According to the Commodity Market Analysis System of Shengyi Society, formic acid prices have been mainly profit driven recently. As of August 18th, the benchmark price of 85% industrial grade formic acid in China was 3360 yuan/ton, an increase of 25.84% from the beginning of the month, a month on month increase of 40%, and a year-on-year increase of 21%.

Mainstream manufacturers adopt a limited supply strategy, resulting in a significant reduction in the supply side
The implementation of quantity control sales policies by mainstream domestic enterprises has led to continuous tightening of the market supply side, low operating rates of manufacturers, and historically low levels of formic acid inventory.
Parallel low demand and low inventory in formic acid market
The current price increase lacks substantial demand support, and domestic terminals are still purchasing according to their basic needs. The market trading atmosphere is stable, and the current inventory pressure may continue to accumulate. Coupled with the impact of the traditional off-season demand, there is no further upward momentum.
Enterprises still have plans to reduce production
At present, a major producer in Shandong Province is planning to reduce production due to important event preparations, resulting in a tight market supply situation.
According to data analysts from Shengyi Society, the tight supply situation is difficult to change. Shandong’s production restrictions will continue until the end of the event (expected in early September), coupled with support from export orders, prices may remain volatile at a high level. Specific changes in market supply and demand still need to be monitored.