China Formic Acid Market Weakens Amid Broad-Based Demand Slump and Cost Pressure

Recent Price Movements

According to the Commodity Market Analysis System of SunSirs, the reference market price of formic acid across China was 1,920 RMB/ton as of April 25th. Compared to the reference price of 2,050 RMB/ton on April 1st, this represents a decrease of 130 RMB/ton, or approximately 6.34%.

Throughout April, the formic acid market in China has exhibited a steady downward trend. Prices have continued to weaken month-to-date, with the negotiation focus shifting lower. As of late April, the national average price for formic acid ranged between 1,900–1,950 RMB/ton, reflecting a cumulative monthly decline of about 100–150 RMB/ton.

Key Drivers Behind the Decline

• Market Supply and Demand:
  In April, China's formic acid market faced a generally sluggish trading environment. Supply remained sufficient, but downstream demand from industries such as leather, pharmaceuticals, textiles, and rubber additives was weak. End users showed cautious buying behavior, leading to reduced transaction volumes and increased supply-side pressure nationwide.

• Raw Material Cost Trends:
  Upstream cost support has been weak. Prices of the main raw material, liquid ammonia, declined steadily across China during the month. As of April 24th, the average reference price of liquid ammonia was around 2,920 RMB/ton, down from 3,080 RMB/ton at the start of April, representing a decrease of approximately 5.19%.

Looking Ahead

As of April 25th, China's formic acid market continues to operate under pressure from both weak downstream demand and declining raw material costs. According to SunSirs' market analysis, in the short term, formic acid prices are expected to fluctuate within a narrow range, with a slight downward bias. Future market dynamics will closely depend on changes in upstream cost factors and the recovery pace of downstream industries.