SunSirs: Formic Acid Prices Fell and Then Stabilized After the Holiday

Price trend

According to the commodity market analysis system of SunSirs, after the holiday, the domestic 85% industrial-grade formic acid showed a downward trend and then a stable operation trend. As of October 14, the price of 85% industrial-grade formic acid of SunSirs was 2,800 RMB/ton, a month-on-month decrease of 9.68% and a year-on-year increase of 0.9%.

Analysis review

Supply and demand drove prices

The core problem in the formic acid market lay in weak demand. With no substantial improvement in downstream sectors (such as pesticides, leather, and printing and dyeing), purchasing enthusiasm remained low, suppressing prices. Meanwhile, supply-side inventory remained at a moderate, manageable level, making the supply-demand balance unlikely to be disrupted in the short term.

There were potential supply variables in the market

According to market news, a large-scale production enterprise in Liaocheng may initiate a maintenance plan. If the maintenance plan is implemented as scheduled and the maintenance scale is large and the cycle is long, it may lead to a tightening of supply in some local areas, which will in turn have a certain supporting effect on market sentiment and prices; but the news has not been confirmed yet.

Market outlook

SunSirs’ formic acid data analysts believe that after October, the formic acid market will remain stable, with "stable fundamentals and potential uncertainties remaining to be observed," and prices will generally remain stable. In the short term, attention will still need to be paid to the recovery of downstream demand and the progress of Liaocheng enterprises' maintenance plans. These two factors will be key to breaking the price impasse. In the absence of a clear driving force, it is expected that the price of 85% formic acid will continue to fluctuate around 2,800 RMB/ton.

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