September 14 news
According to the commodity market analysis system, the recent Chinese formic acid market has shown a stepwise upward trend characterized by "initial stability followed by an increase and then stabilization at a high level." The overall market activity has continued to improve, with the price center steadily rising. As of September 14, the benchmark price for industrial-grade formic acid was 2,400 CNY/ton, up 14.29% from 2,100 CNY/ton at the beginning of the month. Over the past week, the market has transitioned from an initial state of balanced supply and demand to a rising trend driven by a rebound in demand and cost support, ultimately stabilizing at a high level. The overall industry is showing a clear trend of stable and slightly strong operation, with a strong bullish sentiment in the market.
Prices have entered a steady two-phase upward trend, fully revitalizing market dynamics. Driven by the seasonal consumption boost ahead of the Mid-Autumn Festival and National Day holidays, downstream end-users’ expectations for stockpiling continue to rise, serving as the key catalyst behind this round of price increases. Even before the market rally officially kicked off, mainstream producers had already begun preparing in advance, collectively raising their ex-factory quotes, which directly pushed the market’s price center upward in the first phase, with the average transaction price climbing 4.55% to 2,300 CNY per ton. Following these price hikes, the market has not experienced any pullbacks; even though industry inventories have shown a slight uptrend, this has failed to exert downward pressure on prices. Instead, the continued release of downstream stockpiling demand has effectively offset the increase in inventory levels, further strengthening the market’s logic of maintaining higher prices.
Subsequently, market conditions rebounded once again, with prices breaking through the previous trading range. The average transaction price rose to 2,400 CNY per ton, and the daily price increase reached 4.35%, marking the second round of effective price hikes this week. This round of price increases is not driven by demand alone but rather by the combined positive effects from both the cost side and the demand side. On the cost side, rigid support has been established, firmly anchoring the bottom range for formic acid prices and effectively limiting downward room for further declines. Meanwhile, as the peak stocking season for the two major holidays approaches, downstream procurement demand continues to improve marginally, keeping the overall market sentiment strongly bullish. At the same time, producers have clearly expressed their willingness to hold prices and push for higher quotes, intensifying sellers’ reluctance to sell and further fueling the steady upward trend in prices.
In the later part of this week, the formic acid market in China has stabilized, with prices holding steady at a high level of 2,400 CNY/ton. There are no significant fluctuations in the market, and it has entered a phase of high-level digestion. The cost support remains strong, serving as the core foundation for market stability. The positive market sentiment driven by previous price increases continues, and the bullish mood within the market has not dissipated. Although prices have temporarily stabilized, there is still room for the release of downstream inventory demand. The supply and demand dynamics in the industry continue to improve, and the market still holds potential for further upward momentum.
Overall, the three core factors driving the current market strength are the node demand bonus from dual festival stockpiling, the rigid cost support, and the manufacturers' price-holding operations. The continuous improvement in the short-term supply and demand situation provides a solid fundamental guarantee for the price increase. Looking at the short-term market, the favorable factors for the formic acid industry have not yet dissipated, and the downstream stockpiling demand is expected to continue to be released. The cost support is stable, and the overall market will continue to operate steadily with a slightly strong trend, with the possibility of further price increases. Subsequently, it is necessary to closely monitor the progress of concentrated downstream stockpiling, fluctuations in raw material costs, and changes in industry inventory.
