In the first half of 2025, formalin prices showed a generally stable to slightly upward trend across key markets, influenced by steady demand and varying regional supply conditions. In Asia, particularly India and China, prices remained relatively firm. Early in the year, a dip was seen in China due to seasonal slowdowns from the Lunar New Year and weak demand in construction and automotive sectors.
However, prices recovered gradually by March as industrial demand improved, especially for resins and adhesives, supported by policy pushes like electric vehicle incentives. In India, consistent construction activity and growing downstream resin requirements kept formalin demand strong. Although regional supply fluctuations occasionally affected the market, prices remained fairly steady.
In Europe, formalin prices moved upward more strongly, driven by tight supply and high input costs. Disruptions in early Q1, such as strikes and raw material shortages, added pressure, while energy prices pushed production costs higher. Despite slowdowns in traditional sectors like construction, demand from industrial users of resins helped keep the market balanced.
In North America, prices also increased steadily. Weather-related disruptions and unexpected plant shutdowns in Q1 limited supply, even as methanol prices softened. Demand stayed healthy, especially from automotive and industrial coating sectors, supporting a bullish pricing environment through the first half of the year.
