According to the Commodity Market Analysis System of Shengyi Society, the price of formic acid in China has been stable recently. As of April 17th, the benchmark price of 85% industrial grade formic acid in Shengyi Society was 3000 yuan/ton, an increase of 15.38% month on month and a decrease of 11.76% year-on-year.
| Gamma-PGA (gamma polyglutamic acid) |
Supply and demand market, relatively balanced
On the supply side, the current market supply is sufficient, and most formic acid manufacturers have resumed production. Although they have not yet fully entered full load operation, the overall supply capacity can meet market demand. Coupled with the low overall inventory in the industry, it provides certain support for price stability. The performance on the demand side is average, and the purchasing willingness of domestic downstream enterprises is weak, mainly focusing on acquiring and replenishing goods for essential needs. There has been no large-scale centralized procurement behavior, and the driving effect on the market situation is limited. However, there is still residual heat in the export market, and export orders can provide temporary support for the market. Under the combined effect of multiple factors, the overall market is showing a stable operating trend.
Overall, the four factors of abundant supply in the formic acid market, weak domestic demand, export support, and low inventory are interacting to maintain price stability. Based on the spot market analysis of Shengyi Society, the 10 day moving average and the 20 day moving average have overlapped, indicating that the market has reached a turning point and the price position is high, with limited upward space. Therefore, the price of formic acid may operate weakly and steadily.
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