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Formaldehyde Prices Track Cost Fluctuations with an Upward Shift in the Center of Gravity (October 2026)

Published on 2026-10-28

1. Key Market Focus for the Month

  1. 37.71%: Capacity utilization in October decreased by 2.63% month-over-month (MoM).
  2. 1.31 million tons: Total industry production in October increased by 9.03% MoM.
  3. 68 yuan/ton: Profit margins rose by 103 yuan/ton MoM to reach 68 yuan/ton in October.

2. Monthly Market Analysis

Figure 1: Main Formaldehyde Price Trends (2025-2026, Yuan/ton)
(Source: Chempricehub Information)

Table 1: Domestic Formaldehyde Market Price Statistics (Unit: Yuan/ton)

Region Market Sep 2026 Aug 2026 Sep 2025 MoM % YoY %
East China Anhui 1753 1633 1031 7.35% 70.03%
Southwest Guangxi 1944 1746 1117 11.34% 74.04%
East China Southern Shandong 1793 1793 1052 0.00% 70.44%
Central China Henan 1749 1540 968 13.57% 80.68%

Data Source: Chempricehub Information

The formaldehyde market center shifted upward in October. At the beginning of the month, supply reduction during holidays and nearby procurement by downstream users supported a slight rise in prices in production areas. Post-holiday, a surge in methanol prices drove formaldehyde prices higher, keeping the market center strong. Subsequently, as methanol weakened, cost support loosened, putting downward pressure on formaldehyde prices. However, declines were relatively limited due to low inventory levels, pending orders, and intermittent transportation restrictions. Towards the end of this phase, downstream purchasing sentiment improved slightly. During the mid-month period, methanol fluctuated widely, while downstream users aggressively negotiated for lower prices. Formaldehyde producers had weak bargaining power; main production areas offered discounts to reduce inventory, while other regions stabilized after initial drops. Inquiries remained moderate, but end-users only purchased based on specific orders, resulting in flat transaction volumes. At the end of the month, methanol strengthened again, boosting bullish sentiment through cost support. Formaldehyde prices were raised, downstream purchasing enthusiasm improved, and factory shipments were smooth. Later, as cost benefits faded, trading activity loosened slightly.

3. Analysis of Market Influencing Factors

  1. Raw Material Methanol

In early October, inland methanol prices followed port trends and rose. The tight supply situation caused by previous unit maintenance continued, with low inventory levels among enterprises in main production areas. Residual pre-holiday stockpiling demand persisted, leading to strong price-holding willingness in the market. As high prices transmitted to downstream sectors, traditional downstream users and olefin plants became more cautious in their procurement, focusing mainly on rigid demand with insufficient willingness to chase highs. Coupled with the gradual restart of some previously maintained units, inland supply increments were released. This led to an increase in failed auctions in production areas, halting the price rally and causing gradual corrections. Cost support in inland areas remained relatively stable, resulting in smaller declines compared to ports. Regional price spreads narrowed rapidly. From mid-to-late month, transactions were primarily driven by rigid demand, overall trading activity cooled, and the market operated within a fluctuating range.

  1. Unit Supply

Multiple domestic units had plans for load reduction and shutdowns in October. Units such as Liuyang Jinggang and Anhui Qingyang restarted late in the month. Since monthly losses were less than recoveries, total supply decreased for the month.

4. Formaldehyde Market Outlook and Analysis

In November, multiple units in Shandong, Anhui, and other regions have plans to increase loads, with no reported shutdown plans so far. Monthly losses are expected to be less than recoveries, suggesting an increase in next month's production and a potential rise in capacity utilization. Overall, the tug-of-war between unstable cost support and downstream price pressure will persist throughout the month, leaving the market lacking single-direction drivers. Chempricehub Information predicts that the formaldehyde market will undergo wide-range consolidation in the short term.

For more detailed monthly market analysis, please refer to the Chempricehub Information Formaldehyde Monthly Report.

Comments

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  • Yuki Tanaka 2026-10-28 20:05
    Saw formaldehyde prices jump 9% in Oct, driven by methanol feedstock costs and tight supply. Despite lower capacity utilization, margins hit 68 yuan/ton. With November production rising, I expect wide-range consolidation..
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