According to the Commodity Market Analysis System of Shengyi Society, the domestic formic acid market has recently stabilized horizontally. As of January 19th, the benchmark price of 85% industrial grade formic acid in Shengyi Society was 2300 yuan/ton, which was the same as the beginning of the year, a month on month decrease of 18.73%, and a year-on-year decrease of 22%.

Supply and demand pattern: loose supply and stable demand form a dynamic balance
Supply side: The market has always maintained a loose supply pattern, with sufficient market supply and smooth circulation channels. The consensus reached by core production enterprises such as Liaocheng, Feicheng, and Jingzhou in Hubei Province to reduce production and maintain prices has not changed the current pattern of loose supply, but effectively curbed the risk of price decline and sent a clear signal to the market to raise prices. This is also one of the important supporting factors for the current mainstream prices to remain firm.
On the demand side, influenced by the long-term stable operation of prices, downstream enterprises’ procurement mentality tends to be rational, and the procurement pace gradually stabilizes, abandoning the previous wait-and-see attitude and shifting to an on-demand procurement model, effectively digesting the market’s loose supply resources.
At the inventory level, under the dual effects of loose supply and stable demand, manufacturers’ inventory levels have shown a mild downward trend, gradually approaching the industry median range, effectively alleviating inventory pressure, and forming a virtuous cycle of “loose supply but orderly destocking”.
According to the data analyst of Shengyi Society’s formic acid market, based on the current market situation, the loose supply side pattern has not changed, but there are measures to reduce production and maintain prices to support the bottom. The demand side procurement is stable and the rigid demand is stable. The inventory level has moderately fallen back to a reasonable range. Under the combined effect of multiple factors, the domestic formic acid market is likely to continue its current horizontal consolidation state in the short term, and the mainstream transaction price will continue to operate steadily around 2300 yuan/ton. Specific changes in market supply and demand still need to be monitored.