Formic Acid Upward Cycle Ends as Scheduled

April 20th, news from China:

According to the commodity market analysis system: Recently, the price of formic acid has shown a weak and stable trend. As of April 20, the benchmark price for 85% industrial-grade formic acid in China is 2,800 CNY per ton, unchanged from the previous period, and down 17.65% year-over-year.

Fundamentals are well-supplied, and manufacturers have lowered their quotes.

The supply of formic acid has consistently remained ample, with a stable supply of sources. Although there has been no shortage in supply, the overall upward momentum is lacking, and the support for prices is relatively weak—this is one of the key factors making it difficult for prices to rebound. Meanwhile, although the industry’s overall inventory has been supported by low levels, recent sluggish demand has led to an accumulation of market inventories, further intensifying downward price pressure.

Demand performance is lackluster, with downstream enterprises in China showing weak purchasing intentions, mainly focusing on essential purchases. There has been no large-scale concentrated procurement, making it difficult to effectively boost prices. In terms of exports, most are deliveries of previous orders, with very few new orders, unable to provide strong support for the market. The wait-and-see sentiment in the downstream market has continued to rise after the earlier price cuts, leading to a slowdown in manufacturers' shipping pace and an increase in inventory pressure for enterprises, further driving down prices.

Some manufacturers have proactively lowered their prices to prepare for the upcoming May Day holiday and to seize more orders during the current period of decent profits, which has become an important factor in the initial slight decline in prices.

SpotCom Forecast

SpotCom predicted on April 13, 2026, that the price of formic acid may remain weak and stable. Link: Formic acid is currently showing a crossover of moving averages, with limited room for increase, which aligns with the current market situation in China.

SpotCom price moving average shows: the short-term moving average (red 10-day moving average) has crossed below the long-term moving average (blue 20-day moving average), indicating a significant downward momentum in prices.

Considering both price and location, the current price is at the long-term median level, and it is expected that formic acid prices will continue to remain weak but stable.