Q2 2024. This quarter was marked by several critical factors that significantly influenced market prices. Firstly, robust demand from downstream industries, including adhesives and resins, coupled with constrained supply owing to production disruptions, drove prices higher. Additionally, increased production costs, primarily due to elevated feedstock methanol prices, further exacerbated the upward price pressure. Market participants also faced logistical challenges, contributing to higher freight costs and, consequently, elevated PFA prices. Furthermore, strategic stockpiling by key market players in anticipation of future demand spikes added to the price escalation. In India, the PFA market demonstrated the most pronounced price changes within the APAC region. The overall trend was bullish, driven by heightened demand from the adhesive sector and supply limitations. Seasonality played a role, with increased industrial activity in specific periods contributing to price volatility. The correlation between robust downstream demand and constrained supply was evident, resulting in a 2% increase compared to the same quarter last year and a substantial 5% rise from the previous quarter in 2024. Notably, prices surged by 4% between the first and second half of the quarter, reflecting a consistent increasing sentiment. Concluding the quarter, the price of Paraformaldehyde 96% in India underscored a positive pricing environment fuelled by strong market fundamentals and strategic purchasing behaviour. The overall market sentiment remained bullish, supported by sustained demand and supply constraints, signifying a favourable pricing trajectory for PFA in the APAC region.
Europe
In Q2 2024, the European Paraformaldehyde (PFA) market exhibited a consistent downward pricing trend. The quarter was marked by several significant factors that influenced market prices. Firstly, a persistent oversupply, compounded by subdued demand from key downstream sectors such as adhesives, textiles, and preservatives, exerted downward pressure on PFA prices. Economic uncertainties and geopolitical tensions further exacerbated market sentiment, leading to cautious purchasing behaviour and reduced bulk buying. Additionally, the feedstock Methanol market remained stable but provided weak cost support, failing to counterbalance the declining PFA prices.
In Germany, where the most pronounced price changes occurred, the overall trend mirrored the broader European market but with intensified effects. Seasonality contributed minimally, as demand remained lacklustre even during typically stronger periods. The correlation between supply glut and reduced industrial activities precipitated notable price declines. Compared to the same quarter last year, prices plummeted by 21%, reflecting the sustained negative pricing environment. From the previous quarter in 2024, prices declined by 2%, indicating a persistent but slightly moderated downward trend. The price comparison between the first and second halves of the quarter further demonstrated a marginal decline of 0.5%, reinforcing the bearish market sentiment. This consistent decrease underscores a negative pricing environment, driven primarily by oversupply and weak demand dynamics. The market outlook remains cautious, with little indication of imminent recovery in pricing.
For the Quarter Ending March 2024
North America
Q1 2024 has been a challenging quarter for Paraformaldehyde (PFA) pricing in the North America region, with significant factors contributing to a decrease in market prices. The overall trend has been negative, reflecting a decline of 35% compared to the same quarter last year. Several factors have influenced the decreasing prices of PFA.
Weak demand from downstream industries, such as the disinfectant and adhesive sectors, has limited market activity and impacted price dynamics. Additionally, ample supply and high inventories among major producers have contributed to the downward trend in prices. The price comparison between the first and second half of the quarter shows a minimal change of 1%, indicating relative stability in the market. However, the overall sentiment remains negative, with prices continuing to decline. In the USA, the largest price changes have been observed.
The quarter-ending price for Paraformaldehyde (PFA) in the USA stood at USD 1094/MT FOB Michigan. This reflects a consistent decreasing sentiment in the pricing environment for PFA in the country. In conclusion, Q1 2024 has seen a negative pricing environment for Paraformaldehyde (PFA) in the North America region, with decreasing prices influenced by weak demand, ample supply, and high inventories. The USA market has experienced the maximum price changes, reflecting the overall trend of declining prices.
APAC
The pricing environment for Paraformaldehyde (PFA) in the APAC region in Q1 2024 has been characterized by fluctuations and stability. Overall, there has been a downward trend in prices, influenced by factors such as low demand, ample supply, and weak market fundamentals. In the APAC region, the average production price of PFA remained subdued, leading to narrowed purchases based on immediate needs. In India, the pricing environment for PFA has seen significant changes. Prices have fluctuated and stabilized, driven by factors such as weak demand, excess inventory, and low market trades. The disinfectant and adhesive sectors, major consumers of PFA, have experienced low demand, further impacting the market. Comparing Q1 2024 to the same quarter last year, there has been a negative percentage change in prices, reflecting the challenging market conditions. Additionally, there has been a percentage change from the previous quarter in 2024, indicating a further decline in prices. Overall, the pricing environment for PFA in Q1 2024 has been negative, with prices experiencing fluctuations and a downward trend. The market has been characterized by low demand, excess supply, and weak market fundamentals. The latest quarter-ending price for 96% PFA in Taiwan was USD 711/MT FOB Taichung.
Europe
The Paraformaldehyde (PFA) market in the Europe region experienced a downward trend in prices during Q1 2024. This decline can be attributed to various factors, including subdued demand from downstream industries and an excess of supply in the market. The Netherlands, in particular, witnessed significant price changes during this quarter. The overall trend in prices for PFA in Europe showed a consistent decrease, with a negative correlation between supply and demand. In terms of seasonality, the first quarter of the year is typically a slower period for the PFA market, which contributed to the declining prices. Comparing Q1 2024 to the same quarter last year, there was a substantial decrease of 33% in prices. Additionally, prices declined by 14% when compared to the previous quarter in 2024. The price trend within Q1 2024 also showed a slight decline from the first half to the second half of the quarter, with a decrease of 2%. The quarter-ending price for PFA in the Netherlands was recorded at USD 591 per metric ton FOB Rotterdam. Overall, the pricing environment for PFA in the Europe region during Q1 2024 was negative, with prices experiencing a consistent decrease. This can be attributed to factors such as subdued demand, excess supply, and seasonal trends.
For the Quarter Ending December 2023
North America
In Q4 2023, the market trading fundamentals of Paraformaldehyde in North America witnessed a sluggish trading fundamental in the light of slow market offtakes and bearish exports of cargos from USA to the overseas market. The cut in the production rate among the downstream enterprises was witnessed due to the abundance of raw materials, which creates a stockpiling of products, impacting the price trend.
With weak demand in the American region, exports to Canada and other North American region were also affected. Order from the downstream preservative and adhesive industry remain weak due to a downtrend in purchasing activities. The cost support from the upstream Methanol market was flat and abundance of product availability kept the prices on the lower end.
In Dec 2023, the price trend of Paraformaldehyde in the USA declined to USD 1212/ton FOB Michigan. The discussions for spot cargoes, particularly at main ports, were muted as the region was amply supplied by term volumes for December. Instead, demand was seen lackluster where the existing inventories were consumed gradually with limited demand for the fresh stocks.
Asia Pacific region
In this quarter, deteriorating demand and sluggish market purchases had adversely affected the market purchases in the wake of limited price gain and limited fresh purchases. The Paraformaldehyde market was on the lower end due to insufficient cost support caused by declining downstream industry demand. In addition to falling energy prices and huge primary producer stocks, the market for feedstock Methanol was also slow. Inflows of Paraformaldehyde from Taiwanese and Spanish market plunged likewise as the market was well supplied with the product availability and slow market offtakes. Purchasing volumes of Paraformaldehyde in APAC were low even with sellers reducing prices this quarter. The demand for Paraformaldehyde from downstream disinfectant and adhesive industries plummets with no firmer bids and offers from the suppliers to the buyers, forcing the producers to lower their quotations for the Indian market. Methanol derivatives also witnessed a sluggish price pattern, and the market grapples a slow market offtake. In Dec, the price of Paraformaldehyde in India declined to USD 777/ton CFR JNPT.
Europe
Because of commodity traded to the European market, the regional Paraformaldehyde stockpile was sufficient. Because of the ample supply, the operating rate of production units remained influenced, forcing firms to cut their output constraints. This quarter's market trading fundamentals remained flat, and deals were held only when necessary. Reduced downstream demand continued, which negatively impacted the start of new business with disinfection producers and caused Paraformaldehyde to decrease on a quarterly basis. The downstream manufacturing sector's continually low demand for Paraformaldehyde was mostly attributed to continued inflationary pressures, the consistently muted global economy, and project delays. In Dec 2023, the price of Paraformaldehyde in Spain declined to USD 646/ton FOB Algeciras. Towards the end of the quarter, there was some potential for downside, most of the movement in Paraformaldehyde spot prices was sideways. Due to restricted requests for additional stock, paraformaldehyde exports from Spain to India and other European region remained restricted. Trades of Paraformaldehyde from Spain to India and other European region plunged as market fundamentals remain flat and market fails to maintain the price momentum.
For the Quarter Ending September 2023
North America
In Q3 2023, the price trend of Paraformaldehyde in the North American region plummets, with suppliers remaining open for the negotiation for discounts on bulk purchases. Disinfectant and adhesive downstream demand for Paraformaldehyde has shrunk following sufficient product availability and lower bidding for new stocks. Prices for Paraformaldehyde products have been revised by major producers for the domestic market. Traders said that the requirement for Paraformaldehyde has been slowing down and hit market dynamics coupled with uncertainty in regional economic growth. The high operating rate and rising port inventory harmed the producers' total revenue. To avoid additional buildup, Paraformaldehyde makers have reduced their endeavor's production pace. In terms of feedstock, Methanol prices slumped with slow market offtakes for the trading. In July 2023, the price of Paraformaldehyde in the USA declined to USD 1585/ton FOB Michigan. Exports of Paraformaldehyde from the United States to the North and South American markets were declining, and suppliers were giving bulk discounts.
Asia Pacific region
This quarter, the Paraformaldehyde market showcased a steady to higher price trend in July and Aug 2023, mainly attributed to tepid purchasing activities and a rebound in the trading activities from the downstream disinfection and textile industries. The unusually favorable reaction to the Taiwan major's August pricing thoughts was a big indicator of a shift in market dynamics. Prices have stopped declining further because of solid domestic demand and end-user enterprise offtake. A rise in spot conversations and larger bids and offers from suppliers resulted in such a pricing trend for Paraformaldehyde. In Aug 2023, the price of 96% Paraformaldehyde in Taiwan surged to USD 795/ton FOB Taichung. However, towards the end of the quarter, the market was well supplied with inventory level, and the demand from the downstream remained persistent with slow market offtakes. Commodity prices are likely to fall further in the Taiwanese market as a result of the ongoing struggle against weak demand and the lack of tougher bids and offers from major suppliers. The Asian Paraformaldehyde market is struggling with low product bidding fundamentals and economic turbulence.
Europe
When compared with the previous quarter, the price trend of Paraformaldehyde in Europe showcased a bearish market trend. Prices for Paraformaldehyde in the Netherlands declined as Methanol feedstock in the region plummeted. Nonetheless, sluggish market dynamics and ample product availability continue to be primary drivers of this pricing trend. The fundamentals of demand for Paraformaldehyde in the European market have deteriorated as trade within the area has fallen, with suppliers providing minimal cost assistance. Adequate stocks and an adequate supply of Paraformaldehyde in the immediate vicinity remain significant issues for businesses. Manufacturers lowered the quantity of ex-factory citation references for the feedstock Methanol due to the continuous increase in stockpiles. Even yet, lower-cost Paraformaldehyde futures push down bids, and downstream stock remains adequate. In Sept 2023, the price of 91% Paraformaldehyde in the Netherlands declined to USD 715/ton FOB Rotterdam. The paraformaldehyde market remains inhibited due to disruption in supply/demand fundamentals and deprived demand. The downstream adhesive and disinfection sectors continue to have low demand for Paraformaldehyde, with supply surpassing demand.
For the Quarter Ending June 2023
North America
When compared with the previous quarter, the Paraformaldehyde market in the North American market declined with the feeble trading fundamentals. In June 2023, the price of Paraformaldehyde in the US declined to USD 1622/ton FOB Michigan. The supply of Paraformaldehyde remains ample to meet the downstream market requirement along with lackluster downstream enterprises. Exports of Paraformaldehyde from the US to South America also remain feeble this quarter, with a negotiable price trend between the suppliers and buyers. Oversupply fear hangs over the North American market, and significant players showcase discounts on bulk purchases. The feedstock Methanol market was affected with no firmer offers and bids with the fear of a declining upstream Natural Gas market. In the downstream disinfectant and adhesive market, Paraformaldehyde demand remains weak, along with lower operating costs among enterprises. Market players in the US market remain skeptical regarding price increases for Paraformaldehyde due to the limited requirement for fresh stocks. The price showed a downward price correction due to the abundance of product supply and lackluster downstream demand in the region.
Asia Pacific
In Q2 2023, weak trading fundamentals and higher inventory levels declined the purchasing activities in the Asia Pacific region. In Taiwan, Paraformaldehyde prices remain on the lower side in the face of bearish regional demand and sufficient supplies. Sales of Paraformaldehyde from the locale to the Asian market remain extremely slow in the wake of a gradual increase in product inventories. Most suppliers have ample existing stocks and limited trading dynamics for fresh stock, resulting in bearish cost support. Taiwan had seen its lowest Paraformaldehyde offers from significant producers, with no firmer offers and weak purchasing appetite. The increase in supply, weaker demand, and limited requirement from the downstream ventures has dampened any opportunity for producers to increase prices in this quarter. Downstream disinfectant and adhesive ventures were working carefully per the end client's prerequisites. Paraformaldehyde benchmark prices were additionally weak this quarter as frail demand settled the costs at the lower end. In May 2023, the price of 96% Paraformaldehyde in Taiwan declined to USD 880/ton FOB Taichung.
Europe
This quarter, the Paraformaldehyde market in the European market slumped with low market fundamentals and lackluster purchasing activities. As demand remained subdued due to the region's adverse supply outlook, Paraformaldehyde markets began this quarter with a fresh round of price reductions. Prices fell below new thresholds because of market bearishness in the upstream and downstream sectors. Trades of Paraformaldehyde are still insufficient on the European market, and they were mostly made on an urgent basis. Several Paraformaldehyde producers extended lower rates in Germany, reflecting the fragile supply/demand fundamentals conditions. Most suppliers run at 60-65% rates while trimming rates further does not seem reasonable as it would not reduce fixed production costs. Exports of Paraformaldehyde from Germany to India and other European markets traded weak due to sufficient product availability in the region. With the quarter ending on June 2023, the price of 91% Paraformaldehyde in Germany declined to USD 732/ton FOB Hamburg. In terms of the feedstock market, Methanol prices ended up on a feeble note, with no firmer bids and offers from the suppliers to the end-user industries.
For the Quarter Ending March 2023
North America
In Q1 2023, the Paraformaldehyde price in the US surged in the first two months in the wake of continuous utilization of inventories and high purchasing activities. The demand for Paraformaldehyde from the downstream disinfectant and adhesive industries gradually increased with high demand from the end-user. Exports of Paraformaldehyde from the US to China and South America likewise increased with an increase in market trading fundamentals. In Feb 2023, the Paraformaldehyde in the US surged to USD 1747/ton FOB Michigan. However, the price trend started to follow a bearish price trend towards the end of the quarter amid lackluster demand. Significant US Paraformaldehyde producers slice their offers to South American business sectors with declining market fundamentals.
Asia-Pacific
This quarter, the Paraformaldehyde market in the Asia Pacific region remains slumped with limited trading activities and low traded volumes. Increasing production rates of Paraformaldehyde among significant enterprises led to a rise in supply and a decline in demand from the downstream ventures. In Taiwan, quotations from the significant production unit faced a downward trend and a feeble feedstock Methanol market. In March 2023, the price of Paraformaldehyde in Taiwan slipped to USD 958/ton (96% Paraformaldehyde FOB Taichung). With deteriorating demand from end users, the downstream adhesive and disinfectant industry remains flat, with trading activities on an immediate basis. Exports of Paraformaldehyde from Taiwan to South Korea and China also declined, and cargoes were traded at a negotiable rate to suppliers.
Europe
When compared with the previous quarter, the Paraformaldehyde price showcased a bearish market trend with high product inventories among the production units. Paraformaldehyde spot prices in Germany plunged, coupled with low utility costs, which has kept the price momentum weak. Paraformaldehyde availability was comfortable within the region, with limited demand from the downstream disinfectant industries. In March 2023, the price of Paraformaldehyde in Germany declined to USD 865/ton (91% Paraformaldehyde FOB Hamburg). The trading volume of Paraformaldehyde declined this week, and buyers remain reluctant to purchase cargoes in bulk. As a result of cautious trading and uncertain market conditions, March-loading cargo was offered at lower prices to attract buying interest from the suppliers.
For the Quarter Ending December 2022
North America
This quarter, the price of Paraformaldehyde in the US showcased a feeble price trend in the succeeding months. In Dec, the price of Paraformaldehyde in the USA declined to USD 1727/ton FOB Michigan. The price of Paraformaldehyde declined significantly with limited trading activity. The rising production rate among the enterprises and the declining feedstock Methanol market resulted in such a price trend. In terms of supply, sufficient inventories among the ports affected the Paraformaldehyde price trend, and concerns about the risk of regional economic recession remained. Profit margin and revenue among the major enterprises also declined with low purchasing and lower bidding for the new stock.
Asia Pacific
This quarter, the Paraformaldehyde market remains feeble under the influence of limited trading activities and lower product bidding in Taiwan. Most production enterprises focused on de-stocking, and downstream enterprises also had adequate inventories, resulting in weak overall demand performance. Taiwan has seen length build as volumes in the region continue to add to an overabundance of supply in the market. In Dec, the price of Paraformaldehyde in Taiwan slipped to USD 1014/ton (96% Paraformaldehyde) FOB Taichung. With ease in utility and energy costs, the production rate of Paraformaldehyde surged in the region, resulting in oversupplies. Export of Paraformaldehyde from Taiwan to other Asian regions remains feeble, and cargoes were traded as per the downstream requirement.
Europe
In Q4 2022, the Paraformaldehyde market declined with weak market fundamentals. Exports of Paraformaldehyde from Germany to other European regions and India remain feeble, and producers remain skeptical about increasing product prices. Due to adequate product supply and limited trading activities, Paraformaldehyde prices in Germany ended up on a weaker note. To deplete their inventory surplus, producers offered discounts on bulk purchases. In Dec, the price of Paraformaldehyde in Germany slipped to USD 885/ton (91% Paraformaldehyde) FOB Hamburg. Because of falling interest costs and low buying activities, the downstream business was generally quelled. The end-user disinfectant and adhesive industry worked their plant carefully as per their prerequisites.
For the Quarter Ending September 2022
North America
In the USA, the price trend of Paraformaldehyde in Q3 2022 ended on a mixed note. In July, the market of Paraformaldehyde elevated to the top of high demand and limited regional product availability. In terms of the feedstock market, Methanol prices also surged with healthy demand from the downstream market along with high energy and Naphtha values. In July, the cost of Paraformaldehyde in the USA surged to USD 1931/ton FOB Michigan. However, due to sufficient product availability, Paraformaldehyde prices declined. The general drop in costs, notwithstanding high inflation, was for various reasons, including more vulnerable interest because of significant expenses, a sharp decrease in global oil costs, and the suspension of taxes on fuel.
Asia Pacific
Paraformaldehyde prices slide further as traders lose confidence in demand recovery and continue short-selling their products this quarter. Suppliers are cornering their side to buy Paraformaldehyde in large volume or at higher prices, as their subsequent purchases will likely be at a lower cost. In Sept, the price of Paraformaldehyde in India slipped to USD 1175/tonne Ex-Mumbai. With deterred feedstock Methanol prices in the region, market dynamics of Paraformaldehyde also tumbled. Inventories among the ports surged with limited bidding for new stocks. Buyers underlined that ample incoming supplies and overflowing inventory levels might keep domestic ex-tank discussions under pressure
Europe
In Q3 2022, the price of Paraformaldehyde in the European region surged for consecutive months in the wake of elevated upstream Natural gas and Methanol values. Local producers likewise revised their Paraformaldehyde costs incited by continuous purchasing and strong demand for new stock. The need for Paraformaldehyde from downstream plywood and adhesive industries. In Spain, the price of Paraformaldehyde during Sept surged to USD 1199/ton FOB Algeciras. With rising Paraformaldehyde costs and electricity taxes, Europe's adhesive industry surged with sound utilization from the end users. Significant interest from the European region extended the usage of Paraformaldehyde, yet restricted accessibility is contracting the sales and profit of the enterprises.
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
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.
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.
