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.
For the Quarter Ending September 2024
North America
In the context of increasing prices for Formic Acid in the North America region during Q3 2024, the market has experienced a notable uptrend. This quarter has been characterized by a dynamic interplay of various factors driving the upward trajectory of Formic Acid prices. Key influencers include a surge in demand from diverse industries such as agriculture, textiles, and manufacturing, bolstered by a shift towards sustainable practices and increased innovation. Additionally, supply chain disruptions, rising freight costs, and constrained supply have exerted upward pressure on prices.
In the USA specifically, the market has witnessed significant price fluctuations, reflecting the highest price changes in the region. The correlation between methanol prices and Formic Acid prices has been evident, with methanol's positive price increase leading to a rise in Formic Acid prices.
Seasonal trends, particularly during the sowing season for major crops, have also contributed to price hikes. Despite a -5% decrease from the same quarter last year, Q3 2024 recorded a 3% increase from the previous quarter, with a 1% price difference between the first and second half of the quarter. The quarter-ending price of USD 830/MT of Formic Acid FOB Texas in the USA signifies a culmination of the overall positive pricing environment witnessed throughout Q3 2024.
APAC
In Q3 2024, the Formic Acid market in the APAC region witnessed stable prices, reflecting a consistent equilibrium between supply and demand dynamics. Various factors influenced market prices, including stable feedstock prices, moderate demand from downstream industries such as textiles and agriculture, and balanced inventory levels. These conditions supported a steady pricing environment throughout the quarter, with minimal fluctuations. However, Japan experienced the most significant price changes within the region, with a -13% decrease compared to the same quarter last year. The quarter-on-quarter change recorded at -2% indicated marginal price adjustments. Interestingly, the comparison between the first and second half of the quarter showed no price variance, highlighting a period of sustained stability in pricing trends. Specifically, the latest quarter-ending price of USD 470/MT for Formic Acid CFR Nagoya in Japan exemplifies the overall stable pricing sentiment observed in the APAC region during Q3 2024. Despite external market influences, the Formic Acid pricing environment remained anchored in stability, with no significant deviations from the established equilibrium.
Europe
During the third quarter of 2024, Formic Acid prices in Europe experienced a notable decline, influenced by various market dynamics. Demand from downstream industries, particularly textiles and agriculture, remained subdued, resulting in stagnant market conditions. Additionally, high port inventories and limited bidding activity contributed to a stable pricing environment. The Netherlands recorded the most significant price changes, with a 21% decrease compared to the same quarter last year. Despite no change from the previous quarter, there was a 2% decline between the first and second halves of the quarter. The overall market sentiment during this period was negative, with prices consistently falling due to weak demand and challenging conditions. By the end of the quarter, Formic Acid prices reached USD 785/MT for FD Rotterdam in the Netherlands. This downward trend highlighted the ongoing struggles within the market as producers faced difficulties in maintaining stable pricing amidst an oversupply situation. In summary, the third quarter of 2024 reflected a challenging landscape for Formic Acid pricing in Europe, characterized by a decline driven by low demand and high inventory levels. The lack of significant purchasing activity from key industries further exacerbated the situation, leading to a consistent decrease in prices throughout the quarter.
MEA
In Q3 2024, the Formic Acid market in the MEA region witnessed a significant increase in prices, with Saudi Arabia experiencing the most substantial price changes. The market was influenced by various factors, including rising freight charges, geopolitical tensions, and increased demand from the downstream sectors. These elements contributed to a bullish outlook for Formic Acid prices, driving an upward trend throughout the quarter. The overall trends indicated a positive correlation between market dynamics and price changes, reflecting a strengthening pricing environment. In Saudi Arabia specifically, the price of Formic Acid saw a notable increase compared to the same quarter last year, recording a decrease of 9%. Moreover, the percentage change from the previous quarter in 2024 stood at 2%, highlighting a consistent upward trajectory in prices. The comparison between the first and second half of the quarter further emphasized the steady price incline. As Q3 2024 ended, the latest price for Formic Acid CFR Jizan in Saudi Arabia reached USD 620/MT, signifying a continued positive pricing trend in the region.
South America
Throughout the third quarter of 2024, Formic Acid prices in South America experienced a significant decline, influenced by several critical factors. The market reported a notable decrease of 9% compared to the same quarter last year, along with an additional drop of 1% from the previous quarter in 2024. Furthermore, the second half of the quarter saw a 2% reduction in prices relative to the first half, indicating a consistent downward trend driven by various market dynamics. Brazil experienced the most substantial price fluctuations, reflecting a continuous decrease in the pricing environment. Factors such as seasonal trends, supply chain disruptions, and currency fluctuations significantly contributed to this decline. The relationship between price changes and prevailing market conditions highlighted a negative sentiment within the sector, culminating in a quarter-ending price of USD 765/MT for Formic Acid CFR Santos in Brazil. This persistent decline in prices underscores the challenging conditions faced by the market and emphasizes the necessity for stakeholders to adapt to the evolving landscape. As market dynamics continue to shift, understanding these influences will be crucial for navigating future developments in Formic Acid pricing.
FAQs
1. What were the key drivers of Formic Acid price movements in Q2 2025?
Price movements were primarily driven by shifts in downstream demand, oversupply, port congestion, and changes in currency strength and feedstock costs.
2. Which regions saw the sharpest drop in price?
Europe (Netherlands) experienced the steepest price decline at -34.27%, followed by Saudi Arabia and Japan.
3. What is the outlook for Q3 2025?
If supply chains stabilize and seasonal demand from agriculture rebounds, moderate price recovery may be seen. However, oversupply risks remain high in several regions.
4. Which sectors are most important for Formic Acid demand?
Key sectors include leather tanning, agriculture (as a silage preservative), rubber processing, and industrial cleaning.
