Price trend
According to monitoring data from SunSirs, as of March 28, the average price quoted by formic acid companies was 3,875.00 RMB/ton, an increase of 8.39% compared to March 1.
Analysis review
In March, the market price of industrial grade 85% formic acid in China was strong. In the first ten days, there was some cost support, the formic acid operating rate was around 75%, and the supply side recovered. However, the industry was collectively optimistic about the future, prices rose slightly and the market atmosphere was active. In mid March, there was little impact on the cost side, market mainly digested inventory, and downstream customers purchased on demand, the market was mainly stable. In late March, the cost support was acceptable, the operating rate decreased compared to the previous period, and the market supply contracted, supporting this price increase. The downstream follow-up was acceptable, and the market transactions were orderly.
Cost: For upstream sulfuric acid, on March 27, the reference price for sulfuric acid was 256.67 RMB/ton, up 1.32% compared to March 1 (253.33 RMB/ton); For upstream methanol, on February 24th and March 27th, the reference price of methanol was 2,581.67 RMB/ton, a decrease of 5.63% compared to March 1st (2,735.83 RMB/ton).
Market outlook
According to the formic acid analysts of SunSirs, the current cost side support is acceptable, the supply side support still exists, and the demand side is stable. It is expected that in the short term, the domestic industrial grade 85% formic acid market may mainly operate at a high level, and more attention needs to be paid to market news guidance.
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