Supply Tightness Leads to Rising Formic Acid Prices in China

August 4th news

According to the commodity market analysis system: Recently, the price of formic acid has shown an upward trend. As of August 4th, the benchmark price for 85% industrial-grade formic acid in China is 3,100 CNY per ton, up 29.17% month-over-month and 13.76% year-over-year.

Supply and demand support drives price increases

Supply side: Production manufacturers continued to control output in the early stage, resulting in tighter supply. Currently, market sources are scarce.

Demand side: Export demand is increasing, and currently we are in an export cycle, leading to tight market inventory.

Raw material methanol fluctuates.

The Chinese methanol market is showing signs of recovery, with olefin plants in the northwest increasing their external purchases. Coupled with some facilities still undergoing maintenance and low inventories among enterprises, upstream companies are holding firm on prices and shipping goods, while downstream companies are following suit passively.

Formic acid data analysts believe: Currently, the supply in the formic acid market in China is tight, and there is still upward momentum. It is expected that the price of formic acid will continue to rise, but specific developments still need to be monitored based on changes in the market conditions.