The domestic market for 85% formic acid has recently exhibited a trend of “continuous decline prior to the holiday, followed by stabilization after the holiday.” As of October 8—the first day back after the break—the benchmark price for 85% formic acid was 13% lower than during the same period last month, though it remained unchanged from pre-holiday levels. Overall, the supply-demand dynamics in the short-term formic acid market have improved, and price fluctuations have moderated.
At the end of September, market prices edged down due to factors such as inventory backlogs and pre-holiday stock clearance.
The primary driver behind the price pullback is the continuous accumulation of in-market inventory; a slowdown in the pace of sales previously led to mounting inventory pressure on traders. To rapidly recover capital and mobilize stock, some merchants have proactively released low-priced supplies. An increase in low-priced transactions has directly pushed down the overall average market price, while the general bargaining climate remains weak. Compounded by the approaching National Day holiday, many producers have ramped up inventory-clearing efforts to avoid the risk of stock accumulation during the long break, resulting in a sustained influx of low-priced material into the market. Downstream buyers are largely limiting purchases to immediate needs, showing little inclination to stock up ahead of the holiday; with insufficient demand support and a supply-demand mismatch, the formic acid market’s price center has continued to drift downward, leaving the pre-holiday market under overall pressure.
Market conditions have stabilized following the holiday.
Following two rounds of market pullbacks prior to the holiday, the fundamentals of the formic acid market gradually improved during the National Day break, and prices stabilized smoothly. On October 8, the domestic market for 85% industrial-grade formic acid remained largely flat; major manufacturers refrained from low-price dumping during the holiday, resulting in steady price trends without significant fluctuations. Meanwhile, the smooth flow of shipments during the break effectively alleviated earlier inventory pressures, bringing overall industry stock levels back to a reasonable, moderate range and improving the supply-demand balance.
An analysis of recent market trends indicates that price fluctuations in the formic acid market are primarily driven by inventory cycles and trading patterns surrounding holidays. Price declines were triggered by pre-holiday inventory accumulation and concentrated stock clearing, whereas the post-holiday period saw prices stabilize and rebound as inventories were depleted and manufacturers maintained firm pricing. Currently, inventory pressure remains manageable, and traders are adopting a steady approach to pricing. In the short term—barring any new bullish or bearish developments regarding supply and demand—the domestic formic acid market is likely to continue trading within a stable, sideways range; going forward, key factors to monitor include the pace of downstream demand recovery and changes in manufacturer inventory levels.
Post time: Oct-09-2026