Analysis and Future Trends of the Imbalance between Supply and Demand in the Formic Acid Market and the Rising Prices

2025-08-26

Recently, the domestic formic acid market has shown a prosperous scene. Although the demand side remains stable, prices continue to rise against the backdrop of tight supply.

► supply situation

The overall supply of formic acid in the market is stable, but inventory is at a low level. Shandong Asde has temporarily stopped production due to maintenance and restoration, and is currently experiencing strong production and sales Although the large factory in Luxi has been less affected by the epidemic, its operating rate is good, downstream demand is strong, shipments are smooth, and inventory is low On the other hand, BASF's production and sales have been subject to certain restrictions due to the pandemic

► demand condition

Formic acid is widely used in various fields such as chemical industry, pharmaceuticals, leather, rubber, pesticides, etc. Although overall demand has remained stable in recent times, the main demand for formate salt in the market is stable, with rigid replenishment being the main focus. The demand support for pharmaceuticals and pesticides is strong, and the demand for highly acidic markets is gradually showing positive results. The demand in the leather industry is affected by the off-season, and the operating rate is basically stable, with rigid procurement as the main focus. Overall, the cost side has a certain supporting effect on the market, and factories tend to adopt a price stabilization and wait-and-see strategy. Downstream users maintain a cautious attitude, mainly focusing on urgent inquiries.

Import and export market dynamics

In June 2021, the total import volume of formic acid in China was 1.4 tons, a decrease of 25.53% compared to the same period last year. The main sources of imports include Finland, Israel, Germany, and the Czech Republic. The export situation of formic acid is quite different, with a total export volume of 28965.97 tons in the month, an increase of 95.05% year-on-year. The main export destinations are India, Türkiye, Vietnam and the Netherlands.

Future Prospects

The formic acid market is expected to continue to strengthen in the short term, with a potential increase of around 200 yuan/ton within the month This is mainly attributed to the following factors:

In terms of cost, major manufacturers maintain high quotations and stable shipments from enterprises Luxi, Asd and other facilities are operating normally, but inventory is tight and supply is scarce. Meanwhile, BASF will continue to be affected by the epidemic, which provides strong support for the cost aspect.

In terms of demand, the overall demand in the downstream market is strong, and the shortage of supply has further stimulated the enthusiasm for inquiry and procurement. The demand for export orders is also constantly increasing. In addition, the peak season of "Golden September and Silver October" is approaching, and it is expected that overall demand will continue to improve. Market dynamics show that as prices rise, the impact of uncontrollable factors such as the pandemic on transportation has intensified the tense atmosphere in the market. Downstream hoarding is common, and manufacturers tend to be reluctant to sell.

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Analysis and Future Trends of the Imbalance between Supply and Demand in the Formic Acid Market and the Rising Prices