Stable price of calcium formate, market wait and see

This week (4.16-4.24), the market for calcium formate remained generally stable. According to the Commodity Market Analysis System of Shengyishe, as of April 24th, the average price of industrial grade 98% calcium formate in China is 3807.50 yuan/ton, which is basically the same as last week’s price.


Trend of raw material formic acid:


Recently, the formic acid market has remained stable with little movement, and there has been an increase in market negotiation space. At this stage, the market price of raw material methanol is mainly rising, while raw material sulfuric acid is generally stable, with increased cost support. The supply side support is average, with some companies offering discounts to facilitate transactions, and downstream industries mainly supplementing positions at appropriate prices according to demand. The trading atmosphere in the formic acid market is still good, and companies ship according to the market. The mainstream quotation range is between 3100-3400 yuan/ton.


From the perspective of downstream products in the industrial chain:


Calcium formate, as a commonly used early strength agent to improve the early strength of cement, is widely used in dry powder mortar. It has the performance of accelerating hydration and improving the early strength of mortar, especially at low temperatures. Calcium formate can significantly improve the early strength of mortar.


According to the commodity market analysis system of Business Society, cement in East China has recently experienced a weak decline, with prices at 298.00 yuan/ton at the beginning of the week and 304.00 yuan/ton at the end of the week, an increase of 2.01% and a month on month decrease of 1.30%. The current price has dropped by 27.96% year-on-year.


From January to February 2024, the national real estate development investment was about 1.18 trillion yuan, a year-on-year decrease of 9.0%, which is 0.6 percentage points narrower than that of January to December 2023; Among them, residential investment was 882.3 billion yuan, a decrease of 9.7%. From January to February, the construction area of real estate development enterprises reached 6.669 billion square meters, a year-on-year decrease of 11.0%; The newly constructed area of housing is 94.29 million square meters, a year-on-year decrease of 29.7%. Among them, the newly started residential construction area decreased by 30.6%. In recent years, real estate investment has gradually declined, and infrastructure demand is difficult to hedge against the impact of the real estate downturn. The support for the cement market is weak.


At present, the domestic calcium formate market is showing a trend of weak domestic demand, and the downstream real estate industry continues to show a weak trend. Insufficient demand for industrial grade calcium formate has led to low market trading activity. At present, the price of calcium formate is around 3800 yuan/ton, and the market price is relatively stable, but lacks obvious upward momentum.


Business Society calcium formate analysts believe that the short-term changes in cost and demand have limited impact on the market trend of calcium formate. Market participants are mostly wait-and-see, and it is expected that the price of calcium formate will consolidate and operate in the near future. More changes need to pay attention to market news guidance.