Price trend

According to the Commodity Market Analysis System of SunSirs, the domestic formic acid market has maintained a high and stable operation recently. As of March 24th, the average price of industrial grade 85% formic acid in China was 3,325 RMB/ton, an increase of 12.7% from 2,950 RMB/ton at the beginning of the year and an increase of 0.76% from 3300 RMB/ton in the same period last year, which is at a high level for the year.

Analysis review

In terms of raw material methanol: Inner Mongolia Jiutai, Sinopec Great Wall, Inner Mongolia Rongxin units were on maintenance; Shandong Mingshui plant reduced production; Restoration of oil facilities in Inner Mongolia Xinao, Yunnan Yuntianhua, Jiangyou Wanli, Xinjiang Guanghui, and Xianyang. The overall loss exceeded the recovery amount, and the utilization rate of production capacity decreases. The supply of methanol was affected by favorable factors.

From the perspective of supply and demand, apart from the production reduction by AstraZeneca, formic acid manufacturers maintained their operating levels, and the on-site spot supply was average, which provided support for formic acid prices. On the demand side, downstream demand for formic acid has remained relatively stable with no significant increase in demand, and there was tempoorarily no favorable support for formic acid market prices on the demand side.

Market outlook

The formic acid data analyst from SunSirs believes that there was positive support on the formic acid supply side, but downstream procurement enthusiasm was difficult to improve. It is expected that the formic acid market price will remain stable at a high level, and specific changes in market supply and demand still need to be monitored.

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