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.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a mixed trend in Formic Acid prices within the North American region from bearishness to bullishness. In April 2024, the Formic Acid prices declined as the downstream preservative market saw a subdued trend amidst sluggish purchasing activity, with buyers opting to remain on the sidelines amidst muted derivative orders. Similarly, demand from the textile market in the North American region declined.
However, the stabilization of the downstream markets, particularly adhesives and dyes intermediates, has led to a robust demand for Formic Acid during June 2024. This demand surge was further amplified by low inventory levels and heightened overseas trading activities. In the upstream market, stable Methanol contract prices, buoyed by increased transactions from regions like Mexico and South America, particularly Brazil, provided additional support to Formic Acid prices.
Focusing on the USA, which experienced the most pronounced price fluctuations, the overall trend indicated a cautious yet consistent price increase. Seasonal demand variations and strengthened manufacturing activities underpinned this upward trajectory, despite a challenging global economic climate. The quarter concluded with Formic Acid priced at USD 810/MT FOB Texas, underscoring a stable pricing environment.
APAC
The second quarter of 2024 has seen a consistent decline in Formic Acid prices across the APAC region. However, the imported quotations have slightly raised for Formic Acid during April 2024, while the overall trend remained muted due to subdued inquiries from the downstream sector. Several key factors contributed to this downward trend. Primarily, an oversupply of methanol, a crucial feedstock, weakened cost support for Formic Acid production during May 2024. Subdued demand from downstream sectors, particularly in textiles and adhesives, compounded the problem. Additionally, global economic uncertainties and logistical challenges further pressured market prices. Weak purchasing activities and cautious sentiment among buyers led to limited bidding for new stocks, exacerbating the already bearish market conditions during June 2024. Japan, in particular, experienced the most significant price fluctuations within the region. Seasonality played a role, with reduced industrial activity during the warmer months contributing to lower demand. The quarter concluded with Formic Acid priced at USD 474/MT CFR Nagoya in Japan.
Europe
In Q2 2024, the Formic Acid market in Europe experienced a marginal price increase, driven predominantly by several key factors. The quarter was marked by a persistent increase in feedstock Methanol prices, reflecting a broader trend of rising raw material costs during April 2024. Additionally, logistical challenges, particularly stemming from disruptions in the Red Sea and constrained shipping capacities, exacerbated supply issues, further lifting Formic Acid prices during June 2024. Despite sluggish demand from downstream sectors such as textiles and adhesives, producers managed to maintain a firm stance on pricing, supported by the persistent upward pressure on production costs. Germany, in particular, witnessed the most significant price changes within the region. This quarter's overall trend highlighted a gradual but steady rise in prices, influenced by seasonal factors such as increased industrial activity in warmer months, which typically drives up demand for chemical feedstocks. The correlation between higher feedstock costs and Formic Acid prices was evident, with prices climbing despite a subdued demand environment. However, compared to the previous quarter in 2024, prices saw a marginal increase of 1%, reflecting a stabilizing but upward market sentiment.
MEA
In Q2 2024, the Formic Acid market in the MEA region experienced pronounced price declines, largely driven by weak demand and oversupply conditions. However, the imported quotations have slightly raised for Formic Acid during April 2024, while the overall trend remained muted due to subdued inquiries from the downstream sector. This period has been marked by subdued purchasing activities across various downstream sectors, including textiles and adhesives, which significantly dampened market sentiment. The market was further pressured by ample inventories among major producers and low import prices from key exporting nations during May 2024. Additionally, declining upstream crude oil prices exerted downward pressure on production costs, exacerbating the bearish trend in Formic Acid prices. The overall economic environment, characterized by low purchasing power and minimal trade volumes, did not support market recovery, leading to a continuous slump in prices. Focusing on Saudi Arabia, this country saw the most substantial price changes throughout the quarter. The overall trend was negative, heavily influenced by seasonality factors that traditionally saw lower demand in the second quarter. The quarter concluded with Formic Acid prices at USD 596/MT CFR Jizan, Saudi Arabia, reflecting a negative pricing environment.
South America
The second quarter of 2024 for Formic Acid pricing in South America has been characterized by a significant decrease in prices, reflecting a challenging market environment. Various factors have influenced this decline, including ample supply, weakened demand, and stagnant trading activities. The oversupply of Formic Acid in the region has disrupted the supply-demand balance, leading to pricing pressures. Weak demand from downstream industries, such as textiles and food and beverages, has further exacerbated the situation, with buyers displaying a cautious approach and holding back on purchases. This subdued market sentiment has resulted in price stagnation and, ultimately, a downward trend. In Brazil specifically, the market has experienced the most significant price changes, reflecting the broader trends in South America. Seasonality and correlation in price changes have also played a role in the negative price movement. Compared to the same quarter last year, prices have decreased by 15%, with a further 3% decrease from the previous quarter in 2024. The quarter-ending price for Formic Acid CFR Santos in Brazil stands at USD 781/MT, underscoring the prevailing negative pricing environment in the region.
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.
