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June 27th, 2025

Formaldehyde Prices Index: Trend, Chart, News, Graph, Demand, Forecast

In the first quarter of 2025, the U.S. formaldehyde market exhibited a largely bullish price trajectory, propelled by restricted supply conditions and steady demand from vital downstream industries. Prices opened the quarter around USD 661 per metric ton FOB Texas and climbed consistently, influenced early on by uncertainty stemming from the EPA’s finalized risk evaluation under the Toxic Substances Control Act (TSCA), which fostered caution among producers and encouraged a conservative market stance. In February, formaldehyde prices surged further, even as methanol feedstock prices trended downward, as persistent supply limitations and robust demand—especially from the automotive sector—continued to support higher price levels.

This tightness in supply was exacerbated in March when unplanned shutdowns hit major production units operated by Foremark Performance Chemicals and Momentive Specialty Chemicals, significantly constricting domestic availability and amplifying upward price pressure. By late March, prices had increased by approximately 25% compared to the start of the quarter. The construction industry provided mixed demand signals, with subdued housing activity limiting offtake, while ongoing infrastructure spending lent some support. Automotive manufacturing remained comparatively stable, helping sustain demand for formaldehyde-based coatings and interior components. Despite the downward trend in methanol feedstock costs and lingering regulatory headwinds, formaldehyde prices remained elevated, underpinned by strong industrial consumption and tight supply dynamics, suggesting continued volatility in the months ahead depending on the pace of regulatory clarity and production recovery.

Get Real time Prices for Formaldehyde: https://www.chemanalyst.com/Pricing-data/formaldehyde-1214

In China, the formaldehyde market during the first quarter of 2025 demonstrated a mostly stable to slightly bullish price pattern, shaped by a delicate equilibrium between consistent supply and fluctuating downstream requirements. Prices commenced the quarter at USD 175 per metric ton FOB Shandong in January, supported by steady production costs and moderate demand, although trading volumes were limited during the Lunar New Year holiday period. By early February, prices softened to around USD 165 per metric ton as seasonal slowdowns in construction and automotive sectors, coupled with broader economic uncertainties, weighed on market sentiment.

However, as February progressed into March, market fundamentals gradually improved. A modest rebound in automotive sales, bolstered by government incentives for electric vehicles, alongside early signs of a construction sector recovery, helped lift demand for formaldehyde used in resins and adhesives. While upstream methanol supply encountered intermittent tightness due to scheduled maintenance activities, the impact on formaldehyde output was muted thanks to stable procurement strategies and well-managed feedstock inventories. By the end of March, prices had edged higher, registering a 2.4% month-on-month increase, though on a quarterly basis, prices still posted an overall decline of 3.4%. Nonetheless, the uptick in late-quarter demand, coupled with improving macroeconomic indicators and renewed industrial activity, signaled cautious optimism for potential market strengthening in the second quarter of 2025.

In Europe, formaldehyde prices in the Netherlands advanced along a resolutely bullish path throughout the first quarter of 2025, rising from USD 565 per metric ton in early January and culminating in a 33.6% gain by the end of March. This sharp increase was chiefly driven by stubborn supply-side disruptions, elevated production costs, and steady demand from downstream sectors including furniture, automotive interiors, and industrial adhesives. Operational bottlenecks were exacerbated by port labor strikes and logistical delays across Europe, which constrained methanol availability and thereby limited formaldehyde production. At the same time, persistently high natural gas prices elevated energy and manufacturing costs, further reinforcing upward price momentum.

Although demand from the construction sector and traditional automotive manufacturing lagged due to ongoing macroeconomic headwinds, overall procurement remained robust as manufacturers sought to secure sufficient volumes of formaldehyde for essential resin and adhesive applications. Additionally, the lifting of regulatory concerns related to the Substance of Very High Concern (SVHC) classification for formaldehyde in February improved market sentiment and supported stronger buying activity. A modest recovery in construction activity and easing of select supply issues were observed in March; however, the accumulated effects of earlier disruptions and continued firm demand kept prices buoyant. Looking ahead, unless there is a pronounced drop in feedstock costs or a significant shift in end-user demand, formaldehyde prices in the European market are expected to remain elevated in the near term, sustained by ongoing supply constraints and steady consumption patterns.

Get Real time Prices for Formaldehyde: https://www.chemanalyst.com/Pricing-data/formaldehyde-1214

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