In November 2024, the Sodium Formate market in China saw significant changes. Strong demand from the downstream automotive sector and increased export activity were major drivers. According to ChemAnalyst, the stable supply of Methanol, a crucial feedstock, coupled with inflation in logistics and labour costs, reflected broader trends in the manufacturing sector.

Throughout the month, manufacturing activity for Sodium Formate was robust, supported by rising domestic and export orders. Expanding production and new work inflows fuelled this robust activity. Methanol prices remained stable, providing cost relief for manufacturers. However, rising input costs in other areas, such as logistics and labour, continued to challenge production margins. Domestic Sodium Formate manufacturing facilities operated at higher utilization rates to meet the growing demand, ensuring stable supply chains despite minor outbound shipment delays.

The automobile industry played a crucial role in driving Sodium Formate demand. According to the studies by ChemAnalyst, November saw a significant increase in new passenger car registrations, indicating the sector's recovery and its major contribution to market dynamics. The paints and coatings sector maintained constant demand for Sodium Formate, especially in the automobile OEM and marine coatings sections. However, the decorative paints segment struggled due to challenges in the real estate sector. Despite these challenges, non-decorative industrial coatings saw moderate growth, supported by government stimulus measures.

Sodium Formate 95% grade prices climbed by 8.8% compared to October 2024. This price increase was influenced by several market factors. While feedstock Methanol prices remained stable, Sodium Formate production costs rose due to inflation in logistics and labour inputs, reflecting broader trends in the manufacturing sector.

Looking forward, ChemAnalyst predicts that Sodium Formate prices are anticipated to stabilize this month (December 2024) with a slight 1.3% increase, reflecting a seasonal slowdown in demand during the year-end holiday period. Methanol prices are expected to remain stable, supporting cost efficiency for manufacturers. As manufacturing activities resume in January 2025, Sodium Formate prices are forecast to rise by 1%, driven by inventory restocking and increased domestic demand. February 2025 is projected to see minimal price movements, followed by a temporary dip in March due to subdued post-holiday demand. Recovery is expected in the second quarter of 2025, with Sodium Formate prices rising by 2.5% in April, supported by seasonal demand from the leather and textile sectors and strengthening export orders.

Feedstock Methanol prices showed minor fluctuations in November 2024, stabilizing at USD 290 per MT on CFR – Qingdao basis. This steady trend is expected to continue into early 2025, ensuring stable production costs for Sodium Formate manufacturers. The Sodium Formate market in China remains robust, driven by strong demand, particularly from the automobile sector. While seasonal factors may affect the demand in the short term, the market is poised for recovery in 2025, supported by stable feedstock prices and strong downstream consumption.