In early February 2026, the domestic formaldehyde market entered its traditional off-season due to the approaching Spring Festival, operating steadily overall with subdued trading activity. According to monitoring by the Business Society Commodity Market Analysis System, as of February 9, the average price of formaldehyde in Shandong was reported at 1,023 yuan per ton, unchanged from the beginning of the month but down 11.17% year-on-year. Prices were at a one-year low and within an oversold range over a three-year period.

In terms of cost drivers, the price of raw material methanol weakened slightly, theoretically alleviating cost pressures for formaldehyde, though it remained higher than formaldehyde prices. Industry profitability remained under pressure. On February 9, the Business Society methanol benchmark price was 2,223.33 yuan per ton, down 1.84% from the beginning of the month.

On the supply side, some production units were shut down or operating at reduced capacity, leading to a decline in capacity utilization. However, supply remained ample. Enterprises faced significant inventory pressure, focusing on stabilizing prices and reducing stockpiles.

Regarding demand, downstream sectors such as wood-based panels entered a seasonal off-season, with reduced pre-holiday operations and only essential procurement. Other downstream users primarily relied on self-supply, providing limited support. Demand is expected to gradually recover after the Spring Festival.

Looking ahead, in the short term, as businesses gradually close for the holiday, market sentiment is dominated by withdrawal, and stability is expected to prevail. In the long term, as weather warms, construction sites resume operations, and domestic policies aimed at stabilizing growth take effect, demand for building materials is expected to gradually recover, potentially leading to a corrective rebound in prices.