According to the Commodity Market Analysis System of Shengyi Society, formic acid experienced an upward trend at the end of February. As of February 24th, the average price of 85% industrial grade formic acid in China was 3000 yuan/ton, an increase of 1.69% from 2950 yuan/ton at the beginning of the month and a decrease of 4% from 3125 yuan/ton in the same period last year.

The supply side device is running stably, and the outlet is improving

The mainstream production enterprises of formic acid have stable operation of their equipment and little inventory pressure. Due to the long-term stable operation of the market, manufacturers hold a high price mentality. However, the export situation of formic acid is good, and the amount of goods on site has decreased. Manufacturers’ high price mentality is becoming stronger, and the focus of the formic acid market has shifted upward.

Weak consolidation of raw material methanol reduces support for formic acid

According to the Commodity Market Analysis System of Shengyi Society, from February 14th to 21st (as of 15:00), the average price of methanol in East China ports in the domestic market first fell from 2599 yuan/ton and then rose to 2598 yuan/ton, with a price decline of 0.03% during the period, a month on month decline of 2.35%, and a year-on-year decline of 0.67%. The domestic methanol market is weak and volatile. The utilization rate of domestic methanol production capacity is still at a high level, and the traditional downstream is gradually recovering. Although downstream external procurement has boosted the mainland market at the beginning of the week, the downstream maintains rational procurement as the main focus, and the overall mainland market is weak and volatile.

The demand for downstream compound fertilizers has increased

The compound fertilizer market is steadily rising. At present, the market is active in trading, with strong cost support and the release of spring demand. Some manufacturers have suspended orders and are reluctant to sell, and it is expected that the short-term market will continue to consolidate and operate at a high level.

The formic acid data analyst from Shengyi Society believes that with the combination of good demand and favorable export conditions, formic acid prices have risen, and the spring farming season is approaching. It is expected that downstream pesticides will boost the demand for formic acid, and the formic acid market is expected to remain stable and strong. Specific market supply and demand news still needs to be monitored.