Price trend

According to the data of SunSirs’ bulk list, as of November 30, the average price of domestic industrial-grade 85% formic acid of companies was 4,333.33 RMB/ton, a 46.28% drop compared with the price on November 1, and a decrease of 3.70% in a three-month cycle.

Analysis review

In November, the domestic industrial grade 85% formic acid market fell sharply. In the first half of the month, the price of raw materials fell mainly, and cost support was weak. However, the limited power supply resulted in low output, in the first ten days of November, the formic acid market ran at a high level under the support of the supply side. As cost support continued to loosen, market confidence weakened, corporate offers fell, and the formic acid market weakened, and then waited and saw. In the second half of the month, the prices of raw material methanol, caustic soda, liquid ammonia, and sulfuric acid all declined, and cost support was obviously insufficient. The price of formic acid fell sharply with raw materials, and downstream companies mainly purchased on-demand.

In terms of cost: upstream caustic soda, on November 29, the reference price of caustic soda was 860.00 RMB/ton, which was 41.5% lower than that on November 1 (1,470.00 RMB/ton); upstream liquid ammonia, on the 30th, the market for liquid ammonia in Shandong rose slightly, and most manufacturers in the region had their quotations raised, ranging from 50-100 yuan; upstream sulfuric acid, the domestic sulfuric acid market price dropped sharply in November. The quotation dropped from 843.33 RMB/ton at the beginning of the month to 628.33 RMB/ton at the end of the month, down 215.00 RMB/ton, or 25.49%; upstream methanol, on November 29, the reference price of methanol was 2,696.00 RMB/ton, a 14.59% decrease compared with November 1 (3,156.67 RMB/ton).

Market outlook

Formic acid analysts of SunSirs believe that, on the whole, the formic acid market fell sharply due to the negative cost in November. At present, the price of raw materials has risen and fallen, and cost support is limited. Holders are actively shipping. It is expected that the formic acid market may stabilize in the short term, and more attention should be paid to market news guidance.

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