SunSirs: Formic Acid Was Expected to Improve, and the Price Slightly Increased
September 11 2024 11:27:05 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, the price of formic acid has slightly increased recently. As of September 10th, the average market price of 85% formic acid in China was 2,625 RMB/ton, with a weekly increase of 1.94%.
Analysis review
Low operating rate and reduced on-site supply
This week's formic acid production rate was 54.29%, a decrease from last week. During the week, some mainstream formic acid enterprises had their facilities shut down, resulting in a narrow reduction in overall supply. In addition, some manufacturers were also in a shutdown state, and the restart time was yet to be determined. As of September 10, the decrease in on-site supply provided strong support for the rise in formic acid market prices.
Downstream demand was average, with limited upward momentum
Recently, downstream demand for formic acid has increased significantly, with average shipments from distributors and a light trading atmosphere on site. The downstream dye industry was about to enter the peak season in September, with slow demand growth and a significant increase in dye factory orders, which may provide support for formic acid prices.
Insufficient cost support
The main reason for the decline in the raw material methanol market was macroeconomic weakness. Domestic methanol supply had recovered, import volume remained high, and port methanol inventory had accumulated. In addition, some downstream industries were still in the recovery stage, and demand had not yet recovered to a high level. The domestic methanol market was mainly experiencing a downturn.
Market outlook
The upstream raw material market price of formic acid was weak, the on-site supply was low, and the downstream peak season was approaching. Under the combination of multiple factors, the formic acid market is expected to fluctuate.
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