Formic Acid Enters a Consolidation Phase After Reaching a Steady Rise

November 24th, according to news,

According to the commodity market analysis system: Recently, the price of formic acid has been stable. As of November 24, the benchmark price for 85% industrial-grade formic acid in China is 2,910 CNY per ton, unchanged from the previous week (November 17), with a month-on-month increase of 3.93% and a year-on-year increase of 2.11%.

Supply Side: Stable for Now, Maintenance Plans as Potential Variables

The supply side remained stable overall, with production companies maintaining normal operating rates. During this period, the market focus was on the dynamics of a large factory in Liaocheng: after suspending quotations on November 16, the factory resumed normal shipments on the 17th, with prices remaining at the level of the previous weekend. Although the shipment volume was average, it did not cause a substantial impact on the market supply.

The originally scheduled maintenance plan for a large factory in Liaocheng, which was set for mid-month, has been postponed to late month. Additionally, market sources indicate that another large factory is also planning maintenance in late month. If the maintenance plans of several large factories in late month proceed as scheduled, it may lead to a temporary supply contraction, becoming a key factor influencing the subsequent market supply situation in China.

Demand Side: Driven by Essential Needs, with Clearly Insufficient Growth Momentum

Demand remains weak, with the overall characteristic being "mainly driven by rigid demand and limited growth." As the recent procurement cycle comes to an end, the purchasing enthusiasm of end-users in China has declined, and they generally adopt a strategy of purchasing according to their needs, resulting in a relatively quiet market trading atmosphere.

Formic acid data analysts believe: There are no significant positive or negative news releases on both the supply and demand sides of the market, and prices may continue to operate steadily. In the medium to long term, it is necessary to closely monitor the implementation of major factory maintenance plans in the latter part of this month. If there is a temporary reduction in supply, it could disrupt the current balance. Specific developments still need to be observed in the market.