According to the commodity market analysis system of SunSirs, the domestic market for 85% formic acid exhibited a generally weak and steadily declining trend in early June, with prices fluctuating downward. As of June 8, the benchmark price for formic acid stood at 2,400 RMB/ton, remaining flat month-on-month but down 2% year-on-year. Market activity during this period unfolded in three distinct phases, characterized by a downward trend that gradually intensified.
The first phase was an initial pullback on June 1, when the prevailing average price for 85% grade formic acid stood at 2,550 RMB/ton—a 2% drop from the previous day—marking the start of a weak market trend for the week. The primary driver of this decline was a wave of price concessions by producers, which pushed overall market quotes lower; simultaneously, persistent weakness in end-user demand and expectations of further price drops led downstream enterprises to adopt a cautious purchasing stance, resulting in sluggish transaction volumes for essential needs and setting the tone for the week's overall weakness.
The second phase, spanning June 3 to June 5, was characterized by sideways consolidation and a period of quiet decline as the market built up momentum for further movement. On June 2, the market price for formic acid remained flat at 2,550 RMB/ton—a short-term consolidation following a significant prior drop; there were no signs of a market recovery, demand remained weak, downstream purchasing confidence was low, and overall trading volume continued to shrink. On June 3, the market broke downward again, with the mainstream average price falling to 2,500 RMB/ton—a single-day drop of 2%. As the market weakened further, manufacturers engaged in covert price-cutting competition to secure orders, shifting the pricing model toward case-by-case negotiation and order-specific pricing. From June 4 to 5, the mainstream average price held steady at 2,500 RMB/ton; while quoted prices appeared stable, actual trading activity continued to weaken amidst underlying volatility. Intensifying competition for limited orders led most manufacturers to offer varying price concessions, and the flexible "negotiate-per-order" model became widespread. This resulted in chaotic transaction prices and significant price disparities; the superficially stable quotes failed to reflect the underlying weakness of the market, and overall trading sentiment remained sluggish.
The third phase, occurring on June 8, was marked by a sharp decline as market weakness intensified. The prevailing average price for 85% grade formic acid dropped significantly to 2,400 RMB/ton—a 4% decrease from the previous trading day and the steepest single-day drop of the week. During this period, the conflict between supply and demand came to a head; support from essential end-user demand was weak, while producers faced heavy pressure to move inventory. Major manufacturers continued to offer deeper price concessions, leading to increasingly divergent transaction prices and a market characterized by significant price dispersion, where low-price, high-volume sales became the norm.
Market Outlook:
Based on core market dynamics, the supply-demand balance for formic acid is currently weak—a situation unlikely to change in the near term—suggesting a fluctuating downward trend; however, specific movements will depend on evolving supply and demand conditions.
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