Price trend

According to the commodity analysis system of SunSirs, as of September 24th, the average quotation price of formic acid enterprises was 2,675 RMB/ton, an increase of 1.9% compared to 2,625 RMB/ton on September 1st at the beginning of the month; Compared with the same period last month on September 24th at 2,750 RMB/ton, it decreased by 2.73%; Compared to the same period last year on September 24th, it decreased by 22.16%.

Analysis review

Weakened cost support

The price of methanol, the main raw material, had fallen: As the main production raw material for formic acid, the price trend of methanol has a significant impact on the cost of formic acid. Recently, the methanol market prices had shown a fluctuating downward trend, leading to a weakening of cost support for formic acid producers. The unfavorable changes in cost had made formic acid producers more cautious in pricing, and even had to respond to market changes by lowering prices.

Supply was mainly Stable

Overall sufficient supply: Although some formic acid production enterprises had equipment maintenance and production reduction, the overall capacity utilization rate was still high, and the market supply was relatively sufficient. This to some extent limited the upward space of formic acid prices.

Performance of the demand side was poor

Downstream industry off-season: The main downstream industries of formic acid include textiles, leather, pharmaceuticals, rubber, etc. These industries had weak purchasing intentions during the off-season, resulting in weak demand for formic acid in the market. The decrease in downstream demand had further exacerbated the supply-demand imbalance in the formic acid market.

Low enthusiasm for inquiry and procurement: Due to the off-season in downstream industries and low demand for formic acid, the enthusiasm for inquiry and procurement was generally low. This had led to significant shipping pressure for formic acid producers, who had to stimulate sales by lowering prices.

Market outlook

The formic acid data analyst from SunSirs believes that the formic acid market was characterized by a stalemate in supply and demand, balanced production and sales, and no significant positive factors to support price increases in the short term. Therefore, it is expected that the formic acid market will continue to maintain a volatile trend and it is difficult to see a significant rebound.

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