Global Formic Acid Market Witnesses a Steep Rise With Brisk Demand
- 26-Dec-2022 6:54 PM
- Journalist: Kim Chul Son
Hamburg, Germany- The global Formic Acid market has witnessed a steep rise in demand, gaining expectations of a sustained recovery among the market players. Suppliers managed to increase prices in a controlled manner by increasing the production rate of their manufacturing plant cuts.
In the European market, trading activities came on a track where the higher bidding and strong market fundamentals captured the Formic Acid market. Formic Acid exports from Germany increased with higher feedstock Methanol prices in the region and steady to firm trading conditions. However, retailers still have an inventory surplus after exporting sufficient cargo earlier. Economic uncertainty and a surge in consumer trading led to a revival of Formic Acid demand. Significant producers' profit margins and revenue are improving due to healthy netbacks, increasing production costs, and brisk demand. With the week ending on 23rd December 2022, the price of Formic Acid surged to USD 909/tonne FOB Hamburg with a weekly incline of 0.88%.
The bullish market of raw materials, Methanol, and coal in the USA influenced Formic Acid costs. Lower inventories with limited and deficient product accessibility in the local market influence the Formic Acid market dynamics. A strong downstream preservative derivative market keeps the product cost to be bullish. Bidding of Formic Acid expanded further as the suppliers were more intrigued by bulk purchasing and anticipating purchasing the new stocks for the forthcoming weeks. With the week ending on 23rd December 2022, the price of Formic Acid in the US surged to USD 1021/tonne FOB Texas.
According to ChemAnalyst, the price of Formic Acid in the global market will increase further as bullish demand for the new stock and increasing feedstock Methanol price will hamper the prices. Formic Acid contract prices will also increase, coupled with bullish demand, global economic uncertainty, and expectation for further increases in the downstream preservative market. Strong market fundamentals and improving demand will also affect the downstream sector.