For the Quarter Ending March 2023
North America
In the US market, the Formic Acid prices followed a bullish price trend with an uptick in trading activities. However, the price attained a steady trend towards the end of the quarter. The healthy purchasing activities were aided by low product inventories and higher product bidding. The demand for the new stocks increased with rising spot price discussions. In the wake of severe weather conditions, the production rate of Formic Acid remains impacted in H1 2023, along with rising power charges. In the meantime, several Gulf Coast producers reduced operation rates due to the Arctic blast. In Jan 2023, the price of Formic Acid in the US market surged to USD 1026/ton FOB Texas.
Asia Pacific region
In Q1 2023, the price of Formic Acid in the Asia Pacific region declined in the first two months in the wake of being affected by limited trading and gradual utilization of inventories. The demand remained unresponsive to the recent talks about stabilization, and uncertainties about the costs side lingered. In China, trading activities slumped with the Lunar New Year holiday, and declining demand further supported the bearish price trend. In Feb 2023, the Formic Acid price in China declined to USD 672/ton FOB Qingdao. Towards the end of the quarter, the trading activities picked up the pace, and the low Formic Acid operating rate and contracted supply increased the price trend. The downstream preservative market also fluctuated on a narrow range with continuous product utilization from the consumer’s end.
Europe
In the European market, the price of Formic Acid declined in January due to adequate stocks held from previous months. In fact, with rising demand and healthy purchases for fresh stocks, the price trend gained a stance in Feb 2023 and March 2023. In Germany, continuous utilization of inventories resulted in higher production rates among the enterprises to cope with the downstream preservative demand. Spot discussions of Formic Acid increased, and major producers increased their export prices for the European and Asian markets. In March 2023, the Formic Acid price surged to USD 958/ton FOB Hamburg. Freight charges struggled with low transportation costs and sufficient container availability.
For the Quarter Ending December 2022
North America
In Q4 2022, the price trajectory of Formic Acid showcased the downtrend with lower bidding of products and feeble market fundamentals. In Dec, the price of Formic Acid slipped to USD 1023/ton FOB Texas. The Formic Acid prices lose stance due to rising production rates among the companies and low market sentiments. Amidst fluctuations in upstream Natural Gas prices and deflated freight costs, the price of the majority of Methanol derivatives declined during this timeframe. No firm offers for Formic Acid were received among the suppliers, and the market continued to see a lack of selling interest. Exports from the U.S. to South America also declined with sufficient product availability.
Asia Pacific region
The price of Formic Acid declined in H1 2022 in the Asia Pacific region due to weak market fundamentals and weak product demand. Supply of Formic Acid was on the higher end, prompted by increased production rate among the manufacturing units and lower trading of products from China to other Asian and European nations. However, in H2 2022, the price gain stance was due to declined product availability and improved product demand. The downstream textile and preservative companies met market demand with sufficient stockpiles. Formic Acid prices declined with weak market fundamentals due to high inventory levels, sluggish domestic demand, and low demand. The increase in Covid cases also affected the overall purchasing activities in the Petrochemical industry. During December, the price of Formic Acid in China hovered at USD 683/ton FOB Qingdao.
Europe
In Q4 2022, Formic Acid in Europe witnessed a steep drop in price trends on account of weak purchase activities and weak pricing dynamics. After exporting goods earlier than expected, retailers had an inventory surplus, affecting the market fundamentals. Significant producers' profit margins and revenue are tumbling due to improving netbacks, increasing production costs, and brisk demand. In Dec, the price of Formic Acid in Germany slipped to USD 911/ton FOB Hamburg. The Formic Acid market has been trending lower as oversupply and low demand from the preservative sector suppress any sparks of activity. Market players show limited interest in exported materials due to sufficient product availability and muted trading activities.
For the Quarter Ending September 2022
North America
In Q3, the price of Formic Acid in the USA surged with the succeeding month. A supply/demand equilibrium disruption occurs when major enterprises cut production due to a lack of product availability. With gradual accelerating demand from the downstream preservative industry, new stock demand remains robust. Rising fuel and transportation costs affected the market for conveying cargo within the region. In September 2022, the price of Formic Acid in the USA surged to USD 1099/ton FOB Texas. Due to the limited supply and low inventories in the domestic market, market fundamentals were impacted. Domestic demand for Formic acid was reported bullish, prompted by healthy demand from the downstream preservative market.
Asia Pacific region
In Q3 of 2022, the price trend of Formic Acid showed a downward trajectory with every subsequent month, along with deterred trading dynamics and sufficient product availability. In the midst of the declining demand from the downstream additive industry, regional Formic Acid producers cut their production as accumulation pressurized them to clear their current stocks. Sentiments of Formic Acid in the region remain thin, with affected margins and sales from the end-user industries. In terms of the feedstock market, Methanol prices stabilized this week due to tepid trading dynamics and utilization of existing inventories. In India, the price of Formic Acid slipped to USD 765/ton Ex-Mumbai.
Europe
In Europe, the Formic Acid market rose with rising feedstock Methanol prices and oscillation in the upstream Natural Gas market. In September 2022, the price of Formic Acid in Germany surged to USD 943/tonne FOB Hamburg. With European spot power prices surging, the production cost among the significant manufacturing units increased, affecting the price trend. Limited supply with elevating upstream Methanol prices in the region helped the Formic Acid market to elevate. Tightening supply had also sent Methanol prices soaring, with high costs forcing production cuts, especially in the downstream preservative industry. Record high operating cost has been forcing industrial consumers to limit production due to the unavailability of Formic Acid and fluctuations in feedstock Methanol price.
For the Quarter Ending June 2022
North America
In this quarter, the prices of Formic Acid dropped in May due to the surging production rate with revision in price trend for oversupplies suppliers. Feedstock Methanol prices also fluctuated on the lower end, affecting the prices of Formic acid in the regional market. However, the prices of Formic acid remained on the higher end, which caused fluctuations in the price trend. The supply/demand equilibrium improved with upcoming new capacities operating along with other plants and significant maintenance. Formic Acid prices surged compared with the previous quarter with strong market sentiments in the USA. However, acceleration in downstream demand, mainly from the preservative sector, surged the product's prices in June.
Asia Pacific region
In Q2 2022, the prices of Formic Acid slipped in June due to oversupplies of products in manufacturing units and ports of the major trading countries. During H1, the prices surged due to the limited supply of feedstock Methanol in the region with low purchasing activities of Formic Acid. However, in the second half, product inventories increased due to deterred demand in other Asian countries. With weak demand from India, Japan, and the Southeast Asian region, export from China is also affected by weak market sentiments. Ample inflows of Methanol in the region further pressurized the producers with affected margins and narrowing profit.
Europe
In Q2 2022, the price of Formic Acid slipped in the first half and revived in the final half due to fluctuations in feedstock Methanol and the downstream preservative market. Prices dropped in May due to accelerating production rates in Germany, increasing the exports to other European regions resulting in oversupplies in the region. However, in H2, supply chain woes and product shortage caused the recession trading, which caused this price hike. Import of Formic Acid in Germany from the Middle eastern market surged due to strong purchasing activities and surging interest of traders in this product. Demand from downstream preservative industries remained on a higher note, and rising interest from the industries forced the producers to meet the demand from the end-user industries.
