Recently, the domestic market for 85% industrial formic acid has shown a pattern of first stabilizing and then rising, followed by a sideways stalemate. As of August 17th, the benchmark price of 85% industrial grade formic acid was 1900 yuan/ton, a decrease of 2.7% from the beginning of the month. The market is fiercely contested between long and short positions, and prices are influenced by inventory levels, export orders, and equipment resumption progress, resulting in an overall weak equilibrium situation.
At the beginning of the market, the spot price of formic acid remained stable at around 1800 yuan/ton for a long time. Domestic downstream terminals have not yet shown a significant rebound, and industries such as leather, medicine, and pesticides are mainly focused on essential procurement, with overall domestic demand showing a flat performance. However, the overall inventory of production enterprises is at a low level, and the supply contraction caused by early equipment maintenance has formed a bottom support for spot prices. Enterprises prioritize the execution of pre signed orders for shipments. Although some maintenance equipment has been restarted and put into operation, the new supply of goods has not fully impacted the market. The inventory advantage has allowed the market to maintain stability in stages, and the market has entered a dynamic game of supply and demand.
Subsequently, the market experienced a significant upward trend, with the average transaction price of 85% formic acid rising to 1900 yuan/ton, an increase of 5.5%. This round of price increases is not driven by domestic demand, and the core driving force comes from two aspects. Firstly, the low inventory pattern of factories continues, and the spot supply is not loose; Secondly, export orders have improved, and the increase in external demand has effectively absorbed some of the domestic production capacity, driving up spot prices.
After the price surged, the market quickly entered a sideways stalemate phase, with prices stabilizing at 1900 yuan/ton and no longer continuing to rise. The lack of sustained support from favorable factors has become the main constraint, with limited follow-up efforts from domestic downstream and a lack of sustained domestic demand to further boost the market. The pricing mentality of production enterprises tends to be cautious and conservative, and they have not chosen to actively continue to raise prices. Market trading has returned to rationality, and overall weak balance operation has been maintained.
In the future, there is a risk of release of supply side pressure, and the incremental resumption of production of maintenance equipment in the early stage will gradually flow into the market. If there is no substantial improvement in domestic demand, relying solely on inventory and export support will be difficult to sustain the upward trend, and formic acid still has certain downward expectations. Follow up market trends, with a focus on the recovery of domestic downstream production, the sustainability of export orders, and the pace of releasing new sources of goods.

This week, there has been an increase in supply in the northern region, while downstream users are resistant to high raw material prices, and buying is mainly wait-and-see. Market negotiations have fallen from high levels. As of August 14th, the mainstream negotiated price for tank self pickup in the East China market is 12000-12200 yuan/ton, a decrease of 200 yuan/ton from last week; The mainstream negotiated price for delivery within the Shandong market area is between 11700-11800 yuan/ton, a decrease of 250-350 yuan/ton compared to last week.
Partial supply relief:
During the week, the 260000 ton/year plant of Lihua Yilijin Refining and Chemical Co., Ltd. was restarted and resumed, with an increase in supply from the north. At the same time, downstream users were resistant to high raw material prices, and buying was mainly wait-and-see. Market negotiations fell from high levels; However, the East China region is still tight, and the supply is still limited in the short term, which restricts the downward trend of the market. The price difference between the North and South markets is gradually widening again. According to statistics, this week (August 7-13), the capacity utilization rate of the domestic acrylonitrile industry reached 69.32%, an increase of 2.76% compared to the previous cycle; The weekly output is about 80900 tons, which is+0.32 million tons compared to the previous cycle. Although the supply side has recovered, the overall situation is still limited, and there is no pressure on the inventory of various enterprises in the short term. As of August 12th, the total inventory of domestic acrylonitrile factories is about 33000 tons, which is the same as last week.
Downstream demand decline:
This week, the capacity utilization rate of major downstream industries has decreased, with ABS capacity utilization rate at 60.70%, a decrease of -0.20% compared to last week; The capacity utilization rate of the acrylic fiber industry is 53.47%, which is -2.70% compared to last week. The Hebei Aikerui acrylic fiber plant under Jilin Chemical Fiber has been shut down for 20 days for maintenance; The utilization rate of acrylamide production capacity is 50.54%, which is 3.23% higher than last week. Henan Zhengjia has shut down for maintenance; The overall downstream demand has decreased.
Rising raw material costs:
During the week, the cost of raw materials increased significantly, while at the same time, the price of acrylonitrile fell from a high level, resulting in a decrease in theoretical production profits. According to statistics, as of August 14th, the mainstream closing price of Shandong propylene market was based on 8500-8650 yuan/ton, with an average price of 8675 yuan/ton, an increase of 500 yuan/ton from last week. The average production cost of acrylonitrile was 10675 yuan/ton, a month on month increase of 4.64%. The average production profit is 1516 yuan/ton, with a month on month decrease of -501 yuan/ton.
Post production forecast:
At present, major factories in East China are maintaining low load operation, but Tianchen Qixiang and Sirbond facilities are planned to restart in the latter half of the year, and there are still expectations of gradual relief in the supply side; From the demand side, downstream industries such as acrylic fiber have seen profit compression, and some companies have adopted production restrictions or parking measures, showing obvious resistance to high raw material prices and low buying enthusiasm. Therefore, the market will continue to decline, but the overall downward trend is still relatively slow. In addition, it is still necessary to pay attention to supply side variables, as supply remains the direct factor driving price trends.

This week, the domestic epoxy propane market showed a trend of high-level decline. As of August 12th, the benchmark price of epoxy propane in Shengyi Society was 9066.67 yuan/ton, a decrease of -1.45% compared to the beginning of this month.
Raw material side: Cost support has been strengthened. This week, international oil prices fluctuated upward due to geopolitical factors, and the price of raw material propylene continued to rise. On August 11th, it closed at 8340 yuan/ton, an increase of 150 yuan/ton from the previous day. However, the epoxy propane industry is still in a loss making state, with an average weekly comprehensive profit of -357.44 yuan/ton for the chlorohydrin method. The high cost and low selling price create a double squeeze. As of August 12th, the benchmark price of propylene was 8251.00 yuan/ton, an increase of 4.08% compared to the beginning of this month (7927.67 yuan/ton).
Supply side: The device surface fluctuates frequently. On August 11th, the utilization rate of domestic epoxy propane production capacity was only 60.25%. The growth of market commodity volume is limited.
Demand side: Poor downstream transmission is the core factor causing the price drop this week. The polyether market is in a mixed phase of peak and off peak seasons. Although the favorable supply of raw material cyclopropane has driven up prices, the high prices have weakened downstream purchasing enthusiasm. Downstream reduction follow-up, resistance to high prices, and weak trading atmosphere.
Comprehensive forecast: In the short term, the strong operation of raw material propylene still provides support for the cost side, but downstream demand follow-up is weak and high price resistance still exists. The market may continue to stabilize in the short term. Focus on the dynamic maintenance of equipment and changes in downstream procurement pace.

In early August, the overall formaldehyde market fluctuated and weakened, with a shift in focus. As of August 11th, the average price of formaldehyde in Shandong Province was reported at 1228 yuan/ton, a decrease of 3.25% from the beginning of the month.
Driving factor analysis
Cost side: Methanol drag reduces cost support
In the first half of the year, methanol spot prices fluctuated downwards, and formaldehyde lagged behind methanol’s decline. On August 6th, methanol’s decline reached its maximum stage, and then methanol quickly rebounded and recovered; However, the rebound of formaldehyde was weak and continued to decline, without following the rise of methanol. The main contradiction of formaldehyde has shifted from cost drag to demand suppression. Insufficient methanol reheating is not enough to pull formaldehyde, and the core constraint is the insufficient demand for downstream boards.
Demand side: Traditional off-season, low demand for sheet adhesive
July and August are the traditional off-season for formaldehyde, with artificial boards and urea formaldehyde resin adhesives being the largest downstream. High temperature, rainy weather, and typhoon weather have restricted the operation of sheet metal factories, resulting in insufficient orders for terminal furniture and decoration. Downstream factories only maintain essential procurement and do not actively replenish inventory; The demand for fine chemicals such as Urotropin remains stable, making it difficult to drive the overall market. There is no significant increase in the real estate sector, which has limited impact on the board industry chain and is the most critical factor in suppressing formaldehyde.
Supply side: slight contraction in production, moderate accumulation of inventory
Under high temperature weather, the operational risk of formaldehyde plants increases, coupled with profit compression, and some enterprises actively reduce their load; The increment of new devices is limited. Finished product inventory is slowly rising at a medium to low level, and there has not been a high inventory explosion yet. Manufacturers have a certain willingness to raise prices, but weak demand leads to weak price support.
Market forecast: In mid to late August, there will still be weak pressure and it is difficult to have a significant rebound; As the traditional peak season approaches in September, there is a marginal expectation of recovery, and the height of the increase depends on the actual recovery of methanol and sheet metal production.
1. Cost: The methanol market is in a volatile pattern, with imports arriving at ports, domestic equipment maintenance, and geopolitical news disturbances as the main factors. There is limited room for a sharp decline, but the upward driving force is not strong. The cost of formaldehyde is showing a neutral fluctuation.
2. Supply: If losses continue, formaldehyde companies will continue to reduce their losses, alleviate inventory pressure by reducing production, and suppress downward space; If there is no centralized maintenance, the supply of goods is still relatively sufficient.
3. Demand: It is still in the off-season of summer, and the sheet metal industry is unlikely to show significant improvement. Downstream suppliers will maintain on-demand procurement.
Judgment: Formaldehyde is highly likely to oscillate at a low level, with limited rebound force, and it cannot be ruled out that local areas may continue to explore slightly; The conditions for a significant increase are not met.

1、 Price trend
Taking the sulfuric acid method gold red stone titanium dioxide with a large volume of goods in the domestic market as an example, the price of titanium dioxide in the domestic market has been lowered this week. The average price of titanium dioxide on Monday was 15460 yuan/ton, and the average price of titanium dioxide on the weekend was 14780 yuan/ton, with a price reduction of 4.4%.
2、 Market analysis
This week, the domestic titanium dioxide market prices have been lowered. In terms of upstream raw materials, both sulfuric acid and titanium concentrate market prices have been lowered, while downstream markets are in a low season with sluggish market demand and low purchasing enthusiasm, resulting in a downward shift in the focus of the titanium dioxide market. As of now, the domestic quotation for sulfuric acid based pyrite type titanium dioxide is mostly between 14300-16000 yuan/ton; The price of the Ruiti type is around 12800-13200 yuan/ton, and the actual transaction price is negotiable.
3、 Future forecast
Analysts believe that the focus of the domestic titanium dioxide market will shift downwards this week. At present, there is still no significant improvement in demand in the terminal market, and the market is sluggish. It is expected that the titanium dioxide market will be weak in the short term, and the actual transaction price will be negotiable.