Price trend

According to the Commodity Market Analysis System of SunSirs, the price of formic acid has been stable recently. As of July 21st, the benchmark price of 8% formic acid in China was 2,400 RMB/ton, which was the same as the beginning of the month and was at a low level within the year..

Analysis review

The pressure on the supply side had eased to some extent

Due to the dual impact of partial production line maintenance and good export orders from a leading enterprise, formic acid inventory had been reduced. According to data from the General Administration of Customs, in June 2025, China exported 22,000 tons of formic acid.

The demand side remained weak

On the demand side, the domestic terminal market demand was still weak and there was no obvious sign of recovery yet. Downstream industries such as pharmaceuticals, rubber, leather, pesticides, etc. were mainly focused on rigid procurement, and overall market demand was sluggish. ​

Insufficient support on the raw material side

The raw material methanol market was weak and volatile. According to the Commodity Market Analysis System of SunSirs, from July 14th to 18th (as of 15:00), the domestic methanol market in East China port quotations fell from 2,390 RMB/ton to around 2,387 RMB/ton, with a price drop of 0.10% during the cycle, a month on month drop of 12.00%, and a year-on-year drop of 5.48%. Traditional downstream demand in port areas was still weak, coupled with the replenishment of domestic sources, the delivery of methanol in the port market was still not ideal, and the large accumulation of methanol inventory in ports had suppressed the market.

Future outlook:

Overall, the contraction of the supply side had to some extent buffered the pressure of weak demand. However, due to the sustained low demand from end-users, it is expected that the formic acid market price will continue to maintain a stable trend in the short term. The subsequent market development needs to closely monitor the recovery of enterprise production capacity and the progress of downstream demand recovery.

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