SunSirs: The Downstream Demand for Formic Acid in October Was Average, and Prices Were Running Steadily
November 01 2024 10:22:12 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs, as of October 31st, the average quotation price of domestic industrial grade 85% formic acid enterprises was 2,775 RMB/ton, an increase of 3.74% from 2,675 RMB/ton at the beginning of the month, and basically stable operation.
Analysis review
Raw material methanol continued to be weak, with limited upward momentum
After a period of significant increase, the price of raw material methanol had returned to a weak market due to factors such as capacity expansion, higher operating rates, and lower prices of raw material coal. At the end of the month, although there was a slight rebound, the downstream ability to chase higher prices was relatively limited, resulting in a limited increase in methanol prices. Weakened support for formic acid.
The downstream demand was average, and the delivery effect was poor
The formic acid market showed a trend of downstream demand maintaining basic essential procurement, low purchasing enthusiasm, poor delivery performance of cargo holders, and sufficient on-site supply. These factors collectively led to a stable formic acid market trend.
Market outlook
The northern heating season in November is approaching, and the demand for coal in power plants is gradually releasing, which may provide some support for coal prices and make them operate steadily to strong trend. However, the transmission effect of this impact on the methanol market may be relatively limited. The main reason is the stable operation of methanol production facilities and the gradual release of new production capacity. Therefore, in the context of abundant supply, it is difficult for methanol prices to experience a significant increase. There are no favorable factors on the formic acid raw material side.
The formic acid data analyst from SunSirs believes that the downstream demand for formic acid is poor, coupled with relatively loose spot supply on the market and no favorable support from the raw material side. It is expected that the formic acid market price will remain stable and weaker next month, and it is necessary to continue to pay attention to the later trend of raw material prices and the situation of downstream manufacturers receiving goods.
If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.
