August 17th, according to news,
According to the commodity market analysis system, the recent 85% industrial formic acid market in China has shown a pattern of initial stability followed by an increase, and then a sideways consolidation. As of August 17, the benchmark price for 85% industrial grade formic acid was 1900 CNY/ton, down 2.7% from the beginning of the month. The market is experiencing intense bullish and bearish competition, with prices influenced by inventory levels, export orders, and the progress of facility restarts, but overall, it has not broken out of a weak equilibrium.
At the beginning of the market trend, the spot price of formic acid remained stable at around 1800 CNY per ton. The downstream terminals in China have not yet shown significant recovery, with industries such as leather, pharmaceuticals, and pesticides mainly engaging in rigid demand procurement, resulting in a generally flat domestic demand. However, the overall inventory of production enterprises is at a low level, and previous plant maintenance has led to a reduction in supply, providing a bottom support for the spot price. Enterprises prioritize fulfilling previously signed orders when shipping. Although some maintenance facilities are gradually being restarted, the new supply has not yet fully impacted the market. The advantage of low inventory allows the market to stabilize temporarily, and the market enters a phase of dynamic supply and demand competition.
Subsequently, the market experienced a noticeable rally, with the average transaction price of 85% formic acid rising to 1,900 CNY per ton—a price increase of 5.5%. This round of price hikes was not driven by domestic Chinese demand; rather, the core drivers came from two key factors: first, the continued low inventory levels at factories, which have kept spot supply tight; and second, strong export orders, as growing external demand has effectively absorbed some of China’s production capacity, thereby boosting spot quotations.
After the price surged, the market quickly entered a sideways consolidation phase, with quotes stabilizing at 1900 CNY/ton and not rising further. The main constraint is the lack of sustained support from positive factors. Downstream demand in China is limited, and there is a lack of continuous domestic demand to further boost the market. The pricing attitude of producers has become cautious and conservative, choosing not to actively push prices higher. Market transactions have returned to a rational level, and the overall market is maintaining a weak balance.
Looking ahead, there is a risk of supply-side pressure being released, with the incremental production from previously shut-down facilities gradually entering the market. If domestic demand does not see substantial improvement, relying solely on inventory and exports will be insufficient to sustain price increases, and formic acid still carries some downward expectations. The future market trend will depend on the recovery of downstream operations in China, the sustainability of export orders, and the pace of new supply releases.
