Prices of Formaldehyde Witnessed an Uptrend in Asia During December 2023

The prices of formaldehyde exhibited fluctuating prices ending with an uptick during the month of December 2023. The demand obtained from the downstream industries, along with the rising prices of methanol (feedstock for formaldehyde), contributed to the positive sentiment in the Asian market during this period. An analysis by the Procurement Resource reports a m-o-m hike of approximately 1.12% in the prices of formaldehyde in India during the period.

Formaldehyde Prices Fluctuated and Declined During November 2023

The prices of formaldehyde remained fluctuating throughout the month of November 2023. Initially, the prices of formaldehyde remained oscillating amid varying demands acquired from the downstream industries. Later, the stable market prices supported by good sales for methanol together created a positive sentiment, boosting the prices of formaldehyde as well.

However, rising environmental concerns in the Chinese provinces impacted the demand and sales of formaldehyde during the final weeks of November. Additionally, the rise and fall in the methanol market (feedstock for formaldehyde) due to the production hike and varying demand from the downstream industries together impacted the costs of formaldehyde and lowered it in Asia during the end of November.

Prices of Formaldehyde Were Unstable Throughout December 2023

Initially, the prices for formaldehyde were stable during December 2023. In the mid-December period, an increase in the demand for methanol amid cold climatic conditions led to an uptick in the prices for methanol in Asia. This uptick directly had a positive impact on the prices of formaldehyde, as well. However, the decline in the consumption of high-priced coal, a feedstock used for methanol, led to a reduction in the demand for methanol. This resulted in a slight contraction in the methanol as well as formaldehyde prices during the final weeks of December 2023. However, the overall condition of low supply for formaldehyde, amid stable demand helped in maintaining a fine momentum in the market throughout December.

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China Plans to Produce Over Half of the World’s Green-Fuel Ships by 2025

China, a major energy producer, had set goals to build more than half of the world’s green-fueled ships by the year 2025. This initiative will focus on building ships that are powered by low-carbon emitting fuels such as natural gas and methanol. The project is expected to amplify the demand for methanol, which is a chief component used for the production of formaldehyde on a large scale.

According to Procurement Resource, the prices for formaldehyde remained unstable throughout the month of December, exhibiting an overall m-o-m increase of approximately 1.12% in India. The instability in the demand-supply chain exhibited a mixed market sentiment during December 2023.