Price trend
According to the commodity market analysis system of SunSirs, the formic acid market has been operating stably recently. As of October 20, the domestic 85% industrial-grade formic acid benchmark price was 2,800 RMB/ton, unchanged from last week (October 13), down 9.68% month-on-month and up 0.9% year-on-year.
Analysis review
On the supply side, domestic production facilities were temporarily operating at high capacity, with leading companies adopting a low inventory strategy. Other companies, driven by pressure to source raw materials from external suppliers, faced significant inventory pressure, with overall industry inventory levels remaining at 60-70%. Upstream methanol prices, impacted by high coal prices and rising natural gas costs, had limited downward pressure, providing some cost support for formic acid.
From the demand side: the overall demand for formic acid downstream was weak, most purchases were made on demand, middlemen were taking a wait-and-see attitude, the market trading atmosphere was light, and shipments continued to be low.
Market news indicates that a large formic acid producer in Liaocheng may begin equipment maintenance soon, but this plan has not yet been officially confirmed. If the maintenance proceeded as scheduled and was large-scale and prolonged, it could lead to tighter supply in some areas, supporting market sentiment and prices. Historical data shows that the market briefly rallied in early September due to the anticipated maintenance, but the subsequent failure to proceed as planned led to a price drop of 120 RMB/ton. Therefore, the progress of this maintenance will have a significant impact on formic acid price trends.
Market outlook
SunSirs' formic acid data analysts believe that formic acid is expected to maintain its market conditions in the short term, and specific attention needs to be paid to whether the maintenance plans of large factories can be implemented.
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