Price trend

According to the commodity market analysis system of SunSirs, the price of formic acid was stable recently. As of November 24, the benchmark price of domestic industrial-grade 85% formic acid on SunSirs was 2,910 RMB/ton, which was the same as the same period last week (November 17), up 3.93% month-on-month and up 2.11% year-on-year.

Supply side: Operations were temporarily stable, but maintenance plans became a potential variable

The supply side remained stable overall, with production enterprises maintaining normal operating rates. During this period, market focus was on the situation of a major factory in Liaocheng: after suspending quotations on November 16, the factory resumed normal shipments on the 17th, with prices remaining at the level of the previous weekend. Although the shipment volume was average, it did not have a substantial impact on market supply.

The scheduled maintenance at a major factory in Liaocheng, originally planned for mid-month, had been postponed to late June. Market sources also indicated that another large factory had maintenance plans for late June. If these maintenance plans at multiple large factories proceed smoothly in late June, they could trigger a temporary contraction in supply, becoming a key factor influencing the subsequent market supply structure.

Demand side: Primarily driven by essential needs, with insufficient incremental growth

Demand was lackluster, characterized by "primarily essential needs with limited incremental growth." With the recent end of the procurement cycle, end-user purchasing activity declined, with most adopting a just-in-time purchasing strategy, resulting in a relatively quiet market.

Market outlook

According to analysts at SunSirs, with no major positive or negative news emerging on either the supply or demand side, prices are likely to remain stable. In the medium to long term, the implementation of major factory maintenance plans in the latter half of this month is crucial. A temporary contraction in supply could disrupt the current balance, and further market developments will require close monitoring.

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