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SunSirs: Formic Acid Market Prices Fell Sharply in May

May 30 2022 15:02:14     SunSirs (John)

Price trend

According to the monitoring data of SunSirs, as of May 29, the average price of formic acid quoted by enterprises was 5,433.33 RMB/ton, a decrease of 43.79% compared with the price at the beginning of the month, an increase of 17.69% in a three-month cycle, and a year-on-year of 98.78%.

Analysis review

In May, the market price of domestic industrial grade 85% formic acid fell sharply. In the first half of the month, the price of methanol, the main raw material, was mainly on the decline, with little impact on the cost side. Mainstream enterprises resumed construction. The supply side was relatively abundant, the export market orders were stable, and the domestic demand side was weak. In the early stage, the price of formic acid rose to a high level. The downstream resistance to high-priced raw materials gradually increased, the enthusiasm for purchasing weakened, and the holders were actively shipping. The market mentality was under pressure, and the price of formic acid fell sharply. In the second half of the month, methanol, the main raw material, rose first and then fell. The cost support was limited, the supply side was still dissatisfied with the start of construction, and the export demand was stable. After the previous price dropped sharply, the enthusiasm for downstream purchases increased, and the price of formic acid rebounded. Near the end of the month, as the installations recovered and the market sentiment was normal, prices fell again.

In terms of cost: upstream caustic soda, on May 27, the reference price of caustic soda was 1,250.00 RMB/ton, a decrease of 1.88% compared with May 1 (1,274.00 RMB/ton); upstream liquid ammonia, on May 27, the liquid ammonia market in Shandong liquid ammonia market stabilized , the price of liquid ammonia in some large factories rebounded slightly, with a range of around 50 RMB/ton; upstream sulfuric acid, the domestic sulfuric acid market was temporarily stable on May 27; upstream methanol, according to the monitoring data of SunSirs, on May 27, the methanol reference price was 2,620.00 RMB/ton, which was lower 4.55% than that on May 1 (2,745.00 RMB/ton).

Market outlook

The formic acid analyst of SunSirs believes that the current main raw material methanol market is turbulent and sorted, the cost support is limited, the market atmosphere is general, and the holders are mainly active in shipping. It is expected that the formic acid market may consolidate at a low level in the short term, and more attention should be paid to market news guidelines.

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