For the Quarter Ending March 2024
North America
The Formic Acid market in the North America region experienced a challenging first quarter of 2024, with prices steadily decreasing. Several factors contributed to this downward trend. Weak demand from downstream industries such as preservatives and adhesives played a significant role in suppressing prices.
The market also faced supply imbalances, with ample product availability leading to excess inventory levels. Additionally, the overall economic uncertainty and unfavorable trading conditions further weighed on the pricing environment. Looking specifically at the USA, which witnessed the largest price changes, the Formic Acid market followed a consistent downward trajectory throughout the quarter. Compared to the same quarter last year, prices were down by 22%.
The decline from the previous quarter in 2024 was recorded at 8%, indicating a further decrease in prices. Even within the quarter, there was a 2% decline in prices between the first and second half. The quarter-ending price for Formic Acid in the USA stood at USD 800/MT FOB Texas. This price reflects the prevailing negative sentiment and stable pricing environment, with no significant changes observed in the final weeks of the quarter. Overall, the Formic Acid market in the North America region experienced a challenging quarter, marked by decreasing prices and a subdued demand outlook. The market conditions remained bearish, with no signs of immediate recovery.
APAC
The first quarter of 2024 has been characterized by decreasing prices for Formic Acid in the APAC region. Several factors have influenced market prices during this period. Firstly, there has been a decline in demand from downstream industries such as pharmaceuticals, rubber, leather, and pesticides. This subdued demand has put downward pressure on prices. Additionally, there has been ample supply of Formic Acid in the market, further contributing to the decrease in prices. China, in particular, has experienced the maximum price changes during this quarter. The overall trend in China has been a decrease in prices, with a correlation to the decrease in demand and ample supply. The seasonality of the market has also played a role in the price changes, as the first quarter typically sees lower demand compared to other quarters. Comparing the first quarter of 2024 to the same quarter last year, there has been a significant decrease in prices, with a percentage change of -38%. Compared to the previous quarter in 2024, prices have decreased by 11%. However, there has been no significant change in prices between the first and second half of the quarter, with a percentage change of 0%. As the quarter comes to an end, the March 2024 price for Formic Acid in China stands at USD 453/MT FOB Qingdao. Overall, the pricing environment for Formic Acid in the APAC region during the first quarter of 2024 has been negative, with prices experiencing a consistent decrease.
Europe
The Formic Acid market in Europe experienced a downward price trend in Q1 2024. Several factors influenced market prices, including weak demand, oversupply, and limited trading activities. The overall market sentiment was negative, with prices declining throughout the quarter. Belgium, in particular, witnessed significant price changes during this period. The market in Belgium followed the overall downward trend, with prices decreasing by 19% compared to the previous quarter. The price change from the same quarter last year was even more substantial, with a decline of 22%. The price trend in Belgium was influenced by factors such as limited demand, ample product availability, and reduced purchasing activities. The market fundamentals remained weak, with slow market offtakes and elevated inventories among enterprises. It is worth noting that there was a slight increase in prices during the second half of the quarter, indicating a slight recovery in market sentiment. However, this increase was not significant enough to reverse the overall downward trend. The quarter-ending price for Formic Acid in Belgium was USD 775/MT CFR Antwerp, reflecting the negative pricing environment throughout the quarter. Overall, the pricing environment for Formic Acid in the Europe region was negative, with decreasing prices and limited market activity. The market was characterized by weak demand, oversupply, and cautious purchasing behavior.
MEA
The Formic Acid market in the Middle East and Africa (MEA) region experienced a significant decrease in prices during the first quarter of 2024. Several factors contributed to this downward trend. Sluggish demand from the end-user industries, such as preservatives and adhesives, resulted in limited market activity and decreased purchasing orders. Additionally, ample supply and inventory accumulation put pressure on producers to reduce stocks, further depressing prices. The overall weak market fundamentals and subdued consumption contributed to the negative sentiment in the market. In Saudi Arabia, the largest market in the region, the price of Formic Acid witnessed the maximum price changes. The percentage change from the same quarter last year was -46%, indicating a substantial decline in prices compared to the previous year. Furthermore, the percentage change from the previous quarter in 2024 was -11%, reflecting a continued downward trend. The price comparison between the first and second half of the quarter showed a slight decrease of -1%. The quarter-ending price for Formic Acid in Saudi Arabia was reported at USD 605/MT CFR Jizan. This price reflects the overall decreasing sentiment in the market, with prices steadily declining throughout the quarter. In conclusion, the Formic Acid pricing environment in the MEA region, specifically in Saudi Arabia, has been consistently negative, with prices experiencing a significant decrease compared to previous periods. The market has been characterized by sluggish demand, ample supply, and inventory accumulation, resulting in a bearish sentiment.
South America
The Formic Acid market in Brazil during Q1 2024 faced numerous obstacles, resulting in a sustained decline in prices and increasing pressure on industry participants. The underperforming downstream textile sector further exacerbated these challenges, limiting the demand for Formic Acid. Despite attempts to stabilize prices, they continued to plummet due to persistent low buyer demand, squeezing distributors' profit margins. Notably, the weak demand from the Brazilian market compounded the industry's difficulties. Supply disruptions caused by issues at the Panama Canal hindered access to the South American market, yet demand remained weak, perpetuating the trend of low prices. Despite rising feedstock Methanol costs, Formic Acid prices continued their downward trajectory, signaling a mismatch between supply and demand. Consequently, inventory levels surged in storage units, highlighting the accumulation of excess stock amid tough market conditions. In summary, the South American Formic Acid market faced a myriad of challenges, prompting industry stakeholders to make strategic adaptations to navigate through these turbulent times. During March 2024, the price of Formic Acid in Brazil declined to USD 798/ton CFR Santos.
For the Quarter Ending December 2023
North America
This quarter, the price of Formic Acid in North American market declined when compared with the previous quarter. Formic Acid markets in the USA have been sluggish from the past few quarters and the pattern has continued in Q4 2023, with the depression intensifying in new purchase activity. Regional demand remains weak, with downstream manufacturing output being subdued.
In Dec 2023, the buyers remain hesitant for bulk purchases with low purchasing institutions. Due to the decline in demand, there has been an accumulation of inventories. Producers are now facing heightened pressure to deplete stocks by the end of the year.
The surge in Formic Acid supplies in the local market has disrupted the supply/demand balance, leading to a weak pricing trend in the North American region. Prices seem to be in a downward spiral, experiencing a continuous decline as supplies continue to rise while demand remains constrained across the region. With the quarter ending on Dec 2023, the price of Formic Acid in the USA declined to USD 852/ton FOB Texas.
APAC
In Q4 2023, the price trend of Formic Acid in APAC region witnessed a bearish price trend when compared with the previous quarter. In terms of feedstock market, the price trend of Sulphuric Acid and Methanol was weak and adequate inventory level among the significant manufacturing units forced the producers to cap the Formic Acid prices. The downstream industries such as pharmaceuticals, rubber, leather, and pesticides mostly made on-demand purchases, with stable market trading performance. The market transactions were flat, and some inventory was under pressure. Holders were offering discounts to ship, and the focus of negotiations in the formic acid market was sluggish. In Dec, the price of Formic Acid in China declined to USD 488/ton FOB Qingdao. Most downstream queries and purchases were flat, and the cost support was mediocre. The performance of the market trade was steady. The market for Formic acid was steady without any additional aggressive offers or bids from businesses. Businesses downstream had a wait-and-see stance, and their interest in inquiry procurement was mediocre.
Europe
The European Formic Acid market witnessed a sluggish market trend this quarter and the market trades were majorly held on the immediate basis. Muted trading activities along with low level purchases from the enterprises forced the producers to keep their price intact for the week. Suppliers hold their prices in order to lure the buyers for the attractive offers and also provides discounts on the fresh purchases. No firmer bids and offers were offered from the suppliers in the hope for demand recovery. The downstream market still faces lackluster demand with cautiously operating manufacturing venture. With the quarter starting with Oct 2023, the price of Formic Acid in Germany declined to USD 830/ton FOB Hamburg. German Formic Acid market hit their lowest level, while the cumulative gains have been erased this quarter. The demand for Formic Acid from the downstream preservative and adhesive enterprises remains weak and the purchases were majorly held on the need-to basis. Most European players have reported adequate supplies keeping demand suppressed, especially as German shipments have started making their way to the Middle Eastern markets.
MEA
In Q4 2023, Saudi Arabia's advantage over Formic Acid markets has shrunk considerably as trading markets have seen considerable stable to low offers in line with regional drop. Suppliers voiced concerns about adequate product supply as area manufacturing firms reduced run rates. Formic acid trades from China were quiet this week due to Golden Week in Oct 2023 and minimal cargo inflows, which disrupted supply/demand equilibrium. This quarter, German Formic Acid cargos were traded moderately to Saudi Arabia in response to end-user demand. Despite cost support from upstream crude oil owing to the Israel-Hamas war and a jump in upstream values, the Middle East Formic Acid market remained weak due to ample stockpiles and low market fundamentals. In Dec 2023, the price of Formic Acid in Saudi Arabia declined to USD 663/ton CFR Jizan. Commodity markets were hesitant due to conflicting supply and demand concerns. Manufacturers adopted reduced run rates in response to increased energy prices and decreasing use. Suppliers sought to avoid inventory building despite existing high stock levels.
South America
In Q4 2023, the price trend of Formic Acid in Brazil witnessed a decline in the market purchasing activities along with low spot purchasing from the downstream enterprises. In the face of weak demand fundamentals and muted trade fundamentals, Formic acid has remained in a bearish market this week. Following the recent wave of fast price cuts, US export prices remain sluggish. Because of ample existing stockpiles of the commodity and little demand for new purchases, the cost support from upstream crude oil prices owing to geopolitical tensions between Israel and Hamas remains minimal. In Dec, the price trend of Formic Acid in Brazil declined to USD 832/ton CFR Santos. The feeble market of Formic Acid was driven by the downward pressure of numerous downstream customers due to ample inflows of cargos from China and the USA, and the skeptical economy viewpoint in the Brazil along with elevated interest rates. With the adequate supply, the major Formic Acid producers also declined their production rate to clear their existing inventories.
For the Quarter Ending September 2023
North America
In Q3 2023, the price trend of Formic Acid showcased a bearish price trend in the wake of dampening demand from the downstream enterprises and slow market offtakes when compared with the previous quarter. In the USA, the price of Formic Acid faced a downward trend this quarter in the wake of restricting purchasing and weak market fundamentals. With the region's slow economic growth, regional demand remains sluggish in the USA. Increased competition among Formic acid producers and suppliers from Germany and China led to price wars as companies lowered prices to gain market share. Demand for the end-user preservative industry also remains sluggish in the wake of limited trade among the significant manufacturing units, affecting the price trend. Producers are minimizing operational rates and inventories in order to avoid stockpiling in the region. During July 2023, the price of Formic Acid in the USA declined to USD 978/ton FOB Texas. In terms of feedstock, the Methanol market continues on the softer side, lowering their production costs, resulting in such a pricing trend.
Asia Pacific
This quarter, the price of Formic Acid in the Asia Pacific region declined when compared with the previous quarter amid lackluster market fundamentals and limited purchasing activities in the region. In China, low market exchange rates and slow offtake of Formic Acid remain the main reasons for the cost reliability of the product. Suppliers are buying the cargoes according to the prerequisite from the downstream enterprises. The domestic Formic acid market price fell with low market fundamentals in the region. Recently, the price of raw material Methanol was weak and stable, and the market trading fundamentals were also feeble, and the trades were majorly on a need-to basis. The downstream demand from the end-user preservative market was restricted, and inquiries and procurement in the formic acid market were minimal. Reduced profit margins and revenue across major production units had an impact on the price trend for Formic Acid. During September, the price of Formic Acid in China declined to USD 565/ton FOB Qingdao.
Europe
In the European market, the price trend of Formic Acid witnessed a bullish price trend in July 2023 and August 2023 amid high purchasing fundamentals and an increase in demand from the downstream market. Significant Formic Acid producers increase the prices in the wake of rising product demand and gradual increases in purchasing activities. However, exports of Formic Acid from Germany to other European regions traded high due to limited inventories to cope with the market requirement—the demand for Formic Acid from the downstream preservative industries elevated with the healthy demand for fresh stock. In terms of the feedstock market, Methanol prices also surged with high market fundamentals and higher bids and offers from the suppliers to the buyers. However, the Formic Acid prices declined in September 2023 due to sufficient accumulation of inventories among the storage units, which declined the quotations in order to attract buyers for bulk purchases. In Sept 2023, the Formic Acid prices in Germany declined to USD 1078/ton FOB Hamburg.
MEA
In the third quarter of 2023, the market fundamentals of Formic Acid in Saudi Arabia were observed to be on the lower end in the wake of sluggish downstream purchases and cautiously operating enterprises as per the end-user requirement. In Saudi Arabia, the price trend reflected declining market dynamics and feeble market fundamentals. This quarter's Formic Acid market is characterized by slow demand growth and weak market support. With restricted trades among the major production units, Saudi Arabia's imports of Formic Acid from Germany and China have also decreased. Supplier bids and proposals have fallen, and suppliers are hesitant to increase the price trend. In August 2023, the price of Formic Acid in Saudi Arabia declined to USD 1003/ton CFR Jizan. In the Middle Eastern region, there has been no improvement in demand for the downstream preservative industries, and several Formic Acid makers are choosing to curtail product output in line with the sluggish purchases for fresh stocks.
For the Quarter Ending June 2023
North America
When compared with the previous quarter, the Formic Acid market remained lackluster, with low market fundamentals and high product inventory. The downswing in the price trend was attributed to limited buying sentiments and weak cost support from the downstream market. Market sentiment over the weakening global economy, recession fears, and continued banking sector turmoil outweighed concerns about OPEC+'s supply cuts, dragging the outlook for Petrochemical prices lower. The demand for Formic Acid from the downstream preservative market plunged, and the trades were majorly on a need-to basis. Exports of Formic Acid from the US to the South American region also declined with limited requirements for fresh stock. In terms of the upstream market, limited cost support from Methanol declines the production cost of Formic Acid. During May 2023, the price of Formic Acid in the US declined to USD 999/ton FOB Texas. The demand remained unresponsive to the recent talks about stabilization, and uncertainties on the cost side lingered; the rising import offers drove cautious optimism on the part of sellers.
Asia Pacific
Asian Formic Acid markets gained a stance this quarter in the wake of rising Ex-quotation prices and tepid downstream market enterprises. Due to weak demand and decreased spot purchase activity, trade activity was found to be subdued. In Q2 2023, the demand outlook for Formic Acid remains feeble when compared with Q1 2023. In terms of the feedstock market, Methanol prices in the vicinity remain sluggish, and the purchases were on an immediate basis. Exports of Formic Acid from China to India and other Asian regions traded moderately as per the consumer's requirement. The demand for Formic Acid from the downstream preservative industries remains weak, and uncertainty remains among the suppliers about market recovery. In the Chinese market, the fresh stock requirement for Formic Acid remained limited, and market players remained skeptical about increasing the prices. During May 2023, the price of Formic Acid in China declined to USD 719/ton FOB Qingdao. In terms of inventories, the accumulation of stocks and limited demand for fresh stocks hampered the trading fundamentals in the region.
Europe
In Q2 2023, the market fundamentals for Formaldehyde remain strong in Q2 2023 with an increase in purchasing activities from the downstream ventures. However, a price slump in May 2023 was observed due to an increase in production rate among the significant manufacturing units. Nevertheless, the Formic Acid market witnessed a bullish price trend with an increase in trading fundamentals. Due to increasing bids and offers for formic acid in the vicinity, significant producers increased the pricing for the local suppliers. With strong product interest, there is insufficient accessibility to fulfill the geographical demand from the German market, which drives up prices. Notwithstanding a downward adjustment in the market for feedstock Methanol, a robust downstream industry helped to strengthen the Formic Acid purchasing fundamentals. Regarding inventories, the price of Formic Acid was affected by a high demand for new stock and a dearth of available stock. Formic acid exports from Germany to the European market increased as a result of more competitive bids and offers among the major manufacturing units.
MEA
The price of Formic Acid in the Middle Eastern market gained a firmer stance in April 2023 and May 2023 in the face of a rise in regional demand and healthy imports of premium cargo from China and Germany. After Labour Day, the downstream recovery seemed optimistic, and the demand for formic acid increased. In the formic acid market of Saudi Arabia, more rigid expectations have taken the stage. Regional vendors plan to raise prices in May, citing more product spot talks and supply reductions. Inflows of cargoes of Formic Acid from Germany and China also traded strongly in this quarter. However, in June, the market experienced a price drop in the face of limited trading fundamentals and weak market fundamentals. The Methanol- Formic Acid spread contracted, narrowing the profit margin and sales among the significant producers. The inflows of premium Formic Acid cargo declined as the market was self-sufficient with the product availability, declining the price trend. The price trend of USD 1048/ton CFR Jizan was observed in Saudi Arabia during June 2023.
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.
For the Quarter Ending March 2022
North America
In USA, the price of Formic acid surged in the first half of the quarter as feedstock methanol have been on the uptrend which has increased the cost pressure over downstream Formic acid and pressured market participants to keep prices on the stronger side. Overall cost of production has increased further as Caustic soda and Sulphuric acid prices have further strengthened in the regional market as demand pull continued to play key role in pricing dynamics. However, in second half of the quarter, the prices fell due to bearish downstream enterprises. Downstream preservative industries were heard to operate moderately throughout the quarter and were on the lower side towards the end of the quarter due to sufficient stock. In USA, the price of Formic Acid in March was observed to be USD 878/ton Del Texas.
Asia Pacific
In Q1 2022, the price of Formic Acid remained surged throughout the quarter in Asian market. Disturbance in Chinese market and restocking activities due to Spring festival and winter Olympic curbs led to a steep inclination in prices of several commodities including Formic Acid in the Indian market. Meanwhile, firm domestic demand has also remained a major concern for supplier, as their profit intakes have been volatile due to limited product availability. In March, the price of Formic acid in India were surged to record height with the price trend of USD 794/ton CFR JNPT. Prices in China increased throughout Q1 of 2022 as raw material costs are not expected to mellow down owing to production disruptions caused by the government’s winter air pollution control policy which mandates manufacturers to reduce outputs for the months of January and February and continued till mid-March.
Europe
Prices in Germany apparently increased in Q1 2022 all through the quarter because of solid market sentiments and insufficient product accessibility. The company's downstream preservative endeavours product stayed in high demand. Since domestic output was insufficient to meet need in Netherlands, imports were additionally hampered by critical expansions in freight costs. This trend was brought about by limited methanol production in the region joined with a solid downstream demand. European market has been seeing aggravation because of extravagant climb in energy cost which shook the market elements of the locale. Due to stringent shortage of raw material in the midst of reliable bounce back monetary exercises, costs of a few products soar in a small span of time. In Germany, the price of Formic Acid in March were observed to be USD 910/ton FD Hamburg.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the Formic Acid market in the North American region showcased an upward trajectory after the increased prices of feedstock Methanol. US feedstock methanol and downstream Formic acid production have seen extreme drought conditions in the weeks after Hurricane Ida. This made landfall at Louisiana forcing shut Methanex’s Geismar plant and YCI’s St. James Methanol plant for major part of September, resulting in tight supply from October and increasing the overall cost production for Formic Acid in the year-end. Demand from various industries outperformed production while the Liquefied Natural Gas prices remained high causing energy mix mismatches across plants in USA. Thus, the price discussions fluctuated from USD 701/MT in October to USD 757/MT Texas (USA) in December.
Asia Pacific
In Asia, the Formic Acid prices advanced throughout the fourth quarter backed by the upward momentum of feedstock Carbon Monoxide. India imports Formic Acid mainly from China, if any disturbance in Chinese market, it creates a supply disruption to India. The Q4 disturbance in Chinese market was due to energy related issues that has decreased the output of several raw materials including Formic Acid. This led to steep escalation of Formic Acid prices in the Asia Pacific region. Also, the demand for Formic Acid from pharmaceutical, textile, leather, agrochemical, and other sectors remained high across the region, which supported this overall spike in Formic Acid prices. Thus, the prices of Formic Acid rose effectively and settled at USD 684/MT CFR basis India in December.
Middle East
In Q4 of 2021, Formic Acid market experienced mixed sentiments in the Middle East. Initially, in October and November, Formic Acid prices appeared to be bearish in Saudi Arabia as the feedstock methanol prices declined. Later, the sky-high energy prices in China impacted the Formic Acid market in Saudi Arabia, as the imports come majorly from China. Then the prices gradually increased with increasing freight charges, owing to the reduced import volumes from China. Low inventory levels, insufficient product supplies and firm demand from the downstream textile industry was observed. Formic Acid prices in Saudi Arabia reached USD 667 per MT CFR basis in October.
For the Quarter Ending September 2021
North America
In North America, Formic Acid prices witnessed an upward trajectory during the third quarter of 2021 backed by the hike in the feedstock Methanol prices. A severe fall in the production levels of feedstock Methanol was observed due to disruptions caused by Ida hurricane that made landfall in the gulf coast of USA at the end of August. For instance, Methanex’s Geismar plants and James Methanol went offline for around 2 weeks and thus resulted in a snug Methanol supply during this timeframe that consequently impacted the production of Formic Acid. Sturdy demand and the limited raw material availability pushed the prices of Formic Acid in this quarter.
Asia
During Q3 2021, a steep climb in the prices of Formic Acid was noted in the Asia Pacific region followed by strong offtakes from the downstream industries amidst tight supplies. In China, Formic Acid prices soared throughout the quarter backed by the upward momentum of feedstock methanol. In China, Methanol is majorly produced by the coal route and extreme coal scarcity led to consistent hikes in Methanol prices since the beginning of Q3 that consequently fumed Formic Acid values in the regional market. In India, the Formic Acid market experienced the same trend as other Asian countries during this quarter. Prices rose drastically in effect of sturdy demand from textile industry and spike in the prices of imported coal as well as feedstock values. Additionally, exorbitant freight charges further sent ripples to the values of Formic Acid in the domestic market. Hence, Formic Acid (85%) Ex- Mumbai (India) prices witnessed a substantial increase from USD 876.99/MT to USD 1656.53/MT during the third quarter.
Europe
In Europe, the Formic Acid market sentiments remained high throughout the third quarter backed by the strong demand from the downstream manufacturers. Surging feedstock prices due to expensive and lower imports from the USA as an impact of Ida hurricane also led to the increment in the values of Formic Acid in this quarter. In addition, many manufacturers were compelled to curtail their production rates in Europe due to the energy crisis that also affected the prices of Formic Acid. However, the demand from domestic and overseas market remained stable during this timeframe that also aided the pricing trend of Formic Acid in Europe.
