Supply and Demand Dynamics Continue, Formic Acid Prices Rise

March 17th, according to reports

According to the commodity market analysis system: Recently, the price of formic acid has shown an upward trend. As of March 17, the benchmark price for industrial-grade 85% formic acid is 2,750 CNY/ton, which is a 10% increase from the same period last week (March 10), a 12.7% increase month-over-month, and a 17.29% decrease year-over-year.

Supply Side: Production Dynamics Evolve, Supply Volume Gradually Contracts

Recent fluctuations in the formic acid market supply have been significant, with adjustments in production plans becoming the core factor affecting market supply. In early March, some formic acid producers that had previously undergone maintenance gradually completed their work and resumed full-capacity production, leading to a relatively ample market supply. As the market progresses, the supply-side landscape is gradually changing. On one hand, companies that were previously operating at full capacity have slowed their supply pace due to factors such as production capacity constraints and equipment maintenance. On the other hand, the anticipated maintenance of several formic acid manufacturers has materialized, resulting in a reduction in the formic acid supply in China. This has led to an increased expectation of tight supply, providing support for price increases.

Demand Side: Shipment Trends Remain Positive

Formic acid downstream demand is generally robust, with a sustained positive shipping trend. Downstream purchases are following demand, with strong support from essential needs. The product distribution channels are smooth, and the shipping speed is steadily increasing, effectively driving the depletion of inventory for Chinese producers.

Formic acid data analysts believe: Recently, the formic acid market in China has shown a phased characteristic of "stabilizing and accumulating strength, slightly rising, and temporarily stabilizing for consolidation." Prices are likely to remain firm, and there is still potential for further increases. Specific developments still need to monitor changes in market supply and demand.