Formic Acid Prices Stabilize in Late July amid Tight Supply and Weak Demand

As of July 21, the market price of 8% formic acid in China remained stable at RMB 2,400/ton, matching early July levels and remaining at one of the lowest price points seen this year.

Supply Tightens Slightly

Tight supply conditions emerged due to reduced plant operations and continued export strength. Several producers conducted maintenance in early July, while export activity remained firm. These factors led to lower domestic inventories and contributed to the price stabilization.

Demand Remains Subdued

Downstream demand from sectors such as pharmaceuticals, rubber, leather, and pesticides stayed sluggish. Most end users continued to purchase only on a need-based basis, keeping overall market sentiment cautious.

Weak Feedstock Support

Methanol, the main raw material for formic acid production, offered little cost support. Prices at East China ports dropped slightly from RMB 2,390/ton to RMB 2,387/ton between July 14 and July 18, representing a week-on-week decline of 0.10%, a monthly drop of 12.00%, and a year-on-year decrease of 5.48%. High port inventories further weighed on methanol prices.

Market Outlook

Although tighter supply conditions have helped stabilize prices, the weak downstream demand continues to limit upward momentum. In the short term, formic acid prices are expected to fluctuate within a narrow range. Market participants are advised to closely monitor production restarts and changes in consumption demand across key sectors.