Availability of formic acid in the USA continued to be floodingly high and price dropped by 5.3% at the beginning of December 2025. BASF’s Geismar plant, remained at full rates after brief maintenance in the prior month, with consistent syngas-based carbon monoxide and competitively-priced natural-gas utilities. Feedstock methanol prices fell by ~3%, alleviating the variable costs but not compensating for the weaker downstream realizations, leading to a slight increase in terminal inventories along the Gulf Coast. Mississippi River levels returned to normal allowing for better barge clearances into Midwestern markets and congestion at the Houston port eased after backlogs in November.
Supply of formic acid in the US was very strong at the beginning of December 2025. BASF's Geismar site – the sole world-scale domestic unit continued to run at full operating rates after small maintenance the month prior, with steady syngas-based carbon monoxide and competitively priced natural gas utilities. Feedstock methanol prices were down ~3%, being another factor on price fall of formic acid. The inventories at the terminals on the Gulf Coast inching up. Nearly two-thirds of U.S. consumption was met by imports as European producers diverted cargoes to the U.S. on the back of weak regional demand. The trans-Atlantic freight from Rotterdam to Houston and Houston to Rotterdam declined ~9% month-on-month, accumulating formic acid. Flooding of the Mississippi River returned to normal, boosting barge traffic toward Midwestern markets, and backlogs at Houston port eased after November logjams.
Formic acid demand remained weak on 1st week of December. Seasonal de-icer volume was negatively affected by tepid weather in the major city hubs, slowed buying and stocking of formic acid. Animal Feed Formulator’s continued to follow the usual offtake for applications in the poultry acidifier sector and were unable to show any growth in demand after they recently expanded their production capacity. Formic acid demand from oilfield stimulation remained flat, concurrent with the leveling-off of U.S. rig count, while consumption of leather treatment weakened as more tanning activity migrated to Mexico and Asia. Specialty chemical blenders said they were well stocked and saw little or no forward buying in an environment of persistent price declines. Formic Acid buyers from Canada and Mexico renewed order, but US FOB prices remained out of line. Recurring EPA compliance costs have had some influence on budgeting but have not resulted in any significant near-term offtake. Weaker seasonal driven pull and weakness in industrial sectors led to subdued demand.
In the 1st week ending of December 2025, Formic Acid FOB Texas prices dropped by 5.3%. The drop was due to high import arrivals, quite full domestic production and a weak demand, the weeks were following through without any signs of turnaround since a good supply combined with tight buyer’s anticipation cheapened/influenced the market.
As per ChemAnalyst anticipation, the U.S. market for formic acid is expected to remain weak through mid-December 2025 as abundant formic acid imports and domestic production, along with downward pressure from the weak seasonal/industrial demand is expected. Mild weather and inventory depletion may restrain short-term rebound on formic acid, but monitoring methanol prices, trans-Atlantic freight, and possible winter weather changes may be crucial. In the absence of any supply disruptions or sudden demand pull, prices are likely to remain range-bound to bearish in the short term.
