Recently, the domestic formic acid market has shown a stable and sideways trend after rising. As of July 13th, the benchmark price of formic acid in Shengyi Society was 2300 yuan/ton, up 9.52% from 2100 yuan/ton at the beginning of the month.
After continuous increases, prices stabilize
The formic acid market experienced several days of continuous price increases and upward trends in early July, and the trading atmosphere in the market gradually rebounded, laying the foundation for maintaining stable prices in the future. After entering July 6th, the upward momentum of the market gradually dissipated, and the overall market returned to a rational and stable range. From the perspective of core supporting factors, the market shipment situation continued to improve in the early stage, effectively driving the overall inventory of the industry back to a reasonable range in the middle. The industry inventory pressure is controllable, providing solid fundamental support for the stable operation of formic acid prices at the current stage, effectively avoiding the risk of price decline, and building a solid market bottom.
From the perspective of market constraints, the formic acid industry is currently in the traditional off-season of consumption, with overall downstream terminal demand being relatively flat. The pace of essential procurement has slowed down, and the market lacks sustained demand growth benefits, making it difficult to push prices up again, which has become the core constraint for maintaining a sideways market trend. Overall, at present, the long short game in the formic acid market tends to be balanced, with a benign decline in inventory forming favorable support, weak demand during the off-season forming upward pressure, and a stable market pattern formed by the hedging of two-way factors.
Market forecast: In the absence of clear favorable factors such as new industry policies, raw material fluctuations, and increased demand, the domestic formic acid market is unlikely to break the current equilibrium pattern in the short term. It is expected that the stable and sideways trend will continue in the future, and mainstream prices are likely to remain stable. There is currently no expectation of significant fluctuations in the market.
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