SunSirs: With Supply Contracting and Inventory Levels Providing Support, Formic Acid Prices Were Stable

Price trend

According to the business data analysis system of SunSirs, the formic acid market was operating stably recently. As of December 5th, the benchmark price of formic acid on SunSirs was 2,910 RMB/ton, unchanged from the price of the previous week (November 28th).

There was a significant contraction in supply

Some facilities at a large manufacturing enterprise in Liaocheng were temporarily undergoing maintenance, which was expected to last for one month. Simultaneously, a major manufacturer in Feicheng had implemented production cuts, resulting in an overall reduction in market supply.

High inventory levels coupled with weak demand

As of December 5th, market inventory levels were at a medium-to-high level, and shipments had decreased compared to the previous period. Demand was characterized by "essential needs dominating, with limited incremental growth." End-users were generally adopting a just-in-time purchasing strategy, resulting in overall weak market demand and a lack of significant growth momentum.

Market Forecast:

According to SunSirs' formic acid data analyst, the domestic formic acid market price remained stable in early December. Although supply contracted due to plant maintenance and production cuts, ample industry inventory provided crucial support for price stability, maintaining a balanced supply-demand situation. In the short term, if there are no significant changes in plant maintenance and production cuts, and inventory levels remain at their current levels, the domestic formic acid market price is expected to continue its stable trend.

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