Formic Acid Shows Moving Average Crossover, Upward Momentum Limited

April 13 News

According to the commodity market analysis system: Recently, the price of formic acid in China has been stable. As of April 17, the benchmark price for 85% industrial-grade formic acid is 3,000 CNY per ton, an increase of 15.38% month-over-month and a decrease of 11.76% year-over-year.

Supply and demand market, relatively balanced

Supply-wise, the current market has ample supply, with most formic acid manufacturers in China having resumed production. Although they have not yet fully reached full capacity, the overall supply capacity can meet market demand. Coupled with the fact that the industry's overall inventory is at a low level, this provides some support for price stability. On the demand side, performance is mediocre, with downstream enterprises in China showing weak purchasing intentions, mainly focusing on meeting essential needs and replenishing stocks, without any large-scale concentrated procurement activities, thus having a limited effect on driving the market. However, the export market still retains some momentum, with export orders providing phased support to the market situation. Under the combined influence of multiple factors, the market as a whole shows a stable operating trend.

Spot market trend forecast:

According to the SpotCom price curve, it can be seen that the current daily, 10-day, and 20-day moving averages of formic acid have overlapped, indicating that the Chinese market has entered a sideways consolidation phase.

According to the spot market five-level position, the current formic acid price in China is at a high level, with limited room for further increases.

Overall, the current market for formic acid is characterized by abundant supply, weak demand in China, supportive exports, and low inventory levels—all of which are interacting to keep prices stable. Looking at the spot market, the 10-day moving average has recently overlapped with the 20-day moving average, signaling that the market has reached an inflection point. Given the high price level, there is limited room for further upward movement, and formic acid prices are likely to remain weakly stable.