SunSirs: The Formic Acid Market Slightly Increased in March (March 1-27)

Price trend

The domestic industrial grade 85% formic acid market slightly increased in March. According to the Commodity Market Analysis System of SunSirs, as of March 27th, the average price quoted by formic acid companies was 3,300.00 RMB/ton, an increase of 4.76% compared to the reference price of 3,150.00 RMB/ton on March 1st.

Analysis review

From the monitoring chart of SunSirs data, it can be seen that in early March, the domestic industrial grade 85% formic acid market was on the rise. The main reason for the increase was that manufacturers had limited inventory, tight on-site spot circulation, supply side operation without pressure, and some factories and suppliers had raised prices. At this stage, the fluctuation of raw material methanol was narrow and weak, while the price of raw material sulfuric acid was strong and upward. The cost support was still acceptable, and the downstream had a slightly cautious attitude towards purchasing high priced raw materials. The demand side followed commonly.

In the mid to late March, the raw material methanol fluctuated weakly and consolidated, while the raw material sulfuric acid steadily increased. The impact of cost on the market was limited, and downstream industry inquiries and procurement mainly followed up on demand. The market atmosphere was relatively stable, and the market remained stable with small fluctuations.

Market outlook

SunSirs’ formic acid analysts believe that the formic acid market was stable and operating on a wait-and-see basis. From a cost perspective, the main raw material methanol may continue to consolidate in a narrow range, while the high price support of raw material sulfuric acid may continue. The short-term cost impact may be limited. From the perspective of supply and demand, formic acid, as one of the basic organic chemical raw materials, has a wide range of applications in fields such as pesticides, leather, dyes, pharmaceuticals, and rubber. Short-term supply and demand support is still acceptable, and market transactions may continue to be mainly in demand. It is expected that in the short term, the domestic industrial grade 85% formic acid market will remain stable and operate on a wait-and-see basis, with more attention paid to market news guidance.

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