Adequate Supply, Stable Demand; Formic Acid Prices Remain Steady

November 10th, news

According to the commodity market analysis system, the recent price of 85% concentration formic acid in the Chinese market has remained stable: As of November 10, the benchmark price of formic acid is 2,830 CNY/ton, unchanged from last week.

Supply side: High and stable, with expectations of maintenance later on

Formic acid supply is generally operating at high capacity. The capacity utilization rate of production enterprises is nearly saturated, maintaining full-capacity production, and the overall supply capacity remains high, with ample market supply. Major factories and primary producers in the Liaocheng region plan to carry out equipment maintenance soon. Although the current supply has not been affected, this maintenance plan may have a phased impact on subsequent local supply. It is necessary to continuously monitor the progress of the maintenance and the actual scope of impact.

Demand Side: Rigid Demand Dominates, Steady Shipments

Demand has always been dominated by rigid procurement. Downstream enterprises' purchasing needs remain stable, with no significant fluctuations in the volume of goods shipped and steady inventory consumption. Although there is an expectation that a concentrated buying period may follow, potentially leading to a phased increase in demand, as of November 10, there has been no substantial increase in demand, which remains in a stable operating state.

Export Side: Orders Contract, Exports Decline

The export market has performed poorly, with the number of newly signed orders continuing to decline compared to earlier periods. Export volume is showing a downward trend, weakening its supportive role in the overall market and becoming one of the factors influencing market sentiment.

A formic acid data analyst believes that, considering both supply and demand dynamics as well as export market performance, the formic acid market is expected to maintain a balanced yet dynamic equilibrium in the short term. While there’s potential for supply disruptions due to maintenance at a major plant in Liaocheng, overall supply remains ample at present. Meanwhile, demand remains steady and resilient, and the impact of declining exports is relatively limited. As a result, formic acid prices are anticipated to continue their stable trend in the near term.