SunSirs: Under the Support of Supply and Demand, the Market Price of Formic Acid Rose Slightly (September 1-8)

Price trend

According to the monitoring data of SunSirs, as of September 8, the average price of formic acid quoted by formic acid enterprises was 3,766.67 RMB/ton, an increase of 2.73% compared with the price at the beginning of the month, a decrease of 6.61% compared with the price on August 8, and a year-on-year decrease of 20.98% in a three-month cycle.

Analysis review

Since September, the market price of domestic industrial grade 85% formic acid has risen slightly. The price of upstream raw materials fluctuated recently, and the cost side had a general impact. Mainstream production enterprises started at a low level, the main downstream formate market followed up, and the supply and demand side improved compared with the previous period, supporting the rise in formic acid prices this time. Downstream pharmaceuticals, pesticides, epoxidized soybean oil and other industries followed up as needed.

In terms of cost: upstream caustic soda, on September 7, the price of caustic soda was operating in a consolidation, and the downstream was mostly wait-and-see attitude. It is generally expected that the consolidation trend will be maintained in the later stage; Upstream liquid ammonia, on September 7, the reference price of liquid ammonia was 4,133.33 RMB/ton, an increase of 6.9% compared with September 1 (3,866.67 RMB/ton); Upstream sulfuric acid, the domestic sulfuric acid market price was temporarily stable on September 7; Upstream methanol, on September 7, the benchmark price of methanol was 2,648.00 RMB/ton, an increase of 4.75% compared with September 1 (2,528.00 RMB/ton).

Market outlook

Formic acid analysts of SunSirs believe that the current cost support is acceptable, the supply side output is expected to increase, and the gold September silver October demand side is not as strong as expected, but the short-term market supply and demand support still exists. It is expected that in the short term, the domestic industrial-grade 85% formic acid market may be stable and strong, and more attention should be paid to market news guidelines.

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