SunSirs: Supply Increased, and Formic Acid Market Price Decreased (October 19-24)
October 25 2022 14:09:40 SunSirs (John)
Price trend
According to the monitoring data of SunSirs, as of October 24, the average price of formic acid quoted by formic acid enterprises was 2,966.67 RMB/ton, down 13.59% compared with the price on last Wednesday (October 19), down 15.24% compared with the price on September 24, and down 23.93% in a three-month cycle.
Analysis review
Recently (10.19-10.24), the domestic industrial grade 85% formic acid market was weak, and the quotation of formic acid from enterprises fell to 2,600 RMB/ton on the 24th. From the perspective of cost, recently, the main raw material, methanol, was subject to finish in shock, and the upstream caustic soda, liquid ammonia and sulfuric acid ere mainly running weakly, with general cost support. From the perspective of supply and demand, enterprises started normally, new installation lines were opened, market supply increased significantly, downstream pharmaceutical, rubber, leather, pesticide and other industries mainly purchased on demand, and the pressure of inventory dragged down the formic acid market.
In terms of cost: the upstream caustic soda, according to the monitoring data of SunSirs, the price of caustic soda fell (10.17-10.21), the average market price in Shandong at the beginning of the week was about 1,350 RMB/ton, and the average market price in Shandong at the weekend was 1,318 RMB/ton, down 2.37%; The upstream liquid ammonia market was weak in Shandong on October 24; For upstream sulfuric acid, the domestic sulfuric acid market price fell on October 24; Upstream methanol, according to the monitoring data of SunSirs, the average price of domestic methanol market in East China ports rose from 2,862 RMB/ton to 2,894 RMB/ton from October 14 to 21. During the cycle, the price rose by 1.10%, 4.78% month on month and 27.65% year on year.
Market outlook
The formic acid analysts of SunSirs believe that the current cost support is limited and the demand performance is fair, but the market pressure is highlighted due to the increase of supply. In the short term, the domestic industrial grade 85% formic acid market may be sorted out weakly, and more attention should be paid to the change of raw material prices.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.
