Price Trends

According to the commodity market analysis system of SunSirs, the domestic formic acid market has generally exhibited a sustained sideways consolidation trend; prices have remained stable without significant fluctuations, and the market's supply-demand dynamics are currently in a state of weak equilibrium. As of May 11, the benchmark price for domestic 85% industrial-grade formic acid stood at 2,400 RMB/ton—a month-on-month decrease of 20% and a year-on-year decrease of 14.29%.

Market Analysis

During the current period, formic acid prices have remained stable; however, underlying market imbalances between supply and demand have gradually begun to surface. The primary influencing factors are concentrated in three key areas: supply, inventory, and downstream demand.

On the supply side, the overall situation remains stable; there has been no significant reduction in production capacity, and market supply remains ample. This abundance of supply provides a fundamental basis for price stability, preventing any upward price momentum that might otherwise arise from supply shortages.

Regarding inventory levels, the concentrated shipment of low-priced orders prior to the May Day holiday resulted in a decline in stock levels at some manufacturing facilities during the break, thereby alleviating inventory pressure to a certain extent. However, from an industry-wide perspective, inventory levels remain in the upper-to-mid range; a situation of inventory scarcity has not emerged, and consequently, the supportive effect of inventory levels on pricing remains limited.

The demand side currently represents the core weakness of the market. Downstream manufacturers generally maintain a bearish outlook, exhibiting sluggish purchasing intentions; their procurement activities are limited primarily to meeting immediate necessities and making minor inventory replenishments, with no signs of concentrated stockpiling. Compounded by a dearth of subsequent positive market catalysts during this phase—which precludes the formation of effective demand-side traction—the market as a whole remains in a state of fragile equilibrium, making it difficult to drive prices upward.

Market outlook

According to SunSirs, the stability of formic acid prices is unlikely to change in the short term, though downside risks persist. Specifically, future trends will continue to depend on shifts in market supply and demand.

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