SunSirs: Insufficient Downstream Purchasing Power, Causing a Downward Trend in the Formic Acid Market

Price trend

According to the Commodity Market Analysis System of SunSirs, as of May 22, the average price quoted by domestic industrial grade 85% formic acid enterprises was 2,937.50 RMB/ton, a decrease of 7.11% compared to last Thursday's price.

Analysis review

Recently, the domestic industrial grade 85% formic acid market had been experiencing a downward trend. Recently, the main raw material methanol market had risen first and then fallen, with strong cost support. The supply and demand faced a certain bearish situation in the market, with sufficient supply of goods, but limited follow-up on the demand side. Downstream buyers mainly chose to buy at lower rigid demand, and the intention of holders to offer discounts and take orders had increased. The focus of negotiations in the formic acid market had declined. On the 22nd, the mainstream quotation range for industrial grade 85% formic acid enterprises was between 2,600-3,000 RMB/ton.

Market outlook

SunSirs' formic acid analysts believe that under the pressure of supply in the formic acid market, profit margins were being adjusted, and coupled with weak cost support, it is expected that in the short term, the formic acid market may continue to consolidate weakly, and more attention should be paid to market news guidance.

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