SunSirs: With Ample Supply and Stable Demand, Formic Acid Prices Remained Stable

Price trend:

According to the commodity market analysis system of SunSirs, the domestic market price of 85% concentration formic acid remained stable recently: as of November 10, the benchmark price of formic acid on SunSirs was 2,830 RMB/ton, unchanged from the previous week.

Supply side: Prices remained stable at high levels, with anticipated maintenance shutdowns in the later period

Formic acid supply was operating at high capacity. Production facilities were operating at near-full capacity, maintaining high overall supply levels and ensuring ample market supply. Major factories and manufacturers in the Liaocheng area were planning equipment maintenance. While supply had not been affected, this maintenance may have a temporary impact on localized supply, requiring continued monitoring of the maintenance progress and its actual scope.

Demand side: Primarily driven by rigid demand, shipments was stable

Demand remained primarily driven by rigid purchasing. Downstream enterprises' procurement demand remained stable, with no significant fluctuations in shipments and steady inventory depletion. Although there are expectations that a concentrated purchasing period may follow, potentially leading to a temporary increase in demand, as of November 10th, there had been no substantial increase in demand, and the market remained in a stable state.

Export side: Orders contracted, exports declined

The export market performed poorly, with new orders continuing to decline and export volume showing a downward trend. This weakened the support for the overall market and became one of the factors affecting market sentiment.

Market outlook

According to analysts at SunSirs, considering both supply and demand, as well as export market performance, the formic acid market will maintain a dynamic balance in the short term. Although there is a potential impact from maintenance shutdowns at a major plant in Liaocheng, overall supply is temporarily ample, demand is stable and inelastic, and the impact of declining exports is relatively limited. Therefore, formic acid prices are expected to remain stable in the short term.

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