Formaldehyde: Demand is gradually off-season, and market psychology is being analyzed

In 2012, the domestic chemical product market was like a “fighting Adou”, and profits shrank dramatically. Formaldehyde is a tiny member of chemical products and the market is vulnerable. The end-users received limited goods. After the year 3-4 months, the small demand season did not appear. The market experienced no peak season and a weaker off-season.

Entering the domestic formaldehyde market in 2012 continued to be in a weak operation, with the lack of transaction volume, the contradiction between supply and demand became increasingly acute. Especially after the **, Premier Wen proposed that the property market's regulation and control policies should not be relaxed, housing prices should be returned to a reasonable price, the building and decoration industry was frustrated, and the road to recovery of formaldehyde downstream products related to construction and decoration was a long way off. Entering the mild off-season period of the formaldehyde market in June, Zhuo Chuang exchanged views with the people in the venue and analyzed the market mentality as follows.

Type 1: calm and comfortable. According to statistics from Zhuo Chuang, some domestic manufacturers of formaldehyde remain unchanged. When the price of raw material methanol rises, when the cost is exerted pressure, the price will be shipped at a steady price to guarantee the supply of contract users and the price will be exchanged by the amount. When the raw material methanol market went down, the cost pressure was slightly released, the price did not change very much, and the stable price was shipped, which made up for the loss in the previous period, the device load was slightly reduced, and the inventory pressure was avoided. During the first five months of the year, the frequency of price adjustments was extremely low and the rate was very limited. The mentality of this type of people in the industry is relatively peaceful, and the way to seek a way out in the era of low profit.

Type 2: Urgently lit. This part of the manufacturers belonged to Fengfengcao. When the raw material methanol market went up, it chased up in a timely manner, causing some downstream manufacturers to reduce the intention of receiving goods and shrinking trading volume. When the price of raw material methanol fell, the pressure on the cost side was neglected for the sake of quantity, and when the raw materials with high prices had not been consumed in the previous period, the price was reduced, and the profit was very limited, even at the margin of loss, and it was difficult to guarantee the actual demand on the transaction. This type of market people love to play "price war", the mentality is more pessimistic and negative, the survival of enterprises is facing a dilemma.

Type three: rational face type. A few manufacturers fall into this category. This part of the market found that the current formaldehyde market over-reliance on the traditional phenomenon of downstream sheet adhesive agent, and the property market regulation and control policy is difficult to relax, at the same time, plate export and domestic sales resistance, cost increases, plate manufacturers monetary tightening; many bearish pressure Traditional demand, the formaldehyde market is difficult to find from the traditional needs of "life-saving straw." Actively changing concepts and learning from foreign technologies, not only focusing on the current national standard formaldehyde market, but seeking a high concentration of formaldehyde market is gradually exploring. At the same time, there is a part of the formaldehyde companies choose to transform their business, they ridicule Road, "early death and early enrollment."

From this point of view, the domestic formaldehyde market has the upper hand, and the current situation is difficult to solve the demand. Weak demand, overcapacity, and imbalances in supply and demand will escalate again. Reshuffling may save the lingering formaldehyde market.