During first half of November 2025, the USA's Formic Acid market-maintained stability in week 1 and again in week 2, demonstrating a flat, sideward movement over the previous 12-weeks of pricing. During this same period, methanol (the main raw material used to manufacture Formic Acid) dropped by 3.13%. Both domestic production and export flows to India and Saudi Arabia were constant, neither experienced any port disruptions and continued to be stable in both supply and demand. Key sectors in which there has been consistent demand (animal nutrition, link processing) and slowed down administrative processes due to the government shutdown, however, have continued to enable stable market conditions.
Formic Acid FOB Texas prices held steady in the first week of November 2025 while absorbing a 3.13% decline in methanol feedstock without passing that on to customers; the overall environment was characterized by a calm regulatory environment. The second week of November also exhibited no change in Formic Acid prices, consistent with the preceding 12 weeks of no upward or downward movement and maintaining the same prevailing sentiment, sustained production rates by producers, and balancing of supply and demand overall.
Despite no significant changes in required production rates or supply shortages from the previous week's volatility, Formic Acid was still being consumed at a modest rate in most segments of Agriculture, Animal Nutrition, Leather Industry, Rubber, and Industrial Chemicals. No sudden shifts were apparent due to no actions from either federal new policies or EPA Rescheduling regarding pest control.
There were limited financial incentives for farmers due to Government shut down, but Formic acid production remained consistent and operational. As a result, supply remained balanced and procurement of materials was facilitated by uninterrupted Texas Plant Operations and increased Feedstock Availability from reduced Methanol costs. Procurement and subsequent Inland/Export logistic dispatch continued to occur on a timely basis. The majority of Formic Acid Export Activity to India and Saudi Arabia remained unchanged as a result of consistent and uninterrupted Vessel Scheduling, as well as limited Port Congestion Issues due to Government Shutdown. All of these factors contributed to sustaining normalised levels of Procurement and Production for Formic Acid; therefore, price remained a tight range without any visible Scarcity nor Overhang of stock.
As per ChemAnalyst, the US formic acid market is anticipated to remain stable until the end of November 2025 due to balanced states of supply and demand, as well as relief from feedstock shortages due to regulatory concerns and plant closures. Normal operations and exports will continue to promote a stable equilibrium in the market, however RIN credits, tariffs, and any updates from the EPA also need to be closely monitored. There are many different industries pulling at the market, and as a result the US formic acid market could withstand any future disturbances.
