According to the commodity analysis system of Shengyi Society, as of September 24th, the average quotation price of formic acid enterprises was 2675 yuan/ton, an increase of 1.9% compared to 2625 yuan/ton on September 1st at the beginning of the month; Compared with the same period last month on September 24th at 2750 yuan/ton, it decreased by 2.73%; Compared to the same period last year on September 24th, it decreased by 22.16%.

1、 Weakened cost support

The price of methanol, the main raw material, has fallen: As the main production raw material for formic acid, the price trend of methanol has a significant impact on the cost of formic acid. Recently, the methanol market prices have shown a fluctuating downward trend, leading to a weakening of cost support for formic acid producers. The unfavorable changes in cost have made formic acid producers more cautious in pricing, and even have to respond to market changes by lowering prices.

2、 Stable supply is the main focus

Overall sufficient supply: Although some formic acid production enterprises have equipment maintenance and production reduction, the overall capacity utilization rate is still high, and the market supply is relatively sufficient. This to some extent limits the upward space of formic acid prices.

3、 Poor performance on the demand side

Downstream industry off-season: The main downstream industries of formic acid include textiles, leather, pharmaceuticals, rubber, etc. These industries have weak purchasing intentions during the off-season, resulting in weak demand for formic acid in the market. The decrease in downstream demand has further exacerbated the supply-demand imbalance in the formic acid market.

Low enthusiasm for inquiry and procurement: Due to the off-season in downstream industries and low demand for formic acid, the enthusiasm for inquiry and procurement is generally low. This has led to significant shipping pressure for formic acid producers, who have to stimulate sales by lowering prices.

The formic acid data analyst from Shengyi Society believes that the current formic acid market is characterized by a stalemate in supply and demand, balanced production and sales, and no significant positive factors to support price increases in the short term. Therefore, it is expected that the formic acid market will continue to maintain a volatile trend and it is difficult to see a significant rebound.