Formaldehyde: Feedstocks
Why the price is really just methanol plus a bit
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Formaldehyde is methanol plus air. Methanol is 80-90% of the cash cost, so the formaldehyde price is essentially the methanol price times about 1.15 plus a conversion margin. Producers with captive methanol or cheap port access win; most plants are too small to integrate.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Gas Natural gas | about 1.13-1.22 t per t HCHO (100% basis) | sole carbon source | about 80-90% of cash cost (indicative) | stoichiometry and process yields (indicative) |
| Tc Thermal coal | indirect | feedstock behind most Chinese methanol | via methanol | indicative |
| Ag Silver | small; regenerated | catalyst in the silver process | under 1% (indicative) | indicative |
| Mo Molybdenum | small; replaced every 1-2 years (indicative) | catalyst in the oxide process | about 1-2% (indicative) | indicative |
Who is low-cost, and why
Low-cost producers sit next to methanol plants or import terminals (Chinese coal-chemical parks, US Gulf). Indian producers pay import parity for methanol plus duty and freight, so their formalin price tracks CFR India methanol.
Raw materials on the commodity table
Gas Natural gasWhat it is made into
| Product | Note |
|---|---|
| Adh Adhesives and sealants | UF, PF and MF wood adhesives |
| PU Polyurethanes (MDI, TDI, polyols) | via MDI |
| Con Construction chemicals | sulphonated naphthalene formaldehyde superplasticisers |
| Gly Herbicides | glyphosate routes use formaldehyde |
| Pnt Paints and coatings | amino resins and pentaerythritol for alkyds |