Most formaldehyde produced in the United States is for the manufacture of resins, such as urea-formaldehyde, used to make the adhesives for pressed wood products, such as particleboard, furniture, paneling, cabinets, and other products.echanistic Studies: The mechanisms by which formaldehyde causes cancer are not completely understood; however, formaldehyde clearly causes genetic damage in the nasal sinus of animals. Less is known about how it causes myeloid leukemia.