Both Supply and Demand Surge, Formic Acid Prices Gradually Rise

April 1st News

According to the commodity market analysis system: The Chinese formic acid market has recently shown a stable trend with a sideways consolidation. The benchmark price for 85% formic acid remains steady at 3,000 CNY per ton, up 22.45% month-over-month and down 11.76% year-over-year. There have been no significant fluctuations, and the market supply and demand are tending towards equilibrium, with no clear price direction in the short term.

Supply Side: Maintenance + Low Inventory Provide Price Support

On March 25, although some manufacturers raised their prices based on their own operational conditions, the price adjustment was limited and did not significantly impact the overall market price system. The supply side showed signs of contraction, with China's overall formic acid inventory at a low level. This situation provided some support to the market, to some extent limiting the downward pressure on prices.

Demand side: There has been no large-scale hoarding or centralized purchasing.

Downstream enterprises have weak purchasing intentions, and their procurement activities are mainly based on immediate needs, without large-scale stockpiling or concentrated purchasing. The demand side has not formed an effective pull. The supply and demand forces tend to be balanced, which is the core reason for maintaining the market's sideways trend. It is comprehensively judged that the market will likely continue to maintain this operating pattern in the short term.

The formic acid data analyst believes that, considering previous market trends and the current supply-demand dynamics, China’s formic acid market is likely to continue trading sideways in the short term, with limited room for price fluctuations. Specific developments will still depend on the progress of plant maintenance, the recovery of downstream demand, and various positive and negative news.