With Fluctuations in Feedstock Costs, Formic Acid Display Volatility in the Global Market
- 17-Jun-2022 3:13 PM
- Journalist: Robert Hume
Mumbai, India- With flooding production rates among the significant operating units in China and adequate stock of products, the prices slipped in the Indian market. On 17th June, the price of Formic Acid in India slipped to USD 1077/ton Ex-Mumbai.
However, downstream preservative endeavors increased the production costs because of beneficial interest and purchasing interest among the end-users. Feedstock Methanol costs likewise slipped due to sufficient stock from Iran and Saudi Arabia, bringing oversupplies of the item on the lookout. Conveying demands for around 100,000 MT of methanol stacking from Saudi Arabia, Qatar, and Oman in June to China, Taiwan, and South Korea.
Cost conversations were muted on June 3 as China was away for the Dragon Boat festivity, dropping the expenses of Formic acid since then for its domestic market and exports to India.
In Germany, the costs of Formic Acid flooded because of high upstream Methanol values and strong demand from additive enterprises. Exports from Germany to the Middle eastern market surged because of solid buying exercises and increasing traders' revenue in this product.
In Turkey, strong market fundamentals and insufficient product accessibility provoked the demand in the local market. Because of oversupplies of Formic acid in China, they redirected its course to Turkey with a revised cost pattern. Currency depreciation and high energy and utility expense constrained the local producers to cut their production rate for a short period of time.
As per ChemAnalyst, the price of Formic Acid will slip in the forthcoming period with weak purchasing and low consumer interest. Fluctuations in Natural Gas and Methanol will account for the price trend. In the European region, it is expected that costs of Formic acid will stay stable with minute changes in the cost pattern. Due to a fire incident in the Freeport LNG terminal, the exports of Natural gas to Europe diminished, prompting more gas accessibility in the US and decreasing costs in the global market. It will be more likely to control the costs of the Natural Gas derivative market and limit the costs of Formic acid from increasing further. However, the downstream preservative market can also regulate the prices of Formic acid.