Price trend

According to the Commodity Market Analysis System of SunSirs, domestic formic acid saw a slight increase in mid February. As of February 17th, the average price of 85% formic acid in China was 2,975 RMB/ton, an increase of 0.85% from 2,950 RMB/ton at the beginning of the month.

Analysis review

From the supply side perspective, mainstream formic acid enterprises were producing normally with little inventory pressure. Due to the long-term stable market situation, most manufacturers held a high price mentality and are unwilling to easily lower prices.

On the demand side, as the fertilizer use period approached, the enthusiasm for terminal pickup in Northeast and North China regions continued to increase. While the operating rate of compound fertilizer production enterprises was gradually increasing, the release of inventory was also accelerating. The demand for formic acid has also rebounded.

From the perspective of raw materials, the abundant supply of coal and natural gas resources and the loose supply of methanol raw materials have led to a steady increase in domestic methanol production, increasing supply pressure while downstream demand remains weak, resulting in significant accumulation of domestic social inventory. Against the backdrop of weak supply and demand structure, domestic methanol maintained a weak and volatile trend.

Market outlook

The formic acid data analyst from SunSirs believes that the demand side was improving, and there was an upward trend in domestic formic acid. However, the raw material side was weakening, and the transmission of upward momentum was insufficient. The price of formic acid has slightly increased, and it is expected that the market will operate steadily in the future. Specific attention still needs to be paid to market trends and changes in supply and demand.

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