September 20th report:
According to the commodity market analysis system: Recently, the price of formic acid has shown a continuous upward trend. As of September 20th, the benchmark price for industrial-grade formic acid is 2,500 CNY/ton, an increase of nearly 20% from 2,100 CNY/ton at the beginning of the month. The market trend is supported by the rigid cost base, coupled with the expectation of pre-holiday inventory buildup, breaking away from the previous stable and stagnant pattern, achieving a phased price increase, and overall showing a core trend of stability with a slight upward bias.
Traditional centralized procurement window opens in China
As the traditional concentrated purchasing window approaches ahead of the dual festivals, combined with the rigid bottom support from raw material costs, the formic acid market in China is strongly supported at the bottom, effectively preventing the risk of price drops and laying a solid foundation for future price increases.
As pre-holiday stocking activity continues to pick up and favorable market factors converge, the formic acid market has entered a phase of upward momentum. The average transaction price in mainstream markets has successfully broken through the previous stable range, climbing to 2,500 CNY per ton—a single‑session increase of 4.17%, marking a key turning point in last week’s market dynamics. This price hike is not the result of short‑term speculation but rather the combined effect of multiple market drivers. On the cost side, production costs remain firm, and manufacturers continue to face pricing pressures, prompting strong willingness to support prices and push them higher, with proactive adjustments to market quotations leading the overall trend upward. Meanwhile, downstream demand for pre‑holiday inventory replenishment is gradually materializing, with modest increases in rigid‑demand orders, breaking the earlier pattern of sporadic, low‑volume trading. This shift has brought about a temporary improvement in supply‑demand balance, directly propelling spot prices for formic acid steadily higher and significantly reviving the overall trading atmosphere.
The logic of the formic acid market trend is clear, showing characteristics of a "solid bottom, upward shift in focus, and stability at high levels." Although short-term downstream demand has not shown explosive growth, it has consistently been dominated by rigid demand procurement, with room for improvement in acceptance of higher prices. However, the two core benefits of cost support and pre-holiday inventory expectations have driven the market trend for the entire week, allowing the market to completely break free from the previous sideways stagnation and achieve a reasonable price increase. Overall, there are no negative factors disrupting the market, and the industry's sentiment for maintaining prices is strong, with stable market operations.
Looking ahead, as the inventory preparation window for the dual festivals continues to advance, downstream demand is expected to further recover. Coupled with the ongoing support from the cost side, the Chinese formic acid market is likely to maintain a stable and slightly strong operating trend, with a high probability of prices remaining stable at a high level. The possibility of significant price fluctuations in the short term is extremely low, and the market will continue to maintain a steady operating pattern. Specific developments will still need to closely follow changes in supply and demand.
