SunSirs: The Formic Acid Market Was Mainly Stable in January

Price trend

According to the Commodity Market Analysis System of SunSirs, 85% of the domestic industrial grade formic acid market operated steadily in January. As of January 20th, the price of 85% formic acid was 3,000 RMB/ton, an increase of 1.69% from 2,950 RMB/ton on January 1st; Compared to the price of 3,150 RMB/ton during the same period last year, the price decreased by 1.76%.

Analysis review

In January, the domestic market price of 85% industrial grade formic acid was roughly around 3,000 RMB/ton. Upstream methanol was weak and fluctuating, while downstream markets were average, with a strong wait-and-see atmosphere. Enterprise quotations were mainly at 3,000 RMB/ton. As the Spring Festival approaching, the cost impact was not significant, and inventory was under pressure. Downstream stocking enthusiasm was poor, and some companies had lowered prices to reduce inventory. After the holiday, it is expected that the market will remain cautious and the price of formic acid will remain stable.

In terms of cost, the domestic methanol production rate was high and the output was increasing, while downstream demand enterprises faced significant cost pressure and limited demand growth. In addition, factors such as high port inventory and increased arrival forecasts may exert some pressure on market prices.

Market outlook

According to the formic acid data analyst from SunSirs, the upstream of formic acid was temporarily under pressure, while downstream users maintained their demand for purchasing. It is expected that 85% of industrial formic acid will operate stably in the short term, and specific market information still needs to be monitored.

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