SunSirs: The Formic Acid Market Is Strong and the Market Atmosphere Is Active

　　Price trend

　　According to data from SunSirs’bulk list, as of August 20, the average price of formic acid companies’quotations is 3,400 RMB/ton, an increase of 0.99% compared to Monday’s price, and an increase of 12.09% compared to July 20. In a three-month cycle, it rises by 24.39%.

　　Analysis review

　　The domestic formic acid market has been improving since August, and the overall market has shown an upward trend this week. Recently, formic acid market inventory is low and the supply side is tight. Domestic downstream terminal factories are purchasing on demand. On-site transactions are smooth. Coupled with export support, the center of market transactions is steadily rising.

　　In terms of cost: upstream caustic soda, as of August 19, the reference price of caustic soda was 647.50 RMB/ton, which was the same as the price on August 1; Upstream liquid ammonia, on the 19th, the Shandong liquid ammonia market remained stable, some manufacturers’ prices were slightly lowered, traders’ quotations were generally stable, and some were shipped at a cut-price; The upstream sulfuric acid market was temporarily stable on August 19 in Shandong. The upstream sulfur market has risen slightly recently. Some sulfuric acid manufacturers are under-operating and the load is reduced. The downstream formic acid market is gradually rising, and the downstream procurement enthusiasm is good; Upstream methanol, on August 19, the methanol reference price was 2,577.50 RMB/ton, an increase of 0.78% compared with August 16 (2,560.00 RMB/ton).

　　Market outlook

　　Formic acid analysts of SunSirs believe that, on the whole, the current raw materials support the formic acid market, the supply side is tight, the demand side is actively following up, and the holders have no intention of lowering the price and wait-and-see prices are the main operation. It is expected that the formic acid market will be strong in the short term.