According to the Commodity Market Analysis System of Shengyi Society, the formic acid market has recently shown a weak consolidation pattern in a state of weak supply-demand balance. As of October 9th, the benchmark price of formic acid in Shengyi Society was 2933 yuan/ton, down 3.3% from before the holiday, down 8.9% month on month, and up 5.71% year-on-year.
Inventory release
On September 25th, manufacturers released reserved inventory and initiated a price adjustment mechanism, effectively reducing enterprise inventory from high levels to a median level of 55% -60%. Top enterprises such as Luxi Chemical maintain a low inventory strategy, while small and medium-sized enterprises face significant inventory pressure due to a high proportion of raw material purchases.
Weak performance on the demand side
The pre holiday market is in a stage of price adjustment, and some downstream enterprises have adopted moderate procurement strategies due to pre holiday stocking demand and price expectations. However, overall, the demand in the terminal market is still insufficient.
There is support for the price of raw material methanol
After the National Day holiday, the methanol market will enter a critical stage of upstream enterprises destocking and downstream enterprises restocking simultaneously. Due to the high operation of coal prices and the rise in natural gas costs, the downward space for methanol prices is limited, which will provide certain support for the cost of formic acid.
The formic acid data analyst from Shengyi Society believes that the current formic acid price has no significant upward momentum in terms of cost support and weak supply-demand balance, and is expected to maintain a weak and volatile trend.
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