The Game Between Supply and Demand Tends Toward Equilibrium; Formic Acid Ranges Sideways

April 7th, according to news,

According to the commodity market analysis system, the recent Chinese formic acid market has maintained a sideways consolidation trend, with stable market operations and steady prices. As of April 7, the benchmark price for 65% industrial-grade formic acid was 3,000 CNY per ton, up 22.45% month-over-month and down 11.76% year-over-year, with no significant fluctuations and a stable market focus.

Supply Side: Adjustments in Corporate Production Plans Support Price Stability

In the early period (March 31 to April 1), some production facilities in China were still under maintenance, and the situation of low inventory did not change, continuing to provide support to the market. On April 2, although most formic acid manufacturers in China had resumed production, they had not yet reached full capacity, and the pattern of low inventory continued, providing ongoing support and contributing to the stability of prices.

Demand Side: Performance is Stable, Driven by Essential Needs

Downstream enterprises in China show weak purchasing intentions and low enthusiasm, mainly focusing on acquiring and replenishing goods based on their immediate needs. There has been no large-scale concentrated procurement, and the bargaining power between supply and demand sides is tending towards equilibrium.

Future Market Prediction

Based on the SpotConnect system forecast, the current price is at a high level in both the short term and long term.

The current price moving averages are arranged in a complete bullish sequence (price > 10-day MA > 20-day MA > 30-day MA), indicating an upward trend over the medium term.

Overall, the upside for formic acid prices is limited, with ample support at the lower end. It is expected to continue in a sideways consolidation, with specific attention needed on the changes in market supply and demand.