According to the Commodity Market Analysis System of Shengyi Society, the price of formic acid has shown a weak and stable trend recently. As of April 20th, the benchmark price of 85% industrial grade formic acid in China was 2800 yuan/ton, unchanged from the previous month and decreased by 17.65% year-on-year.
The fundamental supply is sufficient, and the manufacturer has lowered the quotation
The supply of formic acid has always been sufficient, with stable supply sources. Although there has been no shortage of supply, the overall upward momentum is lacking, and the support for prices is weak. This is also one of the core factors that make it difficult for prices to recover. At the same time, although the overall inventory of the industry has been supported by a low level, with the recent flat demand, the market inventory has shown a cumulative trend, further exacerbating the downward pressure on prices.
The demand side performance is flat, and the purchasing willingness of domestic downstream enterprises is weak, mainly focusing on obtaining goods for essential needs. There has been no large-scale centralized procurement behavior, making it difficult to effectively drive prices; In terms of exports, most of the orders are delivered in the early stage, and there are few new orders added, which cannot provide strong support for the market situation. The wait-and-see sentiment in the downstream market continued to heat up after the early price reduction, causing manufacturers to slow down their shipping pace and increasing inventory pressure on enterprises, further driving down prices.
Some manufacturers have made early preparations to cope with the upcoming May Day holiday, while taking advantage of the current profitable window to grab more orders and actively lowering their quotations, which has become an important driving factor for the slight decline in initial prices.
It is expected that the price of formic acid will continue to remain weakly stable.
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