SunSirs: The Upward Cycle for Formic Acid Concluded as Scheduled

Price trend

According to SunSirs commodity market analysis system, formic acid prices have recently exhibited a weak yet stable trend. As of April 20, the benchmark price for domestic 85% industrial-grade formic acid stood at 2,800 RMB/ton—unchanged from the previous month, but down 17.65% year-on-year.

Market analysis

Fundamentals indicated ample supply, manufacturers lowered their quotes

On the supply side, formic acid availability has remained consistently ample and stable. Although no supply shortages have occurred, the market currently lacks overall upward momentum, providing only weak support for prices—a key factor contributing to the difficulty in achieving a price recovery. Concurrently, while overall industry inventory levels remain at a relatively low base, recent sluggish demand has led to an accumulation of market stocks, further intensifying downward pressure on prices.

Demand-side performance remains lackluster; domestic downstream enterprises exhibit weak purchasing appetite, limiting their procurement largely to immediate necessities. The absence of large-scale, centralized buying activity makes it difficult to generate any effective upward momentum for prices. On the export front, activity consists primarily of fulfilling previously placed orders, while the volume of new orders remains negligible, failing to provide substantial support to market conditions. Following recent price reductions, a "wait-and-see" sentiment within the downstream market has intensified; this has disrupted the pace of manufacturers' shipments and exacerbated inventory pressures on enterprises, thereby driving prices even lower.

To prepare for the upcoming May Day holiday, some manufacturers have proactively adjusted their strategies; simultaneously, capitalizing on the current window of relatively favorable profit margins to secure additional orders, they have voluntarily lowered their price quotes—a move that has served as a key driving force behind the initial, modest downward trend in prices.

Market outlook

Overall, formic acid prices are expected to maintain a trend of continued stability with a weak undertone.

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