Recent Stable and Slight Increase in Formic Acid Prices in China

October 28th, according to news

According to the commodity market analysis system: Recently, the price of formic acid in China has shown a trend of stabilizing first and then rising. As of October 28, the benchmark price for 85% industrial-grade formic acid in China is 2,830 CNY per ton.

Premium restocking drives short-term volatility

Last week (10.20-10.24), product prices remained stable at 2,800 CNY/ton, and market prices were firm. This week, there has been a local premium, with some end buyers restocking at 2,830 CNY/ton. The earlier price stability was mainly supported by the balance between ample supply and weak demand. The slight price increase later on was related to concentrated procurement and stockpiling by downstream buyers before the price hike, which is a short-term market trend driven by a phased release of demand.

Supply-and-demand dynamics: Supply is ample and stable, while demand drives the market pace.

Supply side: High-load production supports adequate inventory, with formic acid supply remaining stable and abundant, and the inventory level maintained at around 60%; Demand side: Overall performance is weak, but rigid demand procurement has been released. Due to potential price increase factors in the market, downstream manufacturers have concentrated their purchases, driving a slight rise in prices.

Formic acid data analysts believe: Due to market rumors that a large enterprise in Liaocheng, China has maintenance plans, although the specific implementation time has not been confirmed, this has led to concentrated procurement by downstream buyers in the short term. As the procurement demand is fully released, the market will return to the normal state dominated by rigid demand. It is expected that the price of formic acid will continue to operate stably. However, it is still necessary to pay attention to the changes in market supply and demand, as well as the maintenance plans of manufacturers.