According to the company’s commodity market analysis system, at the end of 2025, the price of formic acid declined, and as of January 5, 2016, 85% of the company’s domestic industrial grade formic acid benchmark price was 2300 yuan / ton, down 8.6% from 2500 yuan / ton on December 24, 2015.
Recent domestic formal acid market price movements can be clearly divided into two core stages, the overall presentation of the characteristics of “rapid downward stability”:
The first phase is the price downward phase (December 24-December 25). On December 24, the domestic formic acid market was stable and the mainstream trading price was maintained at 2500 yuan / ton, but at this time the market has hidden downward risks. With the completion of the maintenance of the main unit in Chatecheng, the new production capacity in Hubei Jingzhou was realized, and the supply and demand contradictions intensified. The next day (December 25) The market price dropped significantly, the mainstream trading price fell to 2300 yuan / ton, a single-day drop of 200 yuan / ton, a drop of nearly 8%, the downward trend of the market is clear.
The second phase is the lateral finishing phase (December 26-January 5). Since December 26, the domestic formal acid market entered the lateral finishing situation, and the mainstream trading price continued to stabilize at 2300 yuan / ton. During this period, despite the increasing pressure on the supply side, the price did not change significantly, and the market entered a short-term supply and demand stagnation.
Core Impact Factor Analysis
(1) Supply side: production capacity release overlapping inventory is high, market relaxation pattern has been determined
Recently, the supply side of the formic acid market has continued to expand, becoming the core factor of price suppression. On the one hand, the new production capacity has been released, the main production unit has been repaired and restored to full load operation, and the new production capacity in Hubei Jingzhou has been gradually raised to full load after the smooth deployment. The Hubei factory alone has increased the domestic daily supply by 600 tons, and the overall supply of goods has increased significantly. On the other hand, the inventory pressure is high, the initial backlog inventory maintains a medium to high level and is not fully digested, and the new production capacity further intensifies the accumulation of inventory, and the enterprises go to Inventory pressure continues to climb. In this context, manufacturers have actively lowered the quotation to relieve inventory pressure. Although the quotation is temporary, the loosening behavior such as low-price targeted supply has reflected the passive situation on the supply side.
(2) Demand side: strong expectations, low purchasing willingness constrains price recovery
The weak performance on the demand side further exacerbated the supply and demand contradiction in the market. Since December 24, downstream buyers have generally held an optimistic attitude, and the trading atmosphere continues to be cold. After the price decline on December 25, the optimistic mood in the terminal market has not eased, but has grown stronger. Most buyers tend to wait for prices to stabilize and buy again, resulting in a weak market procurement willingness. Proactive procurement behavior, it is difficult to form effective demand momentum to support the price recovery.
The analyst believes that in combination with the current market supply and demand pattern and price system changes, the domestic market for formic acid is still dominated by “stable and weakening” in the short term, and there is a possibility of further weakening of prices. Specifically, it is still necessary to pay attention to market supply and demand changes.
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