Price trend:

According to the business data analysis system of SunSirs: Recently, the price of formic acid remained stable. As of December 2nd, the benchmark price of 85% formic acid in China, according to SunSirs, was 2,910 RMB/ton, unchanged from the same period last week (November 25th), a month-on-month increase of 2.83%, and a year-on-year decrease of 0.51%.

Stabilizing factors

Market inventory levels were at a moderate level, and the supply and demand relationship was relatively balanced. There were no instances of severe inventory shortages or surpluses leading to significant price fluctuations.

Most companies maintained a generally stable shipping pace, and although there were slight fluctuations in shipping volumes on some dates, this did not fundamentally impact the overall market supply and demand dynamics.

In the short term, there is a lack of significant upward or downward driving factors, market sentiment remains relatively stable, and companies' pricing intentions are consistent.

Fluctuating factors

A factory in Liaocheng started a month-long scheduled maintenance shutdown on December 1st, and a factory in Feicheng planned to undergo maintenance in December. The maintenance at both factories will reduce market supply to some extent. If demand remains stable or increases during the maintenance period, it could lead to a supply-demand imbalance, thus driving up prices. However, at the same time, market inventory continued to accumulate at the end of November. If the rate of inventory accumulation accelerates, it may put some downward pressure on prices, offsetting some of the impact of the reduced supply due to maintenance.

Market outlook

According to a formic acid data analyst at SunSirs, although a factory in Liaocheng started maintenance, the impact on market supply in the initial stage of maintenance had not yet fully materialized, and the inventory levels were at a moderate level, which can buffer the pressure of reduced supply to some extent. However, as the maintenance continues, market supply will gradually decrease. If subsequent inventory fails to accumulate continuously or demand picks up, prices may rise. The specific situation still needs to be monitored closely.

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