The healthy and steady growth of the formaldehyde industry should curb overcapacity growth
The domestic housing price regulation does not relax, causing the market to worry about the real estate industry. Because the main downstream of formaldehyde is closely related to the real estate industry, the negative demand will exacerbate the weak peak season of the formaldehyde market and the weaker off-season. At the same time, serious overcapacity and continued weak demand continued to shrink the profit margins of products, and the pressure for adjustments was steeply rising and upgrading was imminent. First of all, the sluggish real estate industry will drag construction, decoration, building materials, furniture, etc., and then affect the market of sheet adhesives. Plate adhesives account for half of the consumption of formaldehyde, and the reduction in its usage will inevitably affect the demand for formaldehyde. At present, the real estate control policy is not relaxed, the housing transaction volume is difficult to increase, the demand for sheet adhesives continues to be in a suppressed state, and the pressure on the inventory of formaldehyde manufacturers is greater. Under this circumstance, most of the manufacturers of formaldehyde turned their attention to the construction of affordable housing and the development of new downstream areas. However, the geographical distribution of social housing is uneven, and the support for the entire weak formaldehyde market is weak. Other downstream development of formaldehyde is not optimistic. Methylacetal production grew faster, but most methylal manufacturers produce formaldehyde, which has little effect on overall domestic demand improvement. Paraformaldehyde and Urotropine have not improved in the sluggish market. The overall market demand is generally low. Water-reducing agents and other products are sluggish and demand is weak. Due to the lack of expansion of demand, the market for "Jinjiuyinshi" in the formaldehyde market in recent years did not come as expected. Second, in the situation where demand is difficult to follow up, the methanol price of the main raw material directly determines the trend of formaldehyde prices. In early March, boosted by higher raw material methanol prices, prices in major markets such as Hebei, Shandong, and Jiangsu rose. However, after rising to a certain extent, due to limited demand follow-up, transactions were not optimistic. The high cost and the lack of support from the demand have caused some of the formaldehyde manufacturers to only sell capital and the profit margin has shrunk. Finally, there is a serious oversupply of domestic formaldehyde, which has constrained the price increase of formaldehyde and the orderly development of the industry. At present, the total formaldehyde production capacity in China has reached 27.38 million tons, accounting for 50% of the world total. The market demand is only 18.06 million tons, and the overcapacity is over 9 million tons. At present, the overall start-up load in Shandong is about 70%, the start-up load in the Hebei market is around 60%, the start-up load in Jiangsu is between 70% and 80%, and the start-up load in other areas is around 50%. Due to serious overcapacity, under the restrictions of geographical and transportation distance, the market competition in the region is extremely fierce, vicious competition is frequent, and it is in a disorderly state, making formaldehyde a kind of low-value and low-profit products, and business operations are difficult. To maintain the healthy and steady growth of the formaldehyde industry, first of all, it is necessary to curb excessive growth in production capacity. Governments at all levels must establish new devices to build a “hearing mechanismâ€, extensively listen to expert opinions from enterprises and industry associations, strictly control total formaldehyde production capacity, and strictly control the layout of new installations. The new installations located in the hazardous chemicals industrial parks with "three wastes" treatment conditions, no downstream product support, and no new market growth points should not be given approval and construction, and they should actively promote the formaldehyde industry access system and improve access thresholds. At the same time, as soon as possible to expand the new fields of formaldehyde downstream applications, the focus should be on the development of urea-formaldehyde resins, specialty phenolic resins, solid formaldehyde, MDI, methyl acetal, urotropine, polyacetal resins and plastics, polymethoxy dimethyl ether new materials, etc. Downstream products. Sealing Machine,Tube Filling And Sealing Machine,Tube Filling Machine,Automatic Tube Sealing Machine ZHEJIANG FUCHANG MACHINERY CO., LTD. , https://www.fuchangmachinery.com