Price trend

According to the Commodity Market Analysis System of SunSirs, formic acid showed an upward trend in early August. As of August 5th, the market price of formic acid was 2,775 RMB/ton, an increase of 100 RMB/ton compared to the same period last month at 2,675 RMB/ton.

At the same time, the domestic price of rebar continued to decline, and although these two products may seem unrelated, they are actually closely related.

Analysis review

The largest producer of formic acid in China is Luxi Chemical, with an annual output of 400,000 tons and a market size of over 50%. The second largest producer is Asde Technology, whose formic acid production capacity ranks second in China and third in the world, with an annual output of 200,000 tons. The Asde production plant is the world's first converter gas to formic acid plant, using converter gas from Shiheng Special Steel Group Co., Ltd. as raw material. The by-product converter gas from Shiheng Special Steel is about 45,000Nm³/h, and after dust removal, compression, desulfurization, dehydration, deoxygenation, decarbonization and PSA processes, the product gas (18,200 Nm ³/h, with a carbon monoxide content of 98.5%) is obtained, which is used for the production of formic acid synthesis.

Recently, steel prices had been continuously declining. On July 29th, a 1,350m³ blast furnace at Shiheng Special Steel began maintenance, affecting an average daily output of about 4,000 tons of molten iron. The resumption time was yet to be determined. It is precisely for this reason that the supply of Asde formic acid had decreased, leading to an increase in formic acid prices.

Market outlook

The formic acid data analyst of SunSirs believes that although the production reduction of Asdeti had slightly increased the price of formic acid, the market supply of formic acid was sufficient and there will be no large-scale shortage. It is expected that the formic acid market will fluctuate in the short term.

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