Formic acid prices in the U.S. trended higher into mid-March, supported by feedstock volatility and logistical pressures that lifted offers. The tone was set by methanol swings, freight and insurance costs linked to geopolitical risk, and a softer dollar, which together underpinned the mid-month uptick after early softness. Demand remained bifurcated: agriculture-related applications such as silage additives and animal feed acidifiers held steady and supported volumes ahead of spring, while distributor procurement provided lift. In contrast, leather and textile processing, plus rubber and latex coagulation uses, showed only limited recovery, weighing on domestic consumption as offshoring and weak export flows trimmed spot demand. Export activity was subdued as arbitrage to nearby markets softened, pressuring sellers. Domestic output continued to cover only a minority of demand, underscoring exposure to imports and feedstock swings. Outlook points to further upside potential amid methanol volatility, elevated carbon monoxide feedstock pressures, and agricultural input-cost inflation, with geopolitical tensions adding upward pressure on offers.
