SunSirs: The Combination of Upstream and Downstream Bearish Factors Had Led to a Downward Trend in the Price of Calcium Formate
May 27 2024 15:33:29 SunSirs (John)
Price trend
This week (5.18-5.23), the price trend of industrial grade calcium formate has declined. According to the Commodity Market Analysis System of SunSirs, as of May 23, the average price of industrial grade 98% calcium formate in China was 3,440.00 RMB/ton. Compared with May 16 (the reference price of calcium formate was 3,640.00 RMB/ton), the price decreased by 200.00 RMB/ton, a decrease of 5.49%. Supply increased while demand decreased, creating a strong bearish atmosphere in the market, with most transactions being for essential purchases.
Analysis review
Supply side
Recently, the domestic industrial grade 85% formic acid market had been experiencing a downward trend. The main raw material methanol market first rose and then fell, with strong cost support. The supply and demand faced a certain bearish situation in the market, with sufficient supply of goods, but limited follow-up on the demand side. Downstream buyers mainly chose to buy at lower rigid demand, and the intention of holders to offered discounts and took orders had increased. The focus of negotiations in the formic acid market had declined. On the 22nd, the mainstream quotation range for industrial grade 85% formic acid enterprises was between 2,600-3,000 RMB/ton. As of May 22, the average price quoted by domestic industrial grade 85% formic acid enterprises was 2,937.50 RMB/ton, a decrease of 7.11% compared to last Thursday's price.
Market outlook
SunSirs calcium formate analysts believe that the current industrial grade calcium formate market was facing severe sales pressure, and the market situation was showing a trend of profit giving operation. Against the backdrop of weak cost support, the market price of industrial grade calcium formate may continue to fluctuate and decline in the short term. Due to the dual impact of increased supply and relatively flat downstream demand, some calcium formate factories had seen an increase in inventory levels recently, and sales pressure was gradually emerging. Analysts believe that this trend may continue for a period of time, and market participants need to closely monitor market dynamics to cope with potential price volatility risks.
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