SunSirs: The Demand Side Improved and the Formic Acid Market Rose (September 1-16)
September 18 2020 11:57:02 SunSirs (John)
Price trend
According to the data of SunSirs’ bulk list, as of September 16, the average price of formic acid companies was 2,066.67 RMB/ton, an increase of 13.76% compared with the beginning of the month, and an increase of 20.39% compared with August 16.
Analysis review
Recently, the domestic industrial grade 85% formic acid market has risen. Factory equipment is basically operating normally, the sales of the company are acceptable, and the improvement in demand drives the formic acid market to rise.
Upstream caustic soda, terminal demand is limited, caustic soda is operating weakly. According to the monitoring data of SunSirs, the price of caustic soda is mainly weak and stable. The average price of the Shandong market in early September was 475 RMB/ton, and the average market price in mid-September was 452.5 RMB/ton, and the price dropped by 4.74%. Upstream liquid ammonia, according to the monitoring data of SunSirs, as of September 16, the average price of the company's quotation was 3,100 RMB/ton, which was 0.85% lower than the beginning of the month (3,126.67 RMB/ton). Upstream sulfuric acid, according to the monitoring data of SunSirs, the price of sulfuric acid in the Shandong area temporarily stabilized on September 16, and was the same as the price on September 14. Although the upstream sulphur market has risen slightly recently and the cost support is good, the downstream procurement enthusiasm is average and the supply of sulfuric acid is normal. Upstream methanol, according to the monitoring data of SunSirs, as of September 16, the average price of corporate quotations was 1,807.50 RMB/ton, an increase of 10.89% compared with the price at the beginning of the month (1,630.00 RMB/ton). Downstream pharmaceuticals, rubber, leather, pesticides and other industries purchase goods on a single order basis according to market demand.
Market outlook
Formic acid analysts of SunSirs believe that the recent upstream liquid ammonia and sulfuric acid prices have not fluctuated greatly, and the weak operation of caustic soda has limited impact on formic acid. Rising methanol prices have provided some support for formic acid, and downstream demand has improved compared with the previous period. It is expected that in the short term, the industrial-grade formic acid market may continue to operate strongly.
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