SunSirs: Supply-Side Production Cut, and Formic Acid Prices Soared

Price trend

According to the commodity market analysis system of SunSirs, the domestic formic acid price has risen rapidly recently. As of August 11, the SunSirs benchmark price of domestic 85% industrial-grade formic acid was 3,550 RMB/ton, up 32.96% from 2,670 RMB/ton at the beginning of the month, up 47.92% from the previous month, and up 27.93% from the same period last year.

Analysis review

Mainstream manufacturers adopted a limited supply strategy, resulting in a significant reduction in supply

Domestic mainstream companies implemented a quantity-controlled sales policy, resulting in a continued tightening of the market supply side, manufacturers operating at low rates, and formic acid inventories at historical lows.

Domestic demand was weak, external demand was strong, and the supply and demand pattern tended to be tight

Domestic demand: While essential production purchases maintained their normal pace, downstream companies generally adopted a cautious purchasing strategy, leading to a more rational market trading atmosphere. Data shows that China's total formic acid consumption in the first half of 2025 was approximately 136,000 tons, a year-on-year decrease of 5.0%.

In terms of external demand, China's formic acid was mainly exported to the Netherlands, Turkey, India, Vietnam, Russia and other regions. The recent export performance was strong, and the foreign trade orders of major Shandong factories have been scheduled until September.

Market outlook

SunSirs’ formic acid data analysts believe that recent tight formic acid supply coupled with continued export demand has driven market prices upward. As major manufacturers maintained a low inventory strategy, coupled with strong support from export orders, formic acid prices are expected to remain volatile at high levels in the short term, requiring continued attention to market supply and demand.

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