Dual Production Areas Have Maintenance Plans, Formic Acid Prices Rise Strongly

November 17, News

According to the commodity market analysis system: Recently, the price of formic acid has strengthened. As of November 17, the benchmark price for 85% industrial-grade formic acid in China was 2,910 CNY per ton, an increase of 2.83% compared to the same period last week (November 10), up 3.93% month-over-month, and up 4.86% year-over-year.

Core factor behind rising prices: Maintenance plans announced for two major production areas

A leading production company in Liaocheng is about to start a 30-day maintenance plan, and another major manufacturer in Feicheng will also carry out equipment maintenance at the end of this month. The simultaneous maintenance in both production areas will lead to a temporary reduction in market supply. From "maintenance is about to start" to "simultaneous maintenance in both production areas," and then to "maintenance postponed to late month," these three changes in expectations have dominated market sentiment. Although the current supply remains abundant, the expectation of maintenance has already provided substantial support to prices.

Downstream enterprises in China have consistently maintained a steady procurement pace, with inventory consumption remaining stable and no significant increase or decrease in demand. Major application industries such as pharmaceuticals, rubber, and leather have been purchasing according to their needs, and their acceptance of price increases is limited, which to some extent curbs large fluctuations in prices.

A formic acid data analyst believes that, in the short term, the market price of formic acid is likely to remain elevated at around 2,910 CNY per ton. If maintenance activities proceed as scheduled later this month, it could further intensify expectations of supply tightness. For now, it’s still essential to monitor developments at production facilities closely.