SunSirs: The Interplay Between Supply and Demand Was Trending Toward Equilibrium, and Formic Acid Was Undergoing Sideways Consolidation

Price trend

According to the commodity market analysis system of SunSirs, the domestic formic acid market has recently continued its overall sideways consolidation trend, operating steadily with prices remaining stable. As of April 7, the SunSirs benchmark price for 65% industrial-grade formic acid stood at 3,000 RMB/ton—a month-on-month increase of 22.45% and a year-on-year decrease of 11.76%. The market exhibited no significant fluctuations, and its overall price center remained stable.

Market analysis

Supply Side: Companies adjusted production plans, supporting price stability.

During the initial period (March 31–April 1), a number of production units on the supply side remained under maintenance; the prevailing trend of low inventory levels remained unchanged, continuing to provide support to the market. On April 2, although most formic acid manufacturers had resumed production, they had not yet reached full-capacity operation; the pattern of low inventory levels therefore persisted, maintaining its supportive influence and collectively serving as a crucial stabilizing factor for prices.

Demand Side: Stable Performance, Dominated by Essential Demand

Downstream enterprises exhibitED weak purchasing intentions and low enthusiasm, focusing primarily on acquiring goods and replenishing inventory solely to meet immediate, essential needs; there has been no evidence of large-scale, centralized purchasing activity, and the balance of power between supply and demand is trending toward equilibrium.

Market Outlook

Overall, the upside potential for formic acid prices appears limited, while downside support remains ample; consequently, prices are expected to continue trading sideways. Future movements will depend specifically on changes in market supply and demand dynamics.

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