According to the Commodity Market Analysis System of Shengyi Society, the price of formic acid has slightly increased recently. As of September 10th, the average market price of 85% formic acid in China was 2625 yuan/ton, with a weekly increase of 1.94%.

Low operating rate and reduced on-site supply

This week’s formic acid production rate was 54.29%, a decrease from last week. During the week, some mainstream formic acid enterprises had their facilities shut down, resulting in a narrow reduction in overall supply. In addition, some manufacturers were also in a shutdown state, and the restart time is yet to be determined. At present, the decrease in on-site supply provides strong support for the rise in formic acid market prices.

Downstream demand is average, with limited upward momentum

Recently, downstream demand for formic acid has increased significantly, with average shipments from distributors and a light trading atmosphere on site. The downstream dye industry is about to enter the peak season in September, with slow demand growth and a significant increase in dye factory orders, which may provide support for formic acid prices.

Insufficient cost support

The main reason for the decline in the raw material methanol market is macroeconomic weakness. Domestic methanol supply has recovered, import volume remains high, and port methanol inventory has accumulated. In addition, some downstream industries are still in the recovery stage, and demand has not yet recovered to a high level. The domestic methanol market is mainly experiencing a downturn.

Market forecast:

The upstream raw material market price of formic acid is weak, the on-site supply is low, and the downstream peak season is approaching. Under the combination of multiple factors, the formic acid market is expected to fluctuate.