The Chinese formic acid market during second half of September 2025 faced significant bearish pressure. There were announcements of oversupply at the All-China Leather Exhibition (ACLE) and the Intertextile Shanghai, and weak export demand for leather and rubber goods contributed to softer demand. The supply was amassed for eastern terminals which encouraged discounts on FOB parcels, while the steady offtake locally continued to stabilize the market in Guangdong, Zhejiang, Yunnan, Hainan, Shandong, and Henan. In short, China exhibited reasonable resilience even in the global markets' depressed state, which could be attributed to its strong domestic fundamentals.
During second half September 2025, the Chinese formic acid market remained low as leather tanning, rubber latex, and textile dyeing continued to experience postponed spot purchasing and poor seasonal uptake, especially feed preservatives due to falling export orders to Europe and Southeast Asia. Meanwhile, steady consumption in the domestic market supported demand in the region, including tanneries in Guangdong and Zhejiang, high-utilization rubber latex platforms in Yunnan and Hainan, and continued purchasing of feed-grade formic acid on Shandong and Henan livestock farms. Supply remained relatively high, as domestic producers met 97% of the market needs, resulting in surplus cargoes at eastern terminals, along with port congestion at Qingdao, along with rising freight costs.
In the third week of September 2025, the formic acid FOB Qingdao price fell sharply by 5.68%, demonstrating weakness in the market, as the market reversed a 12-week bullish trend, primarily driven by oversupply and weak demand from export opportunities. In the fourth week, there were no changes to the price point, as supply demand remained relatively balanced, and input costs continued to remain stable. During the last week of September, the price dropped by 2.41%, as bearish sentiment continued influenced by declines in industrial demand and surplus inventory availability.
The All-China Leather Exhibition (ACLE) and Intertextile Shanghai in mid-September showcased the oversupply of formic acid, adverse export demand for leather and rubber products culminating in bearish sentiment and steady methanol costs creating some cost resistance. Weak formic acid overseas industrial demand particularly in Europe and lower downstream domestic production demand in leather and rubber industries resulted in a backlog of excess inventories in eastern terminals including some discounted FOB parcels. Nonetheless, steady domestic use in tanning, rubber latex and feed for livestock business stemming from China's agricultural modernization initiatives and a 2025 goal for us helped mitigate the downward movement. Stock accumulation due to ongoing traffic congestion at the Qingdao port caused downward pressure for domestic formic acid.
ChemAnalyst, anticipates Chinese formic acid market may remain range-bound into October 2025 while domestic consumption of formic acid for leather, rubber, and the farming feed usage will blunt the expanding pressures from global oversupply and weakening export demand.
