SunSirs: On Site Supply Decreased, Formic Acid Prices Rose

Price trend

According to the Commodity Market Analysis System of SunSirs, the price of industrial grade 85% formic acid in China rose in early December. As of December 2, the average price of 85% formic acid in China was 2,925 RMB/ton, an increase of 5.41% from the same period last month at 2,775 RMB/ton.

Analysis review

Raw material side: The main futures of raw material methanol have risen, and spot prices at ports have increased accordingly. The trading atmosphere in the mainland market was good, and local production had declined. In addition, factory inventories remained at a low level, which was supported by favorable raw material inventory, and the price center had shifted upward.

Supply side: Some units of Luxi Chemical, the largest domestic manufacturer of formic acid, had been shut down for maintenance. Asde's supply was tight, and overall production was basically at a medium to low level. The amount of spot goods on site has decreased, providing favorable support for the supply side.

Demand side: Many downstream manufacturers of formic acid had a strong demand for purchasing, and the demand side had limited support for formic acid prices.

Market outlook

The formic acid data analyst from SunSirs believes that due to the reduction in supply and the strong operation of raw materials, the formic acid market will operate steadily, but will not have a significant increase due to demand constraints. Specific attention still needs to be paid to the trend of raw materials and downstream markets.

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