According to the Commodity Market Analysis System of Shengyi Society, 85% of industrial grade formic acid in China has shown weak performance recently. As of September 22, the benchmark price of Shengyi Society formic acid was 3100 yuan/ton, which was the same as last week and in the middle of the year.

Fundamentals: Dual pressure of oversupply and weak demand
On the supply side: stable output, the operating rate of major domestic enterprises remains above 70%, and the maintenance plan of Liaocheng factory has not been executed as scheduled, which has disappointed the market’s expectations of supply contraction. As of September 18th, the inventory of major enterprises has begun to come under pressure, and some enterprises have extended their inventory cycles to more than 15 days.
Demand side: structural differentiation under weak recovery
Traditional fields: Agriculture is in a seasonal adjustment period, with weak growth in demand for feed additives; The leather and textile industries are affected by sluggish terminal consumption, with a production rate of less than 60%.
Emerging fields: Demand for environmentally friendly materials, biodiesel catalysts, etc. has increased, but the scale is relatively small, making it difficult to offset the weakness in traditional fields.
Export market: Strong export orders in August (Shandong’s major factories were ranked until September), but new orders signed in September were flat, with the main force executing previously backlogged orders, weakening market support.
The formic acid data analyst of Shengyi Society believes that the formic acid market presents the characteristics of “oversupply, weak demand, and price pressure”. In the short term, the supply-demand imbalance is difficult to fundamentally improve, and prices may continue to fluctuate weakly. Specific market changes still need to be monitored.