Supply and Demand Stable, Formic Acid Prices Running Steadily

December 2nd news

According to the commodity market analysis system: Recently, the price of formic acid has shown a stable trend. As of December 2, the benchmark price for 85% formic acid in China is 2,910 CNY per ton, unchanged from the same period last week (November 25), up 2.83% month-over-month, and down 0.51% year-over-year.

Stability Factors

Market inventories are at a moderate level, with supply and demand relatively balanced. There have been no instances of severe shortages or surpluses leading to significant price fluctuations in China.

Most companies maintained an overall steady shipping pace. Although shipment volumes varied slightly on certain dates, these fluctuations did not fundamentally disrupt the overall market supply-and-demand dynamics.

In the short term, there is a lack of clear drivers for either significant upward or downward movements, market sentiment remains relatively stable, and companies show steady willingness to quote prices.

Fluctuating Factors

A factory in Liaocheng has already started a one-month maintenance shutdown on December 1, and a factory in Feicheng is expected to undergo maintenance in December. The maintenance of both factories will to some extent reduce the market supply. If demand remains stable or increases during the maintenance period, it may lead to a market supply-demand imbalance, thus driving up prices. However, at the end of November, the market inventory showed a continuous accumulation trend. If the inventory accumulation rate accelerates, it may put some downward pressure on prices, offsetting part of the impact of the reduced supply due to maintenance.

Formic acid data analysts believe: Although a factory in Liaocheng, China has started maintenance, the initial impact of the maintenance on market supply has not yet fully materialized, and current inventory levels are at a moderate level, which can to some extent cushion the pressure of reduced supply. However, as the maintenance progresses, market supply will gradually decrease. If subsequent inventory does not continue to accumulate or demand picks up, there is a possibility of price increases. Specific developments still need to be monitored.