According to the commodity market analysis system of Shengyi Society, 85% of industrial grade formic acid in China showed a stable operation trend after the holiday. As of October 14th, Shengyi Society’s 85% industrial grade formic acid was 2800 yuan/ton, a month on month decrease of 9.68% and a year-on-year increase of 0.9%.
Supply and demand dominant prices
The core contradiction in the current formic acid market lies in weak demand, and downstream industries (such as pesticides, leather, printing and dyeing, etc.) have not shown substantial improvement. Purchasing enthusiasm continues to be low, which has suppressed prices. At the same time, the supply side inventory is at a median controllable level, and the supply-demand balance is difficult to break in the short term.
There are potential supply variables in the market
According to market news, a large production enterprise in Liaocheng may launch a maintenance plan. If the maintenance plan is implemented as scheduled and the scale and cycle of the maintenance are large, it may lead to a tightening of supply in some areas, which will have a certain supporting effect on market sentiment and prices; But the current news has not been confirmed.
The formic acid data analyst of Shengyi Society believes that after October, the formic acid market will be in a state of “stable fundamentals+potential variables to be observed”, and the overall price will mainly operate steadily. In the short term, it is still necessary to pay attention to the recovery of downstream demand and the specific progress of maintenance plans for Liaocheng enterprises. These two factors will become the key to breaking the current price deadlock. It is expected that in the absence of clear drivers, the price of 85% concentration formic acid will continue to fluctuate within the range of around 2800 yuan/ton.
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