According to the Commodity Market Analysis System of Shengyi Society, the formic acid market has been operating steadily recently. As of October 20th, the benchmark price of 85% industrial grade formic acid in China was 2800 yuan/ton, which was unchanged from last week (October 13th), a month on month decrease of 9.68%, and a year-on-year increase of 0.9%.

At present, the market is in a state of weak supply-demand balance
From the supply side perspective: Currently, domestic production facilities are operating at high loads, with leading enterprises adopting low inventory strategies. Due to the pressure of external raw material procurement and high inventory pressure, other enterprises have maintained an overall inventory of 60-70% in the industry. Upstream methanol is affected by high coal prices and rising natural gas costs, with limited downward space, which provides certain cost support for formic acid.
From the demand side perspective, the overall downstream demand for formic acid is weak, with more on-demand procurement and a wait-and-see attitude from intermediaries. The market trading atmosphere is light, and the shipment volume continues to be low.
There are key variables in the market
Market news shows that a large formic acid production enterprise in Liaocheng may start equipment maintenance in the near future, but the plan has not yet been officially confirmed. If the maintenance is implemented as scheduled and on a large scale with a long cycle, it may lead to a tightening of local supply, which will support market sentiment and prices. Historical data shows that the market was briefly optimistic in early September due to the expected maintenance, but the subsequent plan was not executed as scheduled, resulting in a price reduction of 120 yuan/ton. Therefore, the progress of this maintenance is related to the price trend of formic acid.
The formic acid data analyst from Shengyi Society believes that formic acid is expected to maintain its current market trend in the short term, and specific attention needs to be paid to whether major manufacturers’ maintenance plans can be implemented.