Price trend
According to the data of SunSirs’bulk list, as of September 17th, the average price of formic acid from companies' quotations was 6,033.33 RMB/ton, which was the same as Monday's price and increased by 77.45% compared with August 17th, and an increase of 118.07% in a three-month cycle.
Analysis review
This week, the domestic industrial-grade 85% formic acid market was mainly operating at high prices. The raw material continued to be strong, with strong cost support for formic acid. Manufacturers delivered orderly, export support was stable, domestic downstream continued to purchase on rigid demand, and the market was running at a high level steadily.
In terms of index: the formic acid commodity index on September 17 was 332.11, which was the same as previous day, setting a new historical high in the cycle, and an increase of 174.24% from the lowest point of 121.10 on December 07, 2020. (Note: Period refers to 2020-09-01 to present)
In terms of cost: upstream caustic soda, on September 17, the reference price of caustic soda was 895.00 RMB/ton, an increase of 37.69% compared with the price on September 1 (650.00 RMB/ton); Upstream liquid ammonia, on September 17, Shandong liquid ammonia market continued to be stable. After a continuous rebound last week, the price of liquid ammonia reached a relatively high level. The prices of most manufacturers did not change this week; Upstream sulfuric acid, on September 17th, the sulfuric acid market in Shandong was temporarily stable. The upstream sulfur market increased slightly. Some sulfuric acid manufacturers were under-operating and the load was reduced. The downstream formic acid market was gradually rising, and the downstream procurement enthusiasm was good; Upstream methanol, on September 17, the reference price of methanol was 3,092.50 RMB/ton, an increase of 18.26% compared with the price on September 1 (2,615.00 RMB/ton).
Market outlook
The formic acid analysts of SunSirs believe that the raw materials are running strongly, the cost support is good, the "double festival" is approaching, the downstream is orderly stocking, the sales of enterprises are not pressured, and the market atmosphere is acceptable. It is expected that the formic acid market may be strong at a high level in the short term, and more attention needs to be paid to market news guidance.
