How does methanol feedstock cost drive formaldehyde pricing in China?

How does methanol feedstock cost drive formaldehyde pricing in China?
Formaldehyde production is overwhelmingly methanol-based, and methanol typically represents about 90% of formaldehyde's finished cost. That tight linkage means formaldehyde prices move with methanol almost mechanically. Regional spreads are wide: southeast China commands higher formaldehyde prices on stronger industrial demand, while the northwest sits lower on weaker offtake and limited sales radius, since formaldehyde is costly to transport over long distances. Recent methanol dynamics, including port inventory around 773,800 tonnes and spring maintenance cutting operating rates to roughly 84%, feed directly into formaldehyde economics. When coal prices retreat, methanol softens and formaldehyde can break key thresholds such as RMB 2,500 per tonne.