SunSirs: Formic Acid Market Fell (August 1-10)

Price trend

According to the monitoring data of SunSirs, as of August 10, the average price of formic acid quoted by formic acid enterprises was 3,766.67 RMB/ton, which was a decrease of 6.61% compared with the price on August 1, and a decrease of 1.74% compared with the price on July 10. It fell 39.89% in a three-month cycle.

Analysis review

Recently (8.1-8.10) the market price of domestic industrial grade 85% formic acid fell. Recently, the prices of upstream caustic soda, liquid ammonia and sulfuric acid were relatively weak, and the main raw material methanol was sorted at a low level, and the cost-side support for the formic acid market weakened. The downstream maintained just-needed purchases, the market sentiment was general, and the focus of industrial-grade 85% formic acid market discussions was down.

In terms of cost: upstream caustic soda, on August 9, caustic soda companies adjusted their quotations flexibly, but the attitude was mainly wait-and-see, and it is generally expected that the consolidation trend will be maintained in the later period. Upstream liquid ammonia, on August 9, the liquid ammonia market in Shandong area stopped falling and stabilized, the market was still weak, and some dealers still fell slightly, with a downward adjustment rate of around 50 RMB/ton. Upstream sulfuric acid, on August 9, the reference price of sulfuric acid was 522.00 RMB/ton, a decrease of 14.71% compared with that on August 1 (612.00 RMB/ton). Upstream methanol, according to the monitoring data of SunSirs, on August 9, the price of methanol at domestic East China ports was about 2,490 RMB/ton, down 2.23% from the previous working day. On August 9, the main methanol futures contract, M2209, closed at 2,488 RMB/ton, down 59 RMB/ton or 1.54% from the previous close.

Market outlook

The formic acid analyst of SunSirs believes that the current price of raw materials is weak, the cost support is insufficient, and the market transactions are on demand. It is expected that in the short term, the domestic industrial-grade 85% formic acid market may be weakly sorted out, and more attention should be paid to changes in raw material prices.

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