Urea Formaldehyde Resin Prices (Q4 2021)
In Asia Pacific, formaldehyde prices increased in October before declining in the final two months of the quarter. Rising natural gas prices added to the expense of feedstock methanol during the first half of Q4, resulting in a sharp increase in downstream product pricing. The price decline in the later part of Q4 was mostly due to lower methanol prices and an influx of imports from China. In the fourth quarter of 2021, urea prices also rose. The value of urea-formaldehyde resin increased due to growing feedstock prices.
In Europe, urea prices improved significantly in the fourth quarter. Its price in European markets rose due to higher feedstock ammonia prices, increased input costs due to the energy crisis, and rising natural gas prices. Moreover, increased freight rates and a scarcity of shipping containers played havoc on its prices in the third quarter. However, prices of formaldehyde fell in Q4 compared to Q2 and Q3 as a result of ample supply and weakening demand in Germany, Belgium, and other European countries. As a result of the lower methanol costs, the price of formaldehyde has also dropped. Demand for formaldehyde in the resin industry has also decreased.
Due to a large increase in the price of raw materials, the price of urea surged in the fourth quarter of 2021 in the North American region. However, when compared to Q2 and Q3, formaldehyde prices remained on the low side. Feedstock methanol prices declined in the United States in the fourth quarter of 2021, owing to a slowdown in industrial applications and fuel consumption, as well as an increase in Omicron instances.
Urea Formaldehyde Resin Prices (Q1-Q3 2021)
Prices of urea have rose steadily across the Asian market, owing to increased demand from both the domestic and foreign fertiliser markets. Prices in China spiked in Q1 2021 as a result of a partial lockdown in response to an increase in daily COVID-19 cases. While this had little effect on urea production in the country, it did cause problems with road transit and exports. Meanwhile, demand for urea in India improved from the previous quarter, and limited supply sustained its pricing. Due to an uptick in industrial activity across the region, demand for formaldehyde remained steady from its derivatives sectors like plastics and resins at first. However, methanol supply limits resulted in a formaldehyde shortage in the domestic market. The resin market followed the path of its feedstock and showed a downward trend in its prices.
In the second quarter, the price of urea in India rose due to increased seasonal demand from both the domestic and international markets. However, attitudes on the regional market for formaldehyde were divided across Asia Pacific. After years of steady increases, the price of the resin dropped significantly in August, aided by lower raw material formaldehyde rates in the market.
During the third quarter of 2021, the Asian market saw a major increase in the price of urea. The Chinese resin industry saw consistent demand for the compound, but the sector also reported low material supply. The lack of imports was partly owing to global agri-commodity markets' overall strength, China's temporary suspension of exports, and Western economic sanctions on Belarus. In the third quarter, formaldehyde prices were relatively stable.
During the first quarter of 2021, the European urea market saw steady domestic & global demand. The resins industry boosted its need for formaldehyde, but lower supplies created market tensions. Due to a lack of feedstock formaldehyde in the markets, the price of the resin increased significantly.
Due to the slow rate of economic improvement in the second quarter, demand for urea-formaldehyde remained modest to low. The average price stayed the same.
The price of the resins surged sharply in the European markets in Q3 2021, owing to strong seasonal offtakes and rising fertilizer demand.
In the first quarter of 2021, demand for feedstock urea climbed in the North American region, but prices remained high due to scarcity. Following a protracted winter storm and trade disruption, formaldehyde prices increased as well. The combination of these factors pushed up the price of resins on the market.
During the second quarter, the price of formaldehyde in North American markets fell overall. The resin manufacturers didn't benefit much from the cheap costs because demand was suppressed as a result of their pact. In this quarter, the cost of urea-formaldehyde was low.
In the third quarter of 2021, the market price of formaldehyde increased significantly. This was caused by its shortage in the regional markets. Feedstock urea received mixed reviews. However, as Q3 came to a close, the urea market gained traction as feedstock ammonia began to rise in response to rising natural gas costs. Overall, the cost of formaldehyde resin increased during the quarter.
Urea Formaldehyde Resin Prices Overview 2020
China's urea shipments increased dramatically at the start of the fourth quarter. However, with the start of the Rabi season in India, its demand increased dramatically. The growing demand for urea in fertilisers limited the supply of this critical feedstock for resin production, raising the price of urea-formaldehyde resin.
In the fourth quarter of 2020, formaldehyde prices in Europe increased significantly. As a direct result of this price increase, the cost of resins has also risen.
Due to lower demand at the conclusion of the agricultural season in the United States, supply of feedstock urea remained abundant in Q4. As harvesting drew to a conclusion, the overall rate of demand began to slowdown. Meanwhile, the cost of the formaldehyde skyrocketed. The combination of these factors resulted in a price increase for urea-formaldehyde resin in US markets.
Procurement Resource provides latest prices of Urea Formaldehyde Resin. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Urea Formaldehyde Resin for several regions around the globe, which are as follows:
About Urea Formaldehyde Resin:
Urea formaldehyde resins or urea-methanal is a non-transparent thermosetting resin or polymer. It is manufactured from urea and formaldehyde.
A commonly used method for producing formaldehyde from methanol is followed by another method in which the formaldehyde is first reacted with urea. The resulting product is then polymerized to yield the Urea Formaldehyde Resin.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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