Price trend

According to the commodity market analysis system of SunSirs, the price of formic acid has been on the rise recently. As of August 4, the SunSirs’ benchmark price of domestic 85% industrial-grade formic acid was 3,100 RMB/ton, up 29.17% from the previous month and up 13.76% from the same period last year.

Analysis review

Both supply and demand were driving price increases

On the supply side: Manufacturers' continued control over production volumes has led to a tightening supply, resulting in a current market shortage.

Demand: Export demand was increasing, and the market was temporarily in an export cycle, leading to tight inventory.

Methanol prices fluctuated on the raw material side

The domestic methanol market was showing signs of recovery. Northwest olefin plants were increasing their external purchases. In addition, some units were still under maintenance and corporate inventories were low, which had a positive impact. Upstream companies were holding prices to ship goods, and downstream companies were passively following suit.

Future outlook:

SunSirs’ formic acid data analysts believe that the formic acid market was temporarily in short supply, but there was still upward momentum. It is expected that the price of formic acid will continue to rise, but specific changes in market conditions still need to be monitored.

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