According to the Commodity Market Analysis System of Shengyi Society, the price of formic acid in China has shown a trend of first stabilizing and then rising recently. As of October 28th, the benchmark price of 85% industrial grade formic acid in China was 2830 yuan/ton.
Premium replenishment drives short-term fluctuations
Last week (10.20-10.24), the product quotation remained stable at 2800 yuan/ton, and the market price remained rigid. However, this week, there has been a partial premium phenomenon, with some end buyers restocking at a price of 2830 yuan/ton. The stability of prices in the early stage is mainly supported by the balance between sufficient supply and weak demand. The slight increase in prices in the later stage is related to the concentrated procurement and stocking of goods before downstream price increases, which is a short-term market situation brought about by the release of phased demand.
Supply and demand pattern: sufficient and stable supply, with demand leading the market rhythm
Supply side: High load production supports sufficient inventory, and the formic acid supply side maintains a stable and abundant state, with inventory levels maintained at around 60%; Demand side: Overall performance is weak, with the release of essential purchases. Due to potential price increases in the market, downstream manufacturers are concentrating on purchasing, which has driven up prices slightly.
The formic acid data analyst from Shengyi Society believes that due to market rumors that a large enterprise in Liaocheng has a maintenance plan but has not yet determined the implementation time, downstream centralized procurement will occur in the short term. With the release of procurement demand, the market will return to the normal dominated by rigid demand. It is expected that formic acid prices will continue to operate steadily, and specific changes in market supply and demand, as well as manufacturer maintenance plans, need to be monitored.
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