Major Chinese Factories Have Maintenance Plans, Formic Acid Prices Expected to Rise

September 01, News

According to the commodity market analysis system: Recently, formic acid has shown a fluctuating trend. As of September 1st, the benchmark price for 85% industrial-grade formic acid in China is 3,353 CNY per ton, up 25.59% month-over-month and 25.75% year-over-year.

Demand is expected to improve as the "Golden September, Silver October" period arrives, with downstream expectations in China possibly turning positive.

Foreign trade supply pressure has somewhat eased, with export orders shrinking on a month-on-month basis. In the Chinese market, as the "Golden September and Silver October" period approaches, the operating rates in downstream sectors such as pharmaceuticals are gradually recovering, which may increase the demand for formic acid. However, with the current price of formic acid at its highest point of the year, the willingness of end-users to purchase is becoming more cautious.

Major factories have maintenance plans, which may alleviate inventory pressure.

Market sources indicate that a major factory in Liaocheng, China, plans to conduct equipment maintenance this month. Due to this expectation, the high inventory of formic acid is likely to be relieved, and prices may rise.

Formic acid data analysts believe: With multiple favorable factors, the price of formic acid is expected to rise in China.