Price trend

According to the commodity market analysis system of SunSirs, the formic acid market has recently shown a weak consolidation pattern under the weak balance of supply and demand. As of October 9, the benchmark price of formic acid in SunSirs was 2,933 RMB/ton, down 3.3% from before the holiday, down 8.9% from the previous month, and up 5.71% from the previous year.

Analysis review

Inventory Released

On September 25th, manufacturers released reserved inventory and initiated price adjustments, effectively reducing inventory levels from high to a median of 55%-60%. Leading companies, such as Luxi Chemical, maintained a low inventory strategy, while small and medium-sized enterprises, due to a high proportion of outsourced raw materials, faced significant inventory pressure.

Weak demand side performance

The market was in a price adjustment phase before the holiday, and some downstream companies were adopting a moderate purchasing strategy due to pre-holiday stocking needs and expectations of price bottoming out. However, overall, end-market demand remained insufficient.

The price of raw material methanol was supported

After the National Day holiday, the methanol market simultaneously entered a critical stage of upstream companies destocking and downstream companies replenishing inventories. Affected by the high coal prices and rising natural gas costs, the downward space for methanol prices was limited, which provided certain support for the cost of formic acid.

Market outlook

SunSirs’ Formic Acid Data Analyst believes that as of October 9, the formic acid price had no obvious upward momentum due to cost support and weak balance between supply and demand, and is expected to maintain a weak and volatile trend.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.