For the Quarter Ending September 2025
North America
• In the USA, the Formic Acid Price Index fell by 6.10% quarter-over-quarter, driven by demand weakness.
• The average Formic Acid price for the quarter was approximately USD 897.67/MT, reflecting muted spot activity.
• Formic Acid Spot Price remained range-bound on FOB flows; Formic Acid Price Index signalled weakness.
• Formic Acid Production Cost Trend stayed stable as feedstock deliveries remained uninterrupted, preserving producer margins.
• Formic Acid Demand Outlook indicated muted offtake from leather, rubber, agriculture, weighing on Price Index.
• Formic Acid Price Forecast anticipates modest near-term downside before seasonal restocking supports firmer market conditions.
• Formic Acid Price Index weakness reflected inventory accumulation and logistical bottlenecks that pressured export competitiveness.
• Formic Acid Spot Price volatility remained low, supported by steady operations and distributor inventory management.
Why did the price of Formic Acid change in September 2025 in North America?
• Seasonal downstream demand softened across agriculture and leather, reducing immediate consumption and pressuring spot liquidity.
• Port operations remained smooth; distributors deferred purchases, enabling inventory build-up and softening price momentum.
• Stable feedstock availability and moderate production costs removed urgency for producer restarts, limiting price impulses.
APAC
• In Japan, the Formic Acid Price Index rose by 0.62% quarter-over-quarter, driven by currency-driven costs.
• The average Formic Acid price for the quarter was approximately USD 432.00/MT, reflecting steady imports.
• Formic Acid Spot Price rose on yen weakness, lifting Formic Acid Price Index modestly higher.
• Formic Acid Price Forecast indicates near-term stability as Formic Acid Production Cost Trend remains subdued.
• Formic Acid Demand Outlook moderate; textiles, leather, feed support consumption, stabilizing Formic Acid Price Index.
• Import flows from China kept stocks ample, constraining upside; Formic Acid Spot Price remained subdued.
• Domestic output limited while imports filled demand; suppliers ran, affecting Formic Acid Production Cost Trend.
• Downstream derivative margins tightened; rubber and textile converters held purchases, tempering Formic Acid Price Forecast.
Why did the price of Formic Acid change in September 2025 in APAC?
• Steady China imports ensured ample supply, putting downward pressure on spot and CFR landed prices.
• Yen weakness and carbon pricing elevated landed costs, transmitting cost-push into domestic Price Index readings.
• Soft industrial demand, seasonal tyre and agricultural cycles, and cautious buying limited sustained upward momentum.
Europe
• In Spain, the Formic Acid Price Index fell by 14.845% quarter-over-quarter, reflecting weaker downstream demand.
• The average Formic Acid price for the quarter was approximately USD 659.67/MT supported by imports.
• Formic Acid Spot Price volatility remained low; balanced imports and steady demand limited movement thereby.
• Formic Acid Price Forecast suggests near-term weakening driven by slack downstream buying and ample imports.
• Formic Acid Production Cost Trend shows upward pressure from higher regional methanol and energy costs.
• Formic Acid Demand Outlook remains stable supported by livestock feed, textiles, leather tanning, agrochemical use.
• Formic Acid Price Index patterns reflected distributor inventory builds and moderated export demand, capping upside.
• Formic Acid supply reliability from China and European producers, with efficient Algeciras operations, limited dislocations.
Why did the price of Formic Acid change in September 2025 in Europe?
• Muted downstream offtake reduced buying from livestock and leather sectors, pressuring Formic Acid spot demand.
• Regional methanol tightness and higher energy costs raised production expenses, but imports limited sustained increases.
• Smooth port operations maintained inventories, reducing urgency and dampening price upside despite intermittent demand spikes.
MEA
• In Saudi Arabia, the Formic Acid Price Index rose by 3.73% quarter-over-quarter, driven by demand.
• The average Formic Acid price for the quarter was USD 584.33/MT, reflecting steady import procurement.
• Formic Acid Spot Price held firm amid tight imports and feed-sector buying, supporting spot discipline.
• Formic Acid Price Forecast points to upside as inventories tighten and contract negotiations favour importers.
• Formic Acid Production Cost Trend subdued with stable methanol feedstock and freight costs limiting pass-through.
• Formic Acid Demand Outlook constructive, driven by poultry, livestock feed, leather and expanding agrochemical activity.
• Formic Acid Price Index volatility peaked in August eased into September as seasonality and logistics balanced.
• Export demand, port reliability and minimal domestic capacity reinforced import-dependent Formic Acid pricing during the quarter.
Why did the price of Formic Acid change in September 2025 in MEA?
• Improved methanol logistics increased Gulf feedstock movement, boosting availability and easing upward Formic Acid pressure.
• Silage-additive seasonal demand tapered mid-September, reducing immediate restocking and lowering short-term Formic Acid offtake volumes.
• Stable freight and methanol input costs with uninterrupted imports kept supply adequate for domestic consumption.
South America
• In Brazil, the Formic Acid Price Index fell by 1.17% quarter-over-quarter, reflecting subdued downstream demand.
• The average Formic Acid price for the quarter was approximately USD 676.33/MT per CFR reports.
• Formic Acid Spot Price tightened on delayed Chinese exports and Santos congestion, tightening Price Index.
• Formic Acid Price Forecast expects modest autumn gains as silage demand draws inventories, supports procurement.
• Formic Acid Production Cost Trend rose due to firmer methanol feedstock and higher freight charges.
• Formic Acid Demand Outlook shows robust silage and feed buying, offset by softer leather orders.
• Formic Acid Price Index movements tracked distributor stock draws, export shifts toward China, converter buying.
• Importer supply resilience from USA and China mitigated Santos unloading delays, preventing acute domestic shortages.
Why did the price of Formic Acid change in September 2025 in South America?
• Weaker industrial and leather demand reduced incremental offtake, weighing on pricing despite agricultural silage support.
• Rising methanol feedstock and freight costs increased landed import costs, pressuring margins, supporting cautious buying.
• Chinese export congestion combined with Santos port bottlenecks tightened spot availability, prompting precautionary stock building.
For the Quarter Ending June 2025
North America
• Formic Acid prices in the USA rose by 1.20% in Q2 2025, reaching an average of USD 956/MT.
• The market was supported by steady demand from the leather and rubber industries.
• Supply remained stable, aided by consistent domestic production and unimpeded import flows.
• Downstream sectors benefited from lower energy costs and improved logistics.
• Inventory buildup was avoided as buyers maintained just-in-time procurement strategies.
Why did the price of Formic Acid change in July 2025 in North America?
• Prices rose due to stable demand from leather and rubber processing.
• Feedstock methanol prices remained firm but did not significantly affect margins.
• Imports flowed consistently, with no major supply chain disruptions.
• Inventory levels were efficiently managed, avoiding overstocking.
South America
• Brazil’s Formic Acid prices declined sharply by 11.96% in Q2 2025, averaging USD 684/MT.
• Weak demand from agriculture and tanning sectors led to excess inventory.
• Imports from Europe and Asia exceeded consumption, straining storage capacity.
• The Brazilian Real’s weakness against the USD also discouraged fresh imports.
• Some producers offered deep discounts to clear backlogs, leading to steeper price drops.
Why did the price of Formic Acid change in July 2025 in South America?
• Oversupply and weak downstream demand led to a double-digit price decline.
• Agricultural demand softened due to late harvesting and low spraying activity.
• Leather exports fell, impacting tanning chemical consumption.
• Currency devaluation increased import costs, reducing import appetite.
APAC
• Formic Acid prices in Japan dropped by 11.96% in Q2 2025 to USD 429/MT.
• Demand from electronics and industrial cleaning sectors was subdued.
• Domestic manufacturers reduced operating rates due to soft offtake.
• Imports from China and Korea faced delays, but local demand was too weak to firm up prices.
• Overall sentiment was bearish across downstream channels.
Why did the price of Formic Acid change in July 2025 in APAC?
• Downstream demand weakened, particularly in precision cleaning and electronics.
• Operating rates at domestic plants were cut in response to low orders.
• Imports slowed, but local demand could not absorb existing inventories.
• Market sentiment remained bearish amid economic uncertainty.
Europe
• The Netherlands saw a sharp decline in Formic Acid prices, falling 34.27% in Q2 2025 to USD 829/MT.
• Port congestion and weak industrial activity significantly reduced offtake.
• High opening inventories from Q1 worsened the oversupply situation.
• Feedstock prices fell, compressing producer margins and encouraging selloffs.
• Regulatory uncertainty in chemical exports further dampened sentiment.
Why did the price of Formic Acid change in July in Europe?
• Prices plunged due to severe oversupply and reduced industrial usage.
• Delayed exports caused a stockpile that was hard to liquidate.
• Soft demand from construction, coatings, and textile industries drove bearish trends.
• Margins were squeezed due to falling feedstock and final product prices.
Middle East & Africa
• Saudi Arabia experienced a 12.07% drop in Formic Acid prices in Q2 2025, averaging USD 563/MT.
• Sluggish demand in the agriculture and leather sectors weighed heavily on the market.
• Import volumes from Asia remained stable, contributing to excess availability.
• The domestic market showed limited offtake as projects were delayed.
• Government procurement remained focused on essential chemicals, sidelining formic acid.
Why did the price of Formic Acid change in July 2025 in MEA?
• Prices fell due to subdued demand from tanners and agricultural blenders.
• Domestic project delays reduced chemical consumption.
• Imports from China and India continued at regular pace, worsening oversupply.
• Market participants shifted focus to other higher-margin chemicals.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, the USA Formic Acid market surged by 11.18%, driven by robust downstream demand and tightening logistical conditions. A key catalyst was the strong rebound in the agrochemical and pharmaceutical sectors. In the U.S., FMC Corporation reported a 23% year-over-year increase in agrochemical sales in Q4 2024, showcasing heightened demand for silage preservatives and animal feed additives—primary uses of formic acid.
Additionally, the pharmaceutical sector displayed solid growth during the last month of the quarter, with Pfizer and Johnson & Johnson reporting double-digit revenue gains, further driving consumption of formic acid as a key intermediate. While methanol feedstock prices remained mostly stable, rising natural gas prices—exacerbated by a severe polar vortex—have raised concerns about higher production costs.
Simultaneously, logistical disruptions due to adverse weather and labour agreement expirations at East and Gulf Coast ports heightened transportation challenges. This supply-side pressure, combined with robust and diversified demand, created upward momentum in pricing. As a result, formic acid prices in the APAC region climbed significantly, reflecting tightening market fundamentals.
APAC
During the first quarter of 2025, the Asia-Pacific (APAC) Formic Acid market witnessed a 2.55% price increase, driven by a rebound in downstream demand, especially from the agricultural and pharmaceutical sectors. In China, rising pesticide production, as reported by the National Bureau of Statistics, reflected a strong seasonal demand for formic acid as a preservative in silage and feed. The agrochemical sector's 11.3% growth rate in pesticide output underscored this surge. Simultaneously, the pharmaceutical industry's 10.2% increase in chemical medicine output supported higher consumption of formic acid as a chemical intermediate. While methanol—the primary feedstock—maintained price stability, enhanced logistics efficiency and adequate methanol availability ensured consistent supply. Despite the recent Lunar New Year stillness in the mid-quarter, demand resumed as factories normalized operations and restocking began. Although export volumes slightly declined, domestic demand remained strong enough to outweigh any bearish effects. This balance between robust demand and stable production created upward momentum, resulting in a modest but notable increase in formic acid prices across the APAC region.
EUROPE
In Q1 2025, Formic Acid prices in the European market rose by 5.98%, reaching 815 USD/MT FOB-Hamburg. This upward price movement was primarily driven by a combination of rising production and logistics costs, despite demand holding steady. Methanol, the key feedstock for formic acid, maintained elevated prices due to robust demand from downstream industries like MTBE and paints, contributing to costlier production. Meanwhile, Red Sea disruptions and vessel rerouting around Africa significantly increased ocean freight rates, exacerbating supply chain expenses. European ports—including Hamburg, Rotterdam, and Genoa—experienced persistent congestion due to workforce shortages, strikes, and increased traffic volumes, further inflating logistical costs and delaying regional distribution. These supply-side pressures intensified as winter weather conditions and gas market instability, stemming from curtailed Russian supplies, added volatility to manufacturing inputs. While demand from the agrochemical and pharmaceutical sectors remained resilient, it was the compounded effect of elevated feedstock costs and prolonged shipping disruptions that ultimately drove the region's formic acid prices higher this quarter.
MEA
In the Middle East, Formic Acid prices increased by 2.54% during the Q1 2025, primarily driven by rising methanol feedstock costs and regional import dynamics. Saudi Arabia, a key regional market, saw stable domestic production supported by Chinese imports. However, methanol prices climbed steadily, exerting upward pressure on formic acid production costs. Although the Chinese Spring Festival temporarily disrupted shipments, existing inventories helped maintain supply, mitigating immediate shortages. Freight and logistical costs also remained under scrutiny, further influencing the upward pricing trend.
Demand from key downstream sectors like agrochemicals and pharmaceuticals remained steady but not robust, with most buyers adopting a cautious, need-based purchasing strategy. Despite this demand stagnation, the rising methanol costs have gradually been passed on to formic acid prices. Additionally, firms focused on inventory accumulation and capacity expansion, reflecting confidence in future demand. While the region's manufacturing index softened slightly, effective supply chain management helped balance supply-demand dynamics, allowing formic acid prices to rise moderately across Q1.
South America
In the first quarter Q1 2025, Formic Acid prices in South America edged up by 1.84%, influenced by minor yet impactful factors across supply and demand channels. While the Brazilian market maintained overall price stability week to week, logistical delays from U.S. exports—driven by adverse weather and labour shortages—led to extended delivery timelines. This, coupled with modest increases in freight costs in the early quarter and restocking activities among Brazilian producers, contributed to slight upward pressure on prices.
Steady demand from Brazil’s agrochemical and leather sectors continued to support baseline consumption, especially during the planting season for crops like soybeans and corn. Despite subdued new order inflows from importing nations such as Argentina and Slovenia, Brazilian manufacturers demonstrated increased confidence, marked by job creation and a rebound in input purchasing.
Stable methanol feedstock prices helped temper more drastic price movements, but optimism in Brazil’s industrial outlook and strategic restocking amid logistical bottlenecks collectively nudged Formic Acid prices higher by the quarter’s close.
For the Quarter Ending December 2024
North America
The Formic Acid market showed a slight upward trajectory in the fourth quarter of 2024, with a 1.70% increase in prices compared to the previous quarter. This stability and modest rise were driven by several key factors impacting both supply and demand dynamics.
On the supply side, production remained steady, with major manufacturers in the U.S. operating without significant disruptions. The methanol market, a critical feedstock for Formic Acid, saw rising prices due to production outages in the U.S. and Europe, tightening availability and supporting the price trend. Despite logistical challenges, such as rising shipping costs and delays at various U.S. ports, Formic Acid manufacturers maintained consistent output.
Demand for Formic Acid remained stable, supported by key sectors such as agriculture, leather processing, and chemical synthesis. The agricultural sector, particularly silage preservation, continued to drive demand, while the leather and textile industries also contributed to market stability. Additionally, while feedstock costs rose due to natural gas price hikes, Formic Acid production capacity remained adequate to meet market needs.
External factors, such as geopolitical uncertainties and seasonal disruptions, were closely monitored, but did not lead to significant market fluctuations. As a result, Formic Acid prices saw a modest increase, reflecting the overall balance of supply, demand, and external economic factors.
APAC
In the fourth quarter of 2024, the formic acid market in China exhibited a modest upward shift, reflecting a 1.33% increase from the previous quarter. This trend was largely driven by stable production levels and controlled supply-side dynamics, even as demand from key downstream sectors remained relatively subdued. The stable operation of major domestic plants and the resumption of several methanol production facilities contributed to a balanced supply scenario, mitigating any significant price fluctuations. However, challenges in the downstream industries, particularly in the pesticide and textile sectors, led to a more cautious purchasing approach, focusing on meeting immediate demand rather than driving substantial growth. Despite a decrease in the demand for formic acid due to the traditional off-season, particularly in the agrochemical and textile sectors, the overall market maintained its equilibrium. The cautious approach from downstream industries, combined with favorable supply-side conditions, helped sustain stability in the formic acid market. Moreover, macroeconomic factors, such as the Chinese Politburo’s plans for a "moderately loose" monetary policy, are expected to provide future support to the market, potentially stimulating demand in the coming months. As a result, the market concluded the quarter with steady prices and stable dynamics across both supply and demand.
Europe
During the fourth quarter of 2024, the Formic acid market demonstrated a notable 4.14% increase, driven by a combination of supply-side constraints and steady demand from key sectors. The European market faced logistical challenges, with congestion at major ports like Hamburg and disruptions in global shipping routes, particularly in the Red Sea, pushing transportation costs higher. These logistical pressures, alongside fluctuations in raw material costs, notably methanol, which saw rising prices, contributed to an upward adjustment in production costs. Despite weak demand from downstream sectors such as textiles and agriculture, where challenges like oversupply and geopolitical factors dampened consumption, supply-side factors played a crucial role in maintaining market stability. The European Formic acid market experienced tight-to-balanced supply conditions due to reduced operational rates at production facilities and limited imports, further tightening availability. The demand remained relatively stable, with the agriculture and leather sectors continuing to drive consumption, particularly for preservation and tanning purposes. Although macroeconomic uncertainties and seasonal factors created cautious procurement activity, the overall market managed to balance moderate demand with supply pressures, leading to a steady upward trend in prices.
South America
Over the last quarter, the Brazilian Formic Acid market experienced a modest 1.76% decrease in pricing, reflecting a stable yet slightly declining trend. The overall market dynamics were shaped by steady demand from key sectors such as agriculture, leather, and textiles, which rely on Formic Acid for various applications. The agricultural sector, driven by favorable climatic conditions and sustainable farming practices, maintained consistent demand, while the leather industry's production remained stable. However, moderate demand fluctuations from industries like textiles and agrochemicals contributed to the slight price reduction. On the supply side, steady production levels were supported by domestic and international suppliers, particularly China. The absence of significant disruptions or maintenance schedules among major producers ensured continuous availability. Despite rising feedstock costs, such as methanol and freight expenses, Formic Acid manufacturers adjusted their strategies cautiously, leading to stability in overall supply. Economic indicators such as the Industrial Entrepreneur Confidence Index and the Consumer Confidence Index presented mixed signals, indicating a cautious industrial outlook but resilient consumer sentiment. These factors, combined with global uncertainties, such as geopolitical tensions and logistical challenges, tempered the price dynamics.
MEA
In the fourth quarter of 2024, the Formic Acid market demonstrated stable conditions, with a slight 1.74% increase in overall pricing compared to the previous quarter. This trend was largely driven by a combination of factors impacting supply and demand. Production levels in Saudi Arabia remained steady, while imports from China continued to support the domestic market. Although there were fluctuations in feedstock costs, particularly methanol, the market-maintained balance, with producers managing supply and inventory effectively despite logistical challenges, such as disruptions in the global shipping industry. Demand from key sectors, including agriculture, leather, and pharmaceuticals, remained consistent but somewhat stagnant. The pharmaceutical sector, in particular, experienced firm demand, but overall industrial activity showed a slight slowdown compared to earlier in the year. On the supply side, the Middle East and Africa regions saw moderate supply availability, aided by steady methanol supply and production rates. Economic factors such as the increase in the Wholesale Price Index, which rose by 1.4% year-on-year in November, indirectly supported the stability of Formic Acid demand. Despite this, a decline in food product and textile demand posed short-term limitations. Overall, the market maintained a steady trajectory, with modest price increases influenced by cost pressures from feedstock and supply chain dynamics.
