Price trend

According to data from SunSirs' commodity market analysis system, the domestic formic acid market has recently shown a steady upward trend. As of February 9, the benchmark price of 85% formic acid in China was 2,440 RMB/ton, up 3.83% from 2,350 RMB/ton in the same period last week (February 2), up 6.09% month-on-month, and down 17.29% year-on-year.

Supply side: Maintenance and capacity utilization dominated, while inventory provided support.

The supply side was one of the core drivers of the formic acid market fluctuations this period. On the one hand, plant maintenance led to a temporary contraction in supply. For example, the maintenance of a 100,000-ton capacity plant in Liaocheng lasted throughout the first ten days of the month, directly impacting regional supply. On the other hand, most manufacturers' plants were not operating at full capacity, coupled with some manufacturers' temporary production cuts, resulting in a persistently tight overall market supply, providing fundamental support for price increases. Furthermore, inventory factors were particularly crucial. At the end of January, manufacturers offered discounts to secure a large number of orders, keeping market inventory at a moderate to low level in the first ten days of the month. This further highlighted the tight supply situation and became a significant driver of price increases. The reasonable buffer of previous industry inventory also prevented significant price fluctuations caused by supply gaps resulting from maintenance.

On the demand side: Domestic demand was weak, while exports concentrating at ports provided a supplement.

On the demand side, a divergent pattern emerged: "weak domestic demand and supportive exports." Domestically, the approaching Spring Festival holiday was the core influencing factor. Downstream industries such as rubber, pharmaceuticals, leather, and pesticides gradually entered the final stages of stockpiling, adopting a more cautious purchasing attitude, primarily focusing on rigid demand with weak stockpiling intentions. This had a limited impact on formic acid prices. On the export side, the arrival of the pre-holiday port consolidation period became a significant highlight, with export shipments increasing compared to the previous period. This effectively absorbed some domestic supply, providing some support for prices.

Market Outlook:

According to analysts at SunSirs, based on the current market structure and supply and demand trends, the domestic formic acid market is expected to remain stable before the Spring Festival, with limited price fluctuations. However, specific changes in supply and demand will still need to be monitored.

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