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On June 3, the price of formaldehyde fell by 2% from the previous day, becoming the highest decliner of the day. Second chemical products. Since then, the formaldehyde market has been mainly falling, with an overall decline of more than 4.7% since June.
intrinsically weak raw material prices are running weakly, and the downstream environmental rectification is further deepened, the formaldehyde market will be under greater pressure, and the downward trend may continue.
From the perspective of the market outlook, the fundamentals of methanol are still weak, mainly due to the increase in the later supply. After late May, early domestic maintenance equipment gradually resumed operation. At the end of May, the operating rate of domestic methanol companies increased to about 70%, which is already at a relatively high level. In June, Inner Mongolia Xinao, Northwest Energy, Gansu Huating, Shaanxi Coal Chemical and other units resumed operation, and the methanol operating rate is expected to increase. In addition, in the later period, the traditional downstream industry has entered the off-season, and some coal-to-olefin units have been shut down for maintenance. The methanol market is more likely to be weak and fluctuate, making it difficult to form cost support for formaldehyde.
From the perspective of downstream, with the further deepening of environmental rectification, the main downstream artificial board industry needs of formaldehyde will also shrink.
“The operating rate of the artificial panel industry has not been high recently. In addition to seasonal factors, the most important factor is the Due to the impact of environmental remediation, all plate factories in some places have stopped production.” said Guo Yong’an, general manager of Guangxi Tuowei Chemical Co., Ltd.
The Ministry of Ecology and Environment recently announced that from June 2018 to April 2019, strengthened supervision of air pollution prevention and control will be carried out in key areas, and 200 “2+26” cities will be overall arranged Inspection teams on the left and right. “This has a greater impact on the panel industry. Panel production is prone to producing dust and volatile organic compounds (VOCs), which will affect air quality, so the panel industry will become the focus of rectification.” Guo Yong’an said.
According to a dealer in Shandong, there are currently 4,720 sheet metal companies in Linyi, my country’s main sheet metal production base, of which more than 3,000 have no environmental protection procedures and most of them have no pollution control facilities. Recently, there has been an environmental storm in the local area. It is required that rectifications be completed by the end of October this year, and all enterprises that fail to meet the standards will be shut down.
Another large plate production base, Jiangsu Province, Jiangsu Province, due to local ozone concentration control, it also brings a wave of production suspension. The city’s Air Pollution Prevention and Control Headquarters issued the “Emergency Notice on Strengthening Emergency Management and Control of Ozone Pollution”, requiring all plywood and other manufacturing companies in the city to suspend production from June 8 to 12 to minimize VOCs emissions.
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