In the first half of 2023, the domestic industrial grade 85% formic acid market first rose and then stabilized. According to the Commodity Market Analysis System of the Business Society, as of January 1, 2023, the average price quoted by domestic industrial grade 85% formic acid enterprises was 3000.00 yuan/ton. As of June 30, the average price of formic acid was 3875.00 yuan/ton, with a market increase of 29.17% within six months.

The overall trend of formic acid in the first half of 2023 can be divided into two stages:

Rising stage (January March): The transaction price of formic acid in the market was around 3000.00 yuan/ton in January. Before the Spring Festival, the supply side started construction at a high level, and inventory was under pressure. Downstream stocking enthusiasm was not good, and some enterprises reduced prices to go to the warehouse. After the Spring Festival, mainstream enterprises experienced plant shutdowns and a decline in operating rates. In addition, the increase in raw material prices has strengthened cost support, and downstream demand is still acceptable. The mindset of the industry is improving, and the cost and supply side support for formic acid prices have increased in February. In March, the cost support was acceptable, with the market mainly digesting inventory and slightly increasing demand. In the latter half of the year, the supply side contracted and prices rose again, resulting in orderly market transactions.

Stable stage (April June): The formic acid market remained stable at a high level in April, while downstream industries such as pharmaceuticals, rubber, leather, and pesticides bought as needed in May. The overall market trading remained unchanged, and merchants shipped according to market conditions. In June, the formic acid market continued to remain stable, with mainstream prices maintained at around 3900 yuan/ton.

Upstream product: Upstream sulfuric acid. According to the Commodity Market Analysis System of Business Society, the reference price for sulfuric acid was 192.00 on June 30th, a decrease of 33.02% compared to January 1st (286.67); Upstream methanol, according to the Commodity Market Analysis System of Business Society, the reference price for methanol on June 30th was 2180.00, a decrease of 19.21% compared to January 1st (2698.33).

Entering July, the stable operation of the formic acid market is the main focus, and there is currently some support in the cost aspect. Market inquiries and transactions are just needed. According to formic acid analysts from Business Society, it is expected that the domestic industrial grade 85% formic acid market will operate steadily in the short term, and more attention should be paid to market news guidance.