Recently, 85% of the domestic formic acid market has shown a trend of continuous decline before the holiday and stabilization after the holiday. On October 8th after the holiday, the benchmark price of 85% formic acid was 2000 yuan/ton, a decrease of 13% from the same period last month when it was 2300 yuan/ton; Same as before the holiday. Overall, the supply and demand pattern of the formic acid market has improved in the short term, and market fluctuations have become more stable.
At the end of September, the market experienced a slight decline in prices due to factors such as inventory backlog and pre holiday clearance
The core cause of price decline is the continuous accumulation of inventory in the market, the slowdown of market shipment pace in the early stage, and the gradual increase in inventory pressure on merchants. In order to quickly recover funds and activate inventory, some merchants have actively released low-priced goods, resulting in an increase in low-priced transaction cases in the market, which directly drives the overall market transaction average price to slightly decrease, and the overall bargaining atmosphere in the industry is weak. Due to the special market factors approaching the National Day holiday, most production enterprises have focused on clearing inventory and shipping to avoid the risk of inventory backlog during the holiday, resulting in a continuous increase in low-priced supply in the market. Downstream terminals mainly rely on on-demand replenishment, with weak pre holiday stocking willingness and insufficient market demand support. Under the mismatch of supply and demand, the transaction center of formic acid market continues to shift downwards, and the overall pre holiday market is under pressure.
The market returns to stability after the holiday
After two rounds of adjustment before the holiday, the fundamentals of the formic acid market gradually improved during the National Day holiday, and the market stabilized smoothly. On October 8th, 85% of the domestic industrial grade formic acid market was dominated by horizontal consolidation. During the holiday, mainstream manufacturers stopped selling at low prices, and market prices stabilized at around 2000 yuan/ton. The price trend remained stable throughout the entire process, with no significant fluctuations. At the same time, the shipment situation during the holiday period was smooth, effectively alleviating the inventory pressure in the early stage. The overall inventory of the industry fell back to a reasonable median level, and the problem of market supply-demand imbalance was improved.
Based on the analysis of recent market trends, the price fluctuations in the formic acid market are mainly dominated by inventory cycles and holiday trading rhythms. The accumulation of pre holiday inventory and centralized inventory clearance have led to a price drop, while post holiday inventory digestion and manufacturer price increases have driven the market to stabilize and rebound. At present, the inventory pressure in the market is controllable, and the pricing mentality of merchants is stable. In the short term, if there are no new positive or negative supply and demand news, the domestic formic acid market is likely to continue its range sideways trend, and the price will remain stable around 2000 yuan/ton. In the future, we need to focus on the progress of downstream demand recovery and changes in manufacturer inventory.