Price trend

In the first half of 2023, the domestic industrial grade 85% formic acid market first rose and then stabilized. According to the Commodity Market Analysis System of SunSirs, as of January 1, 2023, the average price industrial grade 85% formic acid quoted by domestic enterprises was 3,000.00 RMB/ton. As of June 30, the average price of formic acid was 3,875.00 RMB/ton, with a market increase of 29.17% within six months.

Analysis review

The overall trend of formic acid in the first half of 2023 can be divided into two stages:

Rising stage (January-March): The transaction price of formic acid in the market was around 3,000.00 RMB/ton in January. Before the Spring Festival, the supply side started construction at a high level, and inventory was under pressure. Downstream stocking enthusiasm was not good, and some enterprises reduced prices to destock. After the Spring Festival, mainstream enterprises experienced plant shutdowns and a decline in operating rates. In addition, the increase in raw material prices had strengthened cost support, and downstream demand was still acceptable. The mindset of the industry was improving, and the cost and supply side support for formic acid prices had increased in February. In March, the cost support was acceptable, with the market mainly digesting inventory and slightly increasing demand. In the late march, the supply side contracted and prices rose again, resulting in orderly market transactions.

Stable stage (April-June): The formic acid market remained stable at a high level in April, while downstream industries such as pharmaceuticals, rubber, leather, and pesticides bought as needed in May. The overall market trading remained unchanged, and merchants shipped according to market conditions. In June, the formic acid market continued to remain stable, with mainstream prices maintained at around 3,900 RMB/ton.

Upstream product: Upstream sulfuric acid. According to the Commodity Market Analysis System of SunSirs, the reference price for sulfuric acid was 192.00 RMB/ton on June 30th, a decrease of 33.02% compared to January 1st (286.67 RMB/ton); Upstream methanol, according to the Commodity Market Analysis System of SunSirs, the reference price for methanol on June 30th was 2,180.00 RMB/ton, a decrease of 19.21% compared to January 1st (2,698.33 RMB/ton).

Market outlook

Entering July, he formic acid market is mainly stable, and there is currently some support in the cost aspect. Market inquiries and transactions are just in needed. According to formic acid analysts from SunSirs, it is expected that the domestic industrial grade 85% formic acid market will be stable and wait-and -see in the short term, and more attention should be paid to market news guidance.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.