SunSirs: Driven by Dual Momentum in Supply and Demand, Formic Acid Prices Were Gradually Rising

Price trend

According to the commodity market analysis system of SunSirs, the domestic formic acid market has recently exhibited an overall trend of stable, sideways consolidation. The SunSirs benchmark price for 85% formic acid has held steady at 3,000 RMB/ton—representing a month-on-month increase of 22.45% but a year-on-year decline of 11.76%. No significant fluctuations have been observed; the interplay between market supply and demand was trending toward equilibrium, and the market lacked a clear directional driver for prices in the short term.

Supply Side: Maintenance and Low Inventory Provided Price Support

On March 25, although some manufacturers selectively raised their quotes based on their individual operational circumstances, the magnitude of these price adjustments was limited and did not exert a significant impact on the overall market pricing structure. The supply side showed signs of contraction, with overall domestic formic acid inventories remaining at low levels; this situation provided a degree of support to market sentiment and, to some extent, curbed the potential for price declines.

Demand Side: No instances of large-scale stockpiling or concentrated purchasing had been observed

Downstream enterprises were exhibiting weak purchasing sentiment, with procurement activities largely limited to meeting immediate, essential needs; there had been no evidence of large-scale stockpiling or concentrated buying, meaning the demand side has failed to generate any effective upward pull on the market. The forces of supply and demand are trending toward equilibrium—a key factor underpinning the market's current sideways movement. Based on this comprehensive assessment, it is highly probable that the market will continue to follow this pattern in the short term.

Market Outlook

According to an analyst specializing in formic acid data at SunSirs, a comprehensive assessment of past market trends and the current supply-demand landscape suggests that the domestic formic acid market is highly likely to continue its sideways consolidation in the short term, with limited scope for price fluctuation. However, specific market movements will continue to depend on the progress of plant maintenance, the pace of recovery in downstream demand, and the emergence of various bullish or bearish market factors.

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