Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic industrial grade 85% formic acid has shown a continuous upward trend recently. As of December 17th, the average price of formic acid was 2,950 RMB/ton, an increase of 6.31% compared to the same period last month at 2,775 RMB/ton, and an increase of 3.51% compared to the beginning of the month at 2,850 RMB/ton. It has been rising continuously for three months since September.

Analysis review

Supply side: This round of price increase was directly related to the shutdown and price protection of Luxi Chemical. The following figure showed several price adjustments made by Luxi Chemical since September 1st

Since May, the price of formic acid has been continuously falling. In order to stabilize the price, Luxi Chemical, the largest producer of formic acid in China, has chosen to reduce production and offer lower prices. Some of its facilities have been shut down, resulting in a sharp decrease in on-site supply and an increase in formic acid prices.

On the raw material side, the domestic methanol market was mainly on the rise during the week. Changes in Middle Eastern facilities may lead to a decrease in import volume, depletion of port inventory, shutdown of the Southwest natural gas to methanol plant, planned maintenance of the Zhongyuan Dahua 50 plant, and a decrease in supply from mainland China, resulting in an increase in methanol prices.

Market outlook

The formic acid data analyst from SunSirs believes that there was still positive support from the raw material methanol, coupled with a decrease in on-site supply, and formic acid prices were strongly supported. It is expected that there will fluctuate to be stronger in the short term, and specific market information still needs to be monitored.

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