SunSirs: Supported by Supply and Demand, the Formic acid Market Was Stable at a High Level This Week (April 18-21)

Price trend

According to the monitoring data of SunSirs, as of April 21, the average price quoted by formic acid enterprises was 9,666.67 RMB/ton, which was the same as Monday's price and 83.54% higher than that on March 21. In a three-month cycle, the price rose by 113.24%.

Analysis review

This week, the domestic industrial-grade 85% formic acid market was stable at a high level. Recently, the price of methanol, the main raw material, has fluctuated upwards, while the price of sulfuric acid has fallen. The cost side has some support and the supply side is tight. The main downstream formate is mainly purchased on demand, the downstream pesticide and pharmaceutical industry has good demand, the export market is hot, the market inquiry atmosphere is acceptable, and the strong supply and demand support the high and strong formic acid market.

In terms of cost: upstream caustic soda, on April 20, the reference price of caustic soda was 1,280.00 RMB/ton, an increase of 13.88% compared with April 1 (1,124.00 RMB/ton), the market trading atmosphere was good, and the enthusiasm for receiving goods of downstream was acceptable; upstream liquid ammonia, on April 20, the reference price of liquid ammonia was 4,986.67 RMB/ton, an increase of 1.01% compared with April 1 (4,936.67 RMB/ton); upstream sulfuric acid, the domestic sulfuric acid market price fell slightly on April 20, down 30 RMB/ton from April 18, a decrease of 2.49%, and a year-on-year increase of 107.35%; upstream methanol, according to the monitoring data of SunSirs, the average price of domestic methanol production enterprises on April 20 was 2,837 RMB/ton, an increase of 0.98% from the previous trading day and a year-on-year increase of 16.29%.

Market outlook

The formic acid analyst of SunSirs believes that the main raw material methanol is currently volatile to consolidate, and the export market is relatively good. In addition, there is a demand for stocking of the downstream before the May Day, and the support from demand side is stable. Under the support of supply and demand, it is expected that the formic acid market may run at a high level in the short term.

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