Recently, the price of formic acid has shown a continuous upward trend. As of September 20th, the benchmark price of industrial grade formic acid was 2500 yuan/ton, an increase of nearly 20% from 2100 yuan/ton at the beginning of the month. The market relies on rigid support from the cost side, combined with positive expectations for pre holiday stocking, breaking away from the previous stable stalemate pattern and achieving phased price increases, presenting an overall core trend of stable to strong.
Traditional centralized procurement window opens
The traditional centralized procurement window on the eve of the Double Festival is gradually opening, coupled with the rigid bottoming effect formed by the cost of raw materials. The bottom support of the formic acid market is very solid, effectively eliminating the risk of price decline and laying a solid foundation for subsequent price increases.
As the pre holiday stocking atmosphere continues to heat up and favorable market factors are concentrated, the formic acid market is experiencing a temporary upward trend. The average transaction price in the mainstream market successfully broke through the previous stable price and rose to 2500 yuan/ton, with a single month on month increase of 4.17%, becoming the turning point of last week’s core market trend. This price increase is not a short-term market speculation, but the result of multiple market factors resonating. The cost side remains stable, and production enterprises still face production cost pressure. They have a strong willingness to raise prices and push up prices, actively raising market quotes and leading the overall market upward. At the same time, the demand for downstream stocking before the holiday has gradually been released, with a slight increase in essential orders, breaking the previous market pattern of scattered essential needs and light trading. The supply-demand relationship has been improved in stages, directly promoting the steady rise of formic acid spot prices, and the overall trading atmosphere in the market has significantly rebounded.
The trend of formic acid market is logically clear, showing the characteristics of “stable bottom, upward shift of center of gravity, and high stability maintenance”. Although there has been no explosive growth in short-term downstream demand, with rigid procurement as the main focus, there is still room for improvement in acceptance of high prices. However, the two core benefits of cost support and pre holiday stocking expectations have dominated the market trend throughout the week, allowing the market to completely break free from the previous sideways stalemate and achieve reasonable price increases. The overall market is not affected by negative factors, and there is a strong upward trend in the industry. The market operates in a stable order.
Looking ahead to the future, with the continuous promotion of the double festival stocking window, downstream demand is expected to further recover, coupled with continued support from the cost side. The domestic formic acid market is likely to continue its stable to strong operating trend, with a high probability of maintaining stability at high prices. The possibility of significant short-term fluctuations is extremely low, and the market will continue to maintain a stable operating pattern. Specific changes in market supply and demand still need to be monitored.