Tetrasodium EDTA Prices Stabilize Following a Year of Sharp Declines

In a significant market shift, tetrasodium EDTA prices, which had experienced a relentless decline for approximately one year, are now showing signs of stability in the month of October. This much-awaited respite follows a challenging period in the chemicals industry, largely influenced by the downward trajectory of raw material formaldehyde over the past year.

The declining prices can be attributed to a series of interconnected factors that have played a pivotal role in shaping the market dynamics for tetrasodium EDTA. Since the beginning of 2023, the price of the Formaldehyde feedstock, methanol, has been on a slight decline, while the demand for downstream plate factories has been recovering at a slow pace. The raw material formaldehyde inventory had reached a significant high, affecting market sentiments. Terminal power plants, aided by long-term cooperative coal agreements, displayed a weak purchasing mood. This uncertainty in the methanol market had a direct influence on the price of formaldehyde and further Tetrasodium EDTA in the global region, which experienced significant volatility and a general downward trend. However, during the holiday season, non-electric terminal raw coal was consumed, leading to a slight demand for replenishment. The short-term power coal prices remained predominantly stable. All of these factors influenced the trajectory of Tetrasodium EDTA and kept the market feeble.

The troubles for the tetrasodium EDTA market began in May, as feedstock prices experienced a substantial decline, and formaldehyde manufacturers returned to normal operations. However, the downstream panel factories faced weak demand, resulting in high pressure on formaldehyde shipments and persistently elevated inventory levels. This continuous decline in the formaldehyde market added to the challenges faced by the tetrasodium EDTA industry. Simultaneously, some feed methanol shutdown facilities resumed operations, and new investment devices were being introduced, further contributing to a relatively sufficient supply in the mainland market. Consequently, the capacity utilization rate increased, compounding the impact on supply.

It wasn't until August that prices for formaldehyde began to rebound and showcase stability. The price of Formaldehyde raw material i.e., Methanol also exhibited an upward trend. However, downstream panel factories continued to exhibit poor demand, and market trading sentiment remained only moderately favorable. Despite these challenges, formaldehyde manufacturers maintained normal shipping operations, and the market saw a slight uptick in prices due to increased costs. However, there was a glimmer of hope as some methanol shutdown facilities resumed operations, and new investment devices were in the pipeline. This led to a relatively sufficient supply in the mainland market. Several facilities, including Hengxin High Tech, Shenhua Xilaifeng, and others, were undergoing maintenance, while others reduced production.

In August, the prices for formaldehyde began to rebound, bringing a sense of stability, which, in turn, in the later months, showed its impact on the Tetrasodium EDTA prices. This uptick was also mirrored in the raw material methanol prices, though downstream panel factories continued to display weak demand. Formaldehyde manufacturers resumed normal shipping, and the market saw a slight increase in costs. This uptrend in formaldehyde prices had a cascading effect on Tetrasodium EDTA, providing positive cost support.

The increase in the price of formaldehyde had a ripple effect on the tetrasodium EDTA market, providing positive cost support. In conclusion, after a year of relentless decline, the tetrasodium EDTA market is beginning to stabilize, with signs of price recovery. The industry has weathered a storm of factors, including raw material cost fluctuations and poor downstream demand, which have influenced its trajectory. While challenges persist, the recent positive price trend in formaldehyde provides hope for a more robust tetrasodium EDTA market in the coming months.