Supply-side Production Cuts Drive Formic Acid Prices Soaring in China

August 11th, news

According to the commodity market analysis system: Recently, the price of formic acid in China has risen rapidly. As of August 11, the benchmark price for 85% industrial-grade formic acid in China was 3,550 CNY per ton, an increase of 32.96% from 2,670 CNY per ton at the beginning of the month, a month-on-month increase of 47.92%, and a year-on-year increase of 27.93%.

Mainstream manufacturers adopt a limited supply strategy, significantly reducing output on the supply side.

Chinese mainstream companies are implementing a controlled sales policy, leading to a continuous tightening of the market supply. Manufacturers' operating rates are low, and formic acid inventories are at historically low levels.

Domestic demand is relatively weak while external demand remains strong, leading to a tightening supply-demand situation.

Regarding domestic demand, apart from essential production procurement maintaining a regular pace, downstream enterprises generally adopted cautious purchasing strategies, leading to a more rational market trading atmosphere. Relevant data shows that China's total formaldehyde consumption in the first half of 2025 was approximately 136,000 tons, down by 5.0% year-on-year.

In terms of foreign demand, China's formic acid is mainly exported to regions such as the Netherlands, Turkey, India, Vietnam, and Russia. Recently, export performance has been strong, with large factories in Shandong already scheduling foreign trade orders until September.

Formic acid data analysts believe: Recently, the tight supply of formic acid coupled with the continuous release of export demand has led to a constant rise in market prices. As major manufacturers still maintain a low inventory strategy, and export orders provide strong support, the price of formic acid is expected to remain at a high level with fluctuations in the short term. Specific trends will still need to be monitored based on changes in market supply and demand.