China's market price of furfural bounces
back in April 2016 after falling for a long time, pulling up the price of
furfuryl alcohol and increasing the price of corn cob. However, as the price
rebound is just because of seasonal factor, it is predicted that it will fall
in the future.
Source: Bing
China's market price of furfural finally
rebounds in April 2016 after continuously hitting record lows for 3 consecutive
months. According to CCM's price monitoring, the average market price of
furfural is USD1,014.17/t (RMB6,550/t) in April 2016, up by 6.3% MoM but down
by 22.59% YoY.
In recent years, furfural market price kept falling affected by
the raw material price and market demand. The price gap between the highest
(Dec. 2014) and the lowest (March 2016) amounted to USD542.02/t (RMB3,500/t).
At the same time, the price of furfuryl
alcohol (downstream product for furfural) also rises. The average market price
of furfuryl alcohol is USD1,166.42/t (RMB7,616.67/t) in China in April 2016, up
by 5.7% MoM, according to CCM. The price of furfuryl alcohol is closely related
to the price of furfural. Therefore, the furfuryl alcohol price has also
dropped for 8 consecutive months and finally rebounds in April this year.
Market prices of furfural and furfuryl alcohol
in China, Jan. 2014-April 2016
Source: CCM
Notably, the price rise of furfural also
rebounds the price of corn cob (raw material for furfural). Furfural
manufacturers are active in purchasing corn cob because of the rising price of
furfural. But since farmers are cautious about selling corn cob for
insufficient supply in the market, furfural enterprises raise the price to
compete for high purchase volume.
According to analyst CCM, the purchase price
of corn cob (after dehydration) is USD55.74/t (RMB360/t) in Shandong Province,
up by 6.2% MoM.
Nevertheless, the price rebound of furfural
is just because of the seasonally strengthening demand. CCM's research shows
that the market price of furfural also recorded a MoM rise of 4.05% in April
2015. So CCM predicts that the price will fall in the future, because of:
- Weak demand
China's furfural market remains sluggish
and the demand of terminal enterprises is weaker than previous years.
- High inventory
China's furfural market suffers from
overcapacity and enterprises maintain low operating rates.
- Fierce competition
Furfural enterprises strive for more market
shares through decreasing the price.
As a result, the market price of furfural
will start to decline affected by above negative factors.
This article comes from Corn Products China News 1604, CCM
About CCM:
CCM is the leading market intelligence provider for China’s
agriculture, chemicals, food & ingredients and life science markets.
Founded in 2001, CCM offers a range of data and content solutions, from price
and trade data to industry newsletters and customized market research reports.
Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a
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Tag: furfural