Price trend

According to the Commodity Market Analysis System of SunSirs, as of June 28th, the average price quoted by formic acid companies was 3,875.00 RMB/ton, which was the same as the price on June 1st.

Analysis review

In June, the domestic industrial grade 85% formic acid market showed stable performance, with no significant changes in trading volume overall. Holders shipped according to the market, and enterprise quotations were mostly stable. The mainstream price remained around 3,900 RMB/ton. From a cost perspective: In June, the price of raw material sulfuric acid stabilized first and then increased, while the price of raw material methanol fluctuated within a narrow range. The cost support for the formic acid market was still fair. From the perspective of supply and demand, downstream industries such as pharmaceuticals, rubber, leather, and pesticides purchased mainly in demand, the market transactions was orderly and supply and demand were relatively balanced. The focus of negotiations in the formic acid market was stable.

Import and export: According to customs statistics, the monthly import volume of formic acid in China was 1,818 kilograms in May 2023, and the monthly export volume of formic acid in China was 19,787,080 kilograms in May 2023.

In terms of cost: Upstream sulfuric acid, according to the Commodity Analysis System of SunSirs, the domestic sulfuric acid market price increased significantly in June. The market price of sulfuric acid increased by 7.69% from 182.00 RMB/ton at the beginning of the month to 196.00 RMB/ton at the end of the month; Upstream methanol, according to the Commodity Market Analysis System of SunSirs, the reference price for methanol on June 27th was 2,114.17 RMB/ton, a decrease of 2.2% compared to June 1st (2,161.67 RMB/ton).

Market outlook

SunSirs’ formic acid analysts believe that there was some support on the cost side, downstream restocking was mainly on demand. The market trend was stable, and it is expected that in the short term, the domestic industrial grade 85% formic acid market may be mainly stable, and more attention should be paid to market news guidance.

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