CCM: China's market price of furfural bounces back in April 05-18-2016

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 brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

 

Tag: furfural


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