Price trend

In May, the market price of industrial grade 85% formic acid in China fell. According to the Commodity Market Analysis System of SunSirs, as of May 28th, the average price quoted by formic acid companies was 2,937.50 RMB/ton, a decrease of 10.65% compared to the price on May 1st (formic acid reference price of 3,287.50 RMB/ton).

Analysis review

From the monitoring chart of SunSirs data, it can be seen that the industrial grade 85% formic acid market experienced an overall decline in May. In the first half of the month, the price of raw material methanol in the market rose and cost support increased, but demand support was weak. Downstream buying was flat, and inquiries and purchases were mainly in demand. Manufacturers accumulated inventory to promote transactions, and the focus of negotiations in the formic acid market declined. In the second half of the month, the raw material methanol market surged and fell, and cost support weakened from strong to weak. The supply side had sufficient supply of goods, but the demand follow-up was limited, resulting in a bearish supply and demand side. Enterprises were actively selling at a profit margin, and the formic acid market had stabilized after a decline.

Market outlook

SunSirs’ formic acid analysts believe that the cost side had limited market impact, and downstream users followed up on dips on demand. The market atmosphere was average, and it is expected that in the short term, the domestic industrial grade 85% formic acid market may operate steadily on a watch-and-wait basis, and more attention should be paid to market news guidance.

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