Paraformaldehyde (PFA) Price Trend

Paraformaldehyde (PFA) Prices December 2023

The price of paraformaldehyde (PFA) in the USA for Q4 2023 reached 1209 USD/MT in December. Spot cargo discussions, mainly at main ports, were muted as the region was sufficiently supplied by term volumes for December. Instead, demand was lackluster, with existing inventories being gradually compelled and limited demand for fresh stocks.

Despite sellers decreasing prices, purchasing volumes of paraformaldehyde (PFA) in the Asia-Pacific region remained low. Demand from downstream disinfectant and adhesive sectors dropped, with no firm bids and offers from suppliers to buyers. This forced producers to reduce their quotations. Methanol derivatives also followed a sluggish price pattern, reflecting the overall slow market offtake. By December, the price of PFA in China had reached 771 USD/MT.

At the end of the quarter, there was potential for a downside, although most movements in PFA spot prices remained sideways. Restricted requests for additional stock led to limited paraformaldehyde exports from Spain to India and other European countries. Trades of PFA from Spain to India and other European countries declined significantly as market fundamentals remained flat, failing to sustain price momentum. The price of PFA in Germany reached 642 USD/MT in Q4 2023.

Paraformaldehyde (PFA) Price Trend, Market Analysis, and News

IMARC’s newly published report, titled Paraformaldehyde (PFA) Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data, offers an in-depth analysis of paraformaldehyde (PFA) pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot prices at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of price trends across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing paraformaldehyde (PFA) price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Paraformaldehyde (PFA) Market Analysis

The global paraformaldehyde (PFA) market size reached US$ 1.4 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 2.3 Billion, at a projected CAGR of 5.6% during 2023-2032.

• Paraformaldehyde (PFA) in used as a key raw material in the production of various downstream products like resins, adhesives, disinfectants, and pharmaceuticals. The growth in the sectors, such as construction, automotive, healthcare is driving the demand for PFA.
• The paraformaldehyde (PFA) demand is further amplified by its utilization as a feedstock in the production of thermosetting resins, mainly in the manufacture of phenol-formaldehyde resins.
• Paraformaldehyde (PFA) is also becoming popular as a disinfectant agent due to its ability to release formaldehyde when dissolved in water. Moreover, the paraformaldehyde (PFA) market is employed in the healthcare sector for sterilization, disinfection, and preservations purposes. With the increasing focus on the healthcare infrastructure development and rising awareness regarding hygiene and sanitation, the demand for PFA in this sector is expected to grow.
• Ongoing research and development (R&D) aimed at improving the properties and applications of PFA like enhancing its stability, solubility, and compatibility with other substances is supporting the growth of the market.
• The stringent environmental rules aimed at lowering emissions of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) are catalyzing the demand for formaldehyde-based products like PFA, which have lower emissions compared to alternatives.
• According to the content published in 2023 on the website of the World Bank, around 50% of the population resides in urban areas. Urbanizations is leading to the construction activities to accommodate the growing population's housing, commercial, and infrastructure needs. PFA is a key component in the production of phenol-formaldehyde resins used in engineered wood products, such as plywood and particleboard.
• The growing concerns about environmental sustainability and the adoption of bio-based materials are driving the development and commercialization of bio-based alternatives to traditional formaldehyde-based products like PFA.
• The market is also expanding due to the growing utilization of PFA in the textile industry for crease-resistance and wrinkle-free treatment of fabrics. According to the IMARC Group’s report the global textile industry is expected to reach US$ 1,445.4 Billion by 2032.

Paraformaldehyde (PFA) News

The report covers the latest developments, updates, and trends impacting the global paraformaldehyde (PFA) market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in paraformaldehyde (PFA) production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that shape the industry landscape.

Latest developments in the paraformaldehyde (PFA) industry:

• In 2024, Evonik’s Coating & Adhesive Resins Business Line achieved a significant reduction in carbon emissions by powering the production of DEGACRYL® specialty acrylates in Darmstadt with electricity from renewable sources.
• In 2023, Merck invested € 23 Million to expand cell culture media production in Kansas, USA.

Product Description

PFA is formaldehyde polymer which is a white crystalline solid substance. It is usually supplied in powder form and needs to be dissolved in water before use in several applications. It is used in adhesives applications, particularly in industries that demand higher bonding strength, such as the automotive and aerospace industries. It is used in the agriculture sector as a soil fumigant and as a component in certain crop protection products.

PFA is also utilized as a raw material in the production of thermosetting resins with particular focus on phenol-formaldehyde resins used in the fabrication of plywood, particle boards, and other products derived from timber. Besides this, it is employed in the sterilization of utensils and in preserving biological samples.

Regional Coverage

The report provides a detailed analysis of the paraformaldehyde (PFA) market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the price trends. 

Global Paraformaldehyde (PFA) Price

The report offers a holistic view of the global paraformaldehyde (PFA) pricing trends, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level.

Europe Paraformaldehyde (PFA) Price

The European region was characterized by sufficient stockpiles due to commodity trades. The sufficient supply led to production units operating at reduced rates, as firms were compelled to cut output constraints. Market trading fundamentals remained flat, with deals executed only when necessary. Reduced downstream demand continued, mainly affecting new business with disinfection producers, resulted in a quarterly decrease in PFA prices.

The paraformaldehyde (PFA) market in Europe experienced a downward trend in prices in the first quarter of 2024. Significantly, the Netherlands experienced notable price changes during this quarter. The overall price trend of PFA in Europe depicted a consistent decrease, with a clear negative correlation between supply and demand dynamics.

This analysis can be extended to include detailed paraformaldehyde (PFA) price information for a comprehensive list of countries.

North America Paraformaldehyde (PFA) Price

In North America, the paraformaldehyde (PFA) market has experienced sluggish trading fundamentals. This was primarily due to slow market offtakes and negative exports of cargo from the USA to overseas markets. The reduction in production rates among downstream businesses was observed owing to an abundance of raw materials, which led to stockpiling of products and impacting price trends. Week demand in the American region also affected exports to Canada and other parts of North America.

The first quarter of 2024 posed notable challenges for PFA pricing in the North American region, marked by a significant reduction in market prices. The overall trend was negative, with costs declining by 35% compared to the same quarter last year. Many factors contributed to this downward trajectory. Additionally, the significant price changes in the USA underscored the overreaching trend of lowering prices throughout the region.

Specific data on paraformaldehyde (PFA) prices within the United States and Canada can also be provided.

Middle East and Africa Paraformaldehyde (PFA) Price

The report explores the paraformaldehyde (PFA) pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on paraformaldehyde (PFA) prices for countries can also be provided.

Asia Pacific Paraformaldehyde (PFA) Price

In Q4 2023, deteriorating demand and sluggish market purchase had a detrimental effect on PFA market dynamics, resulted in limited prices gains and fresh purchases. The market remained subdued because of insufficient cost support, stemming from declining demand in downstream industries. In addition, failing energy costs and notable primary producer stocks further contributed to the downward pressure on the market. The feedstock methanol market also witnessed sluggishness, exacerbating the situation.

The analysis of the current pricing situation of PFA in Q1 2024 revealed that the prices in the Asia-Pacific region have experienced volatility and stability, ultimately resulting in an overall downward trend in prices. This trend can be attributed to factors such as low demand rates, high supply levels, and weak market conditions.  Throughout the region, the average production price of PFA remained subdued, which led to reduced purchases based on immediate sales.

This analysis can be further extended to include detailed paraformaldehyde (PFA) prices for a comprehensive list of countries within the region.

Latin America Paraformaldehyde (PFA) Price

The analysis of paraformaldehyde (PFA) prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of paraformaldehyde (PFA) pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting paraformaldehyde (PFA) price volatility, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights, ensuring they remain at the forefront of the paraformaldehyde (PFA) industry.