Formic Acid Prices Stabilize After Declining Post-Holiday

October 14, News

According to the commodity market analysis system: After the holiday period, 85% of China's industrial-grade formic acid has shown a trend of initial decline followed by stabilization. As of October 14, the price stood at 2,800 CNY per ton, down 9.68% from the previous week but up 0.9% year-on-year.

Supply and Demand Drive Prices

Currently, the core contradiction in the formic acid market lies in weak demand. Downstream sectors—such as pesticides, leather, and dyeing industries—have yet to see any substantial improvement, leading to persistently low purchasing activity and continued downward pressure on prices. Meanwhile, inventory levels on the supply side remain at a manageable mid-range level, making it difficult to disrupt the current balance between supply and demand in the short term.

The market has potential supply variables.

According to market news: A large production enterprise in Liaocheng may initiate a maintenance plan. If this maintenance plan is carried out as scheduled and the scale of maintenance is large with a long cycle, it could lead to a tightening of supply in the local area, thereby providing some support to market sentiment and prices; however, the information has not been confirmed yet.

The formic acid data analyst believes: After October, the formic acid market in China will be in a state of "stable fundamentals + potential variables to watch," with prices generally remaining stable. In the short term, it is still necessary to pay attention to the recovery of downstream demand and the specific progress of the maintenance plans of enterprises in Liaocheng; these two factors will be key to breaking the current price deadlock. It is expected that, in the absence of clear drivers, the price of 85% concentration formic acid will continue to fluctuate around 2,800 CNY/ton.