SunSirs: The Formic Acid Market Was Temporarily Stable on September 22

Price trend

According to the data of SunSirs’ bulk list, as of September 22, the average price of formic acid companies' quotation was 2,066.67 RMB/ton, which was flat compared with the previous trading day, increased by 13.76% compared with the beginning of the month, and increased by 21.09%compared with August 22.

Analysis review

On September 22, the domestic industrial-grade 85% formic acid market was temporarily stable. The equipment of the enterprise was basically operating normally. The downstream pharmaceutical, rubber, leather, pesticide and other industries mainly purchased formic acid on demand. The transaction was fair. The overall market price was mainly stable and there was no obvious fluctuation.

Upstream caustic soda, domestic liquid caustic soda prices are operating at a weak price, upstream price awareness is strong, and downstream demand is weak. It is expected that the price of caustic soda in Shandong will be weak and stable in the later period, with little impact on formic acid.

Upstream liquid ammonia, this week (9.14-9.18), the domestic liquid ammonia market remained stable in most regions. The liquid ammonia in Hebei continued to maintain a steady state last week. The price of liquid ammonia in Shandong first fell and then rose. The price stabilized mainly during the weekend. According to the monitoring of SunSirs, in Shandong region, in the week of the 18th, liquid ammonia fell by 1.06%, and the mainstream market price was 2,750-3,000 RMB/ton, which had a small negative impact on formic acid.

Upstream sulfuric acid, the sulfuric acid market in Shandong was temporarily stable on September 21. The upstream sulphur market has risen slightly recently and the cost support is good, but the enthusiasm for downstream purchases is average, the supply of sulfuric acid is normal, and the ex-factory price of sulfuric acid fluctuates slightly in the future, which has limited impact on formic acid.

Upstream methanol, according to the monitoring data of the business agency, as of September 21, the average price of corporate quotations was 1,795 RMB/ton, which was 0.83% lower than that of last Friday (September 18) and increased 10.12%compared with the beginning of the month.

Market outlook

Formic acid analysts of SunSirs believe that the recent upstream caustic soda and sulfuric acid prices are mainly stable, and liquid ammonia has fallen slightly. At present, methanol is running lightly, cost support is relatively general, and downstream procurement is on demand. It is expected that in the short term, the industrial-grade formic acid market may operate steadily, and more attention needs to be paid to market news guidance.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.