Why does China still use formaldehyde-based adhesives in panel production despite health concerns?

Why does China still use formaldehyde-based adhesives in panel production despite health concerns?
Formaldehyde remains the backbone of China's panel industry because no substitute matches its economics. Urea-formaldehyde resin accounts for 40-50% of formaldehyde consumption, and roughly 55% of all formaldehyde goes into wood-processing adhesives. Formaldehyde is cheap and simple to extract, while formaldehyde-free alternatives such as MDI, modified soy protein and lignin-based adhesives still carry technical gaps and cost around RMB 6,500 per tonne, roughly three times UF glue. China's formaldehyde output has long ranked first globally, with capacity estimated near 40 million tonnes, over half the world total. Until affordable, high-performance alternatives scale, formaldehyde demand from panel and furniture makers will stay structurally firm.