SunSirs: Both Supply and Demand Support Was Weak, the Formic Acid Market Declined in September

Price trend

The domestic industrial grade 85% formic acid market fell in September. According to the Commodity Market Analysis System of the SunSirs, as of September 25th, the average price of formic acid quoted by formic acid companies was 3,450.00 RMB/ton, a decrease of 9.80% compared to September 1st and a decrease of 1.43% compared to the same period last year.

Analysis review

In September, the domestic industrial grade 85% formic acid market saw a broad decline. During the month, the price of raw material sulfuric acid was mainly stable with minor fluctuations, while the price of raw material methanol fluctuated and sorted out within a narrow range. The cost of the formic acid market was not significantly affected. The supply and demand side dominated the market. Some manufacturers had overcapacity in the early stages of production, and the supply side had sufficient supply sources. However, the downstream inquiry and procurement atmosphere was weak, with only rigid demand waiting and following up. Some inventory was under pressure, and the mentality of holders to sell out profits was stronger. The focus of negotiations in the formic acid market was downward. The quotation range for industrial grade 85% formic acid from formic acid enterprises on September 25th was between 3,100-3,500 RMB/ton.

Import and export: According to customs statistics, the monthly import volume of formic acid in China was 1,336 kilograms in August 2023, and the monthly export volume of formic acid in China was 22,798,807 kilograms in August 2023.

Market outlook

SunSirs’ formic acid analysts believe that the formic acid market had been operating weakly recently. As downstream stocking before holiday gradually approached its end, the market trading atmosphere was average. It is expected that in the short term, the domestic industrial grade 85% formic acid market may be weak and wait-and-see, and more attention needs to be paid to market news guidance.

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