SunSirs: The Upward Momentum Dissipated, and the Price of Formic Acid Returned to Stabilize

Price trends

According to the commodity market analysis system of SunSirs, the domestic formic acid market has recently shown a trend of stabilizing and holding steady after an initial rise; as of July 13, the benchmark price for formic acid stood at 2,300 RMB/ton, marking a 9.52% increase from the 2,100 RMB/ton recorded at the beginning of the month.

After consecutive increases, prices stabilized

In early July, the formic acid market experienced a sustained upward price trend, with trading activity seeing a temporary recovery that laid the groundwork for subsequent price stability. After July 6, the market's upward momentum gradually subsided, and overall conditions returned to a rational, steady range. Regarding key supporting factors, strong sales performance in the preceding period effectively drove industry-wide inventory levels down to a reasonable, moderate range; with inventory pressure kept under control, the market enjoys solid fundamental support for stable pricing, effectively mitigating the risk of a price decline and solidifying the market floor.

Regarding market constraints, the formic acid industry is currently in its traditional off-season; downstream end-user demand remains generally lackluster, and the pace of essential procurement has slowed. The market lacks the sustained demand growth needed to drive prices upward, a factor that is primarily keeping market trends range-bound. Overall, the tug-of-war between bullish and bearish forces is currently balanced: a healthy decline in inventory provides support, while weak off-season demand exerts downward pressure, resulting in a stable market landscape as these opposing factors offset one another.

Market Outlook:

In the absence of clear positive drivers—such as new favorable industry policies, fluctuations in raw material costs, or increased demand—the domestic formic acid market is unlikely to break its current state of equilibrium in the short term. The market is expected to continue trading sideways with stable mainstream prices, and no significant upward or downward volatility is anticipated for the time being.

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