In August, the domestic 85% mainstream formic acid market generally showed a fluctuating upward trend, initially stabilizing at a low level, then gradually rising in stages, and finally closing steadily at the end of the month. The price bottom rose significantly throughout the month. At the beginning of the month, the market continued the sideways trend from the end of July, with prices at their lowest point of the year, a benchmark price of 1800 yuan/ton. During the month, supported by multiple positive factors such as low inventory, plant maintenance, export boosts, and market price support, prices gradually broke through the low range and continued to rise, maintaining a stable high level at the end of the month. Overall, the market showed a fluctuating upward trend throughout the month, with a monthly increase of 16.7%.
The supply and demand dynamics dominated market changes this month, exhibiting distinct characteristics of phased game dynamics.
On the supply side, the overall trend was characterized by “increased production from resumption of operations offsetting decreased maintenance, leading to a temporary tightening of supply.” At the beginning of the month, previously under maintenance units gradually resumed production, creating expectations of increased supply and putting sustained downward pressure on prices, which was the core reason for the low price fluctuations at the beginning of the month. In the middle of the month, concentrated maintenance at some units offset the increased production from resumption of operations, tightening market supply. Coupled with companies actively supporting prices, this provided key support for price increases. At the end of the month, industry inventory rose slightly, easing supply-side pressure and stabilizing the market. Meanwhile, overall industry inventory remained at a low to medium level throughout the month, providing sustained fundamental support for formic acid spot prices and effectively limiting the downside potential.
On the demand side, the overall trend was “weak basic demand with marginal positive factors providing a boost,” which was the key constraint on market fluctuations. This month, domestic downstream end-users generally maintained weak basic demand, and the pace of demand recovery was slow, making it difficult to form a sustained strong upward momentum. This resulted in the market lacking core support for significant price increases for most of the period, with prices repeatedly entering a weak equilibrium state. However, periodic positive factors effectively drove prices upward. Low prices stimulated downstream restocking, coupled with stable export orders during the month and rising expectations for the traditional peak demand season in September, effectively boosting market sentiment, driving a recovery in market transactions, and pushing prices up in multiple rounds.
With peak demand approaching in September, prices are expected to continue rising.
With the traditional peak demand season approaching in September, demand is expected to continue to recover. Coupled with the industry’s continued support for prices, the formic acid market is likely to maintain a stable to slightly stronger trend, with a low probability of significant fluctuations. However, specific market supply and demand changes will still need to be closely monitored.
Post time: Sep-01-2026