According to the commodity market analysis system of Business Society, following a slight rebound in formic acid prices in mid-January, the domestic formic acid market has recently entered a stable phase of consolidation. The mainstream transaction price has consistently remained steady at 2,350 yuan/ton, with no significant fluctuations in either direction. The core characteristic of this market phase is the dynamic interplay between supply and demand. The implementation of maintenance expectations on the supply side and the support from rigid pre-holiday demand on the demand side have interacted to maintain price stability, resulting in an overall industry trend of "reduced volume and stable prices."

The supply side has been the key variable influencing the market during this period. From January 27 to January 29, market attention was focused on the maintenance plan of a major production facility in Liaocheng. At that time, the facility had not yet begun maintenance, but the expectation alone provided effective support to the market. During this period, the overall shipment rate remained at a moderate level, and industry inventories were also in the mid-range. Reasonable inventory levels and shipment pace laid the foundation for price stability.

On January 30, the maintenance expectation materialized as a factory in Liaocheng initiated maintenance on its 100,000-ton formic acid facility, leading to an actual reduction in market supply. The tightening of supply became a confirmed reality. By February 2, the impact of the maintenance continued to unfold, further contracting the overall market supply. However, due to the moderate inventory levels in the industry and the ongoing production reduction and price stabilization policies, the supply gap caused by the maintenance was partially offset by reasonable inventory levels. This prevented market supply shortages and did not trigger upward price fluctuations.

On the demand side, "rigid demand dominates, with limited incremental growth." As the Spring Festival holiday approaches, downstream enterprises have generally adopted a cautious procurement approach, shifting from earlier wait-and-see attitudes to a demand-based purchasing model. Most purchases are driven by immediate production needs, with no large-scale pre-holiday stockpiling activities observed. Market procurement intensity remains relatively stable.

From the perspective of downstream industries, traditional demand sectors for formic acid, such as feed, leather, and printing and dyeing, are in a seasonal off-season, with operating rates below 60% and limited consumption capacity. Meanwhile, sectors like pharmaceuticals and chemicals maintain only small-scale rigid demand purchases, unable to provide substantial market momentum.

Formic acid data analysts at Business Society believe that as the Spring Festival holiday approaches, market trading activity may further decline, and downstream enterprises are likely to continue prioritizing rigid demand in their procurement. On the supply side, the maintenance of the major facility in Liaocheng is ongoing, and market supply will remain contracted. The supply-demand balance is unlikely to be disrupted in the short term. It is expected that the domestic formic acid market will continue its consolidation trend in the near term, with mainstream prices remaining around 2,350 yuan/ton.