The domestic formic acid market showed a sideways trend after the holiday. On October 9th, the benchmark price of formic acid was 2100 yuan/ton, up 100 yuan/ton from the previous day, and then the price stabilized.
The upward trend is driven by the supply side: manufacturers have the willingness to raise prices, but lack the ability to continuously pull up prices
The thrust comes from the supply side. During the holiday period, mainstream manufacturers stopped selling goods at low prices, and on October 8th, prices stabilized at around 2000 yuan/ton; After the holiday, production enterprises actively raised their prices to stimulate downstream procurement, driving up the average transaction price on October 9th. The inventory structure also corresponds to this action: the median inventory of production enterprises is higher, and the social inventory in the circulation process is relatively low.
Horizontal trading is the baseline scenario, and breakthrough requires the emergence of new variables on the demand or supply side
The demand side is the most direct constraint on current prices. Terminal orders are scattered, and downstream acceptance of 2100 yuan/ton is generally limited; The manufacturer has publicly raised prices, but lacks the motivation to proactively negotiate, making sideways trading the most likely scenario.
Overall, this round of price increase is a one-time price displacement caused by supply side push ups, with a short-term trend of sideways consolidation. The price of 2100 yuan/ton is close to the acceptable upper limit downstream. The future trend may be dominated by consolidation.
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