Price trend

According to the commodity market analysis system of SunSirs, the domestic formic acid price has recently shown a trend of first stabilizing and then rising. As of October 28, the SunSirs benchmark price of domestic 85% industrial-grade formic acid was 2,830 RMB/ton.

Premium restocking drove short-term volatility

Last week (October 20-24), product quotes remained stable at 2,800 RMB/ton, maintaining market stability. This week, a localized price premium began to emerge, with some end-users replenishing their stock at 2,830 RMB/ton. The initial price stability was primarily supported by the balance between ample supply and weak demand. The subsequent slight price increase was related to concentrated downstream procurement and stockpiling ahead of price increases, representing a short-term market trend driven by a temporary release of demand.

Supply and demand pattern: supply was sufficient and stable, and the demand side dominated the market rhythm

Supply side: High-load production supported sufficient inventory, the supply of formic acid remained stable and abundant, and the inventory level remained at around 60%; Demand side: The overall performance was weak, and purchases due to rigid demand were released. Due to potential price increase factors in the market, downstream manufacturers concentrated on purchasing, which had driven prices to rise slightly.

Market outlook

The formic acid data analyst of SunSirs believes that: due to market rumors that a large enterprise in Liaocheng had a maintenance plan, but the implementation time had not yet been clarified, it caused concentrated downstream procurement in the short term. As the purchasing demand was released, the market would return to the normal state dominated by rigid demand. It is expected that the price of formic acid will remain stable. Further attention should be paid to changes in market supply and demand, as well as manufacturers' maintenance plans.

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