Price trend

According to the monitoring data of SunSirs, the average price quoted by formic acid enterprises as of October 28 was 2,533.33 RMB/ton, down 27.62% from that of October 1, down 35.04% in a three-month cycle, and down 68.53% year on year.

Analysis review

In October, the market price of domestic industrial grade 85% formic acid fell sharply. From the supply and demand side, the enterprises started normally, the new installation lines had been opened, and the market supply had increased significantly. On the demand side, domestic downstream pharmaceutical, rubber, leather, pesticide and other industries followed up on demand, and export orders performed fairly well, but the market pressure was highlighted due to the increase of supply, inventory was gradually under pressure, enterprises were actively shipping, and prices were falling.

In terms of cost, the reference price of upstream caustic soda was 1,174.00 RMB/ton on October 27, a decrease of 5.17% compared with October 1 (1,238.00 RMB/ton); The upstream liquid ammonia market in Shandong stopped falling and stabilized on October 27; For upstream sulfuric acid, the domestic sulfuric acid market price was temporarily stable on October 27. On October 27, the reference price of sulfuric acid was 422.00 RMB/ton, up 42.57% compared with the price on October 1 (296.00 RMB/ton); the upstream methanol market continued to decline on October 27. On October 27, the reference price of methanol was 2,808.00 RMB/ton, a decrease of 6.79% compared with October 1 (3,012.50 RMB/ton). The price of upstream products rose and fell this month, with limited cost support for formic acid.

Market outlook

According to the formic acid analysts of SunSirs, at present, the main raw material methanol is mainly weak, the cost support is weak, the supply support is insufficient, and the demand performance is fair. The market transaction is mainly on demand. It is estimated that the domestic industrial grade 85% formic acid market may be weak and consolidated in the short term, and more attention should be paid to the market news guidance.

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