According to the commodity market analysis system of Business Society, the domestic formic acid market has shown a stable yet slightly rising trend recently. As of February 9, the benchmark price for 85% formic acid in China was 2,440 RMB/ton, representing an increase of 3.83% compared to the same period last week (February 2) at 2,350 RMB/ton. On a month-on-month basis, the price rose by 6.09%, while on a year-on-year basis, it decreased by 17.29%.

Supply Side: Maintenance and Capacity Utilization Dominate, with Inventory Providing Support
The supply side has been one of the core driving factors behind the fluctuations in the formic acid market during this period. On one hand, plant maintenance has led to a temporary contraction in supply. For instance, a 100,000-ton capacity plant in Liaocheng underwent maintenance in the early part of the first half of the month, directly affecting regional supply. On the other hand, most manufacturers are not operating at full capacity, and some have implemented phased production cuts, resulting in a sustained tightness in overall market supply, which has provided fundamental support for price increases. Additionally, inventory levels have played a particularly critical role. At the end of January, manufacturers offered discounts to secure a large number of orders, leading to mid-to-low inventory levels in the market during the first half of the month. This further highlighted the tight supply situation, becoming a significant driver of price increases. Meanwhile, the reasonable buffer of industry inventory in the earlier period helped prevent significant price fluctuations caused by supply gaps due to maintenance.

Demand Side: Weak Domestic Demand, Export Shipments Provide Supplementary Support
The demand side has exhibited a divergent pattern characterized by "weak domestic demand and export support." In the domestic market, the approaching Spring Festival holiday has been a key influencing factor. Downstream industries such as rubber, pharmaceuticals, leather, and pesticides have gradually entered the final stages of stockpiling, adopting a more cautious purchasing approach. Demand has primarily been driven by rigid needs, with limited willingness for additional stockpiling, resulting in a limited pull effect on formic acid prices. In the export market, the arrival of the pre-holiday shipment period has emerged as a significant highlight on the demand side. Export shipments have increased compared to the previous period, effectively absorbing some domestic supply and providing a certain level of support for prices.

Analyst Perspective:
Based on the current market structure and trends in both supply and demand, Business Society’s formic acid data analyst believes that the domestic formic acid market is likely to maintain stable pricing operations before the Spring Festival, with relatively limited price fluctuations. However, close attention should still be paid to changes in supply and demand dynamics.