SunSirs: Formic Acid Prices Rose as Maintenance Plans Were Scheduled in Both Production Areas

Price trend:

According to the commodity market analysis system of SunSirs, the price of formic acid was rising recently. As of November 17, the benchmark price of 85% industrial-grade formic acid in China was 2,910 RMB/ton, up 2.83% from the same period the previous week (November 10), up 3.93% month-on-month, and up 4.86% year-on-year.

Key factors driving price increases: Maintenance plans reported in both production areas

A leading manufacturer in Liaocheng was about to begin a 30-day maintenance program, coinciding with another major manufacturer in Feicheng scheduled to perform equipment maintenance at the end of this month. This dual-production-area maintenance will lead to a temporary contraction in market supply. From "maintenance about to begin" to "simultaneous maintenance in both production areas," and then to "maintenance postponed to the end of the month," three adjustments in expectations had dominated market sentiment. Although supply remained ample, the expectation of maintenance had already provided substantial support for prices.

Downstream enterprises maintained a consistent purchasing pace, resulting in stable inventory depletion and no significant increase or decrease in demand. Major application industries such as pharmaceuticals, rubber, and leather purchased only as needed, showing limited tolerance for price increases, which to some extent mitigated significant price fluctuations.

Market Forecast:

According to analysts at SunSirs, formic acid prices are likely to remain high at around 2910 RMB/ton in the short term. If maintenance shutdowns proceed as scheduled later this month, it could further exacerbate supply shortages. Further monitoring of plant operations is necessary.

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