In August, 85% of the mainstream formic acid market in China showed an overall volatile upward trend of maintaining stability at a low level, rising step by step, and closing steadily at the end of the month. The price bottom rose significantly throughout the month,. At the beginning of the month, the market continued its sideways trend as of the end of July, with prices at a low level for the year, with a benchmark price of 1800 yuan/ton. Relying on multiple factors such as low inventory levels, equipment maintenance, export boosting, and market price support, the market gradually broke through the low range and continued to shift its focus upwards. At the end of the month, the market maintained a stable high level, with a benchmark price of 2100 yuan/ton. The overall trend for the month showed a fluctuating and strengthening pattern, with a 16.7% increase during the month.

The supply-demand pattern dominates the changes in the market situation this month, forming obvious phased game characteristics
The overall supply side shows the characteristics of “offsetting the increase in production and the decrease in maintenance volume, and tightening the supply of goods in stages”. At the beginning of the month, maintenance equipment was planned to resume production one after another, and there was an expectation of increased supply in the market, which continued to suppress prices and was also the core reason for the low price fluctuations at the beginning of the month; In the middle of the month, some devices underwent centralized maintenance to offset the increase in production resumption, and the market supply tightened. Coupled with the active price hikes by enterprises, this provided core support for price increases; At the end of the month, industry inventory slightly increased, supply side pressure slightly eased, and the market tended to stabilize. At the same time, the overall inventory of the industry remained at a medium low level for a long time throughout the month, providing sustained basic support for the spot price of formic acid and effectively limiting the downward space of prices.
The overall trend of weak demand on the demand side and marginal positive boost is a key constraint factor for market fluctuations. This month, the overall production and demand of downstream terminals in China have been weak, and the pace of demand recovery is slow, making it difficult to form a sustained strong upward momentum. This has led to a lack of core support for significant price increases in most periods of the market, and the market has repeatedly entered a weak equilibrium state of sideways movement. However, the phased positive news effectively drove the market upward, and the low prices stimulated downstream to replenish inventory and purchase goods. Coupled with the stable performance of export orders within the month and the expected increase in the traditional demand peak season in September, it effectively boosted market sentiment, drove market transactions to recover, and pushed prices up multiple times.
The peak demand season in September is approaching, and prices are expected to continue rising
As the traditional peak demand season approaches in September, the demand side is expected to continue to recover, coupled with the continued upward trend in the industry, the formic acid market is likely to maintain a stable and strong operating trend, with a low probability of significant fluctuations. Specific attention still needs to be paid to changes in market supply and demand.