Formic Acid Prices

Formic Acid Prices June 2024

The formic acid prices in the United States for Q2 2024 reached 830 USD/MT in June. The price of formic acid in the United States fluctuated significantly, rising gradually due to stronger manufacturing and seasonal demand. The growing activity in the preservative and adhesives industries supported demand despite global economic difficulties. This increased trend was aided by low levels of inventory and consistent methanol transfers from nearby locations, such as Mexico, with pricing stabilizing toward the end of the quarter.

The price trend for formic acid in Japan for Q2 2024 settled at 460 USD/MT in June. Due to decreased industrial activity during the warmer season, the formic acid market in Japan saw notable price changes in Q2 2024. The decreasing trend was exacerbated by an oversupply of methanol and decreased demand from downstream industries, such as adhesives and textiles. Price reductions persisted throughout the quarter as a result of buyers' cautious approach to purchases.

In Saudi Arabia, the formic acid prices for Q2 2024 reached 580 USD/MT in June. Due to overstocking and weak demand, formic acid prices in Saudi Arabia experienced significant drops in Q2 2024. This fall was caused by seasonal factors as well as decreased activity in industries like textiles and adhesives. Production costs were driven down by plentiful stockpiles and falling crude oil prices, which furthered the formic acid market's downward trend in the region.

The price trend for formic acid in Brazil for Q2 2024 settled at 765 USD/MT in June. Brazil's formic acid market was under a lot of downward pressure due to a surplus of supply and low demand. In sectors like textiles, cautious buying and limited demand exacerbated the price decline. Limited trading and seasonal conditions reflected the general pessimism that pervaded the Latin American market.

Formic Acid Prices December 2023

The formic acid prices in the United States for Q4 2023 reached 842 USD/MT in December. The market continued to decline, marked by reduced demand and sluggish purchasing activities. Buyers remained cautious, limiting bulk purchases, and leading to increased inventories. This imbalance in supply and demand pressured prices downward, reflecting the broader economic challenges and subdued manufacturing output across the region.

The price trend for formic acid in China for Q4 2023, reached 498 USD/MT in December. The market showed a flat trend with limited purchasing activity. Ample inventory levels and cautious buying behavior from downstream industries kept the market stable but sluggish. Despite discounts from suppliers to encourage sales, the overall market sentiment remained reserved, maintaining a steady but slow trading environment without significant price movements.

The price trend for formic acid in Germany for Q4 2023, reached 820 USD/MT in December. The market faced sluggish demand and subdued trading activity. With sufficient supply and minimal downstream interest, prices remained low. Market players continued to navigate a challenging environment, with exports increasingly directed to the Middle East, attempting to stabilize the domestic market amidst fluctuating demand and cautious economic outlooks.

The price trend for formic acid in Saudi Arabia for Q4 2023, reached 673 USD/MT in December.  The market witnessed reduced demand, with stable to low offers reflecting a cautious trading environment. Ample stock levels and decreased manufacturing rates contributed to a subdued market. Despite some cost pressures from upstream influences, the market remained weak, with suppliers focused on managing inventories amid uncertain demand.

The price trend for formic acid in Brazil for Q4 2023, reached 822 USD/MT in December. The market in Brazil experienced a downturn, influenced by weak demand and cautious market sentiment. With ample stock levels and minimal buying interest from downstream sectors, prices remained pressured. The market conditions reflect broader economic uncertainties and high interest rates, prompting producers to adjust production rates to balance the oversupplied market.

Regional Coverage

The report provides a detailed analysis of the formic acid market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the formic acid price trend. 

Global Formic Acid Price

The report offers a holistic view of the global formic acid pricing trends in the form of formic acid price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights the current price but also provides insights into formic acid historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.  

The report also delves into formic acid price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed formic acid demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Formic Acid Price

Q2 2024:

Higher methanol costs and supply chain restrictions were the main drivers of the small increase in formic acid prices in Europe during the second quarter of 2024. Feedstock costs kept rising, while logistical problems most notably, Red Sea interruptions and shipping capacity limitations—strained supply and drove up prices in June. Due to growing manufacturing costs, producers maintained their price stance even while textile and adhesive demand remained modest. The most obvious price swings occurred in Germany, where demand is usually increased by rise in industrial activities during summers. Overall, the quarter saw a steady and slow rise, reflecting market optimism.

Q4 2023:

In Europe, the formic acid market faced a sluggish quarter with trading activities primarily conducted on an immediate basis. Muted demand and minimal purchases pressured producers to maintain stable pricing, occasionally offering discounts to stimulate interest. Despite the incentives, overall market activity remained low, with no significant offers or bids emerging from suppliers. The German market, in particular, witnessed prices reach their lowest levels of the year, with subdued demand from downstream sectors like preservatives and adhesives. The adequate supply levels across Europe have kept demand suppressed, with German exports increasingly diverted to Middle Eastern markets, adding to the subdued trading atmosphere.

This analysis can be extended to include detailed formic acid price information for a comprehensive list of countries.

North America Formic Acid Price

Q2 2024:

Prices for formic acid in North America fluctuated throughout the second quarter of 2024, going from a decline in April to a spike in demand in June. At first, the market saw price drops as buyers were wary and there were fewer derivative orders in the preservative industry. Moreover, requirements from the textile sector also declined. However, demand increased in June as a result of downstream markets like dye and adhesives intermediates stabilizing. Stable methanol prices, reinforced by transactions in nearby regions, provided a strong basis for this upward change. Low inventory levels and increased international trading further supported prices.

Q4 2023:

In North America, the formic acid market experienced a decline in prices this quarter compared to the previous one. The market's sluggishness continued as demand remained weak, with a noticeable dip in manufacturing activities. Buyers hesitated to make bulk purchases, leading to increased stock levels, and putting pressure on producers to clear their inventories by year-end. The market imbalance, caused by an oversupply of formic acid, has resulted in a continued downward pricing trend. As supplies increased, demand did not follow, causing prices to steadily drop across the region, reflecting the ongoing challenges faced by suppliers in adjusting to the sluggish market conditions.

Specific formic acid historical data within the United States and Canada can also be provided. 

Middle East and Africa Formic Acid Price

Q2 2024:

Prices for formic acid fell significantly across the Middle East and Africa in Q2 2024, mostly as a result of excess inventories and poor demand. Even though import quotations increased marginally in April, the market stayed mostly unchanged because there were few requests from downstream industries like adhesives and textiles. In May, reduced import prices from big exporters and excessive stockpiles among large producers further depressed prices. The gloomy trend continued as lower crude oil prices also resulted in lower costs of production. The region's downward pricing tendency was maintained in Saudi Arabia, which had the biggest swings due to seasonality and limited purchasing power.

Q4 2023:

The Middle Eastern formic acid market faced a challenging quarter, with Saudi Arabia's market advantage diminishing amidst stable to low offers reflecting regional trends. Concerns over adequate supply levels surfaced as manufacturing firms reduced production rates. The market witnessed moderate trading of German imports, influenced by end-user demand, despite reduced inflows from China due to holiday disruptions. Even with upstream cost pressures from geopolitical tensions, the market remained weak, with ample inventories and subdued fundamentals. Commodity markets were hesitant, balancing conflicting supply and demand concerns. As a result, manufacturers lowered production rates to manage existing stock levels amid an uncertain economic environment.

In addition to region-wise data, information on formic acid prices for countries can also be provided. 

Asia Pacific Formic Acid Price

Q2 2024:

During Q2 2024, the Asia Pacific area saw a steady decline in formic acid prices, mostly due to a surplus of methanol and a decline in downstream demand. Due to a lack of inquiries from industries including adhesives and textiles, the overall trend remained restrained even though import quotes increased marginally in April. This declining trend was made worse by logistical difficulties and global economic uncertainty, while cautious consumer behavior led to a reduction in purchase activity. Demand in Japan was impacted by price changes brought on by seasonal declines in industrial interest during the hot months.

Q4 2023:

The formic acid market in the Asia Pacific region witnessed a bearish trend this quarter. Prices weakened due to ample inventory levels and a subdued feedstock market, particularly for sulphuric acid and methanol. Downstream sectors, including pharmaceuticals, rubber, leather, and pesticides, mostly engaged in on-demand buying, resulting in flat market transactions and inventory pressure. Market participants offered discounts to move stock, but overall trade activity remained stagnant. Buyers in the region maintained a cautious approach, contributing to a lack of aggressive market moves. The stable but restrained trading environment reflected a general wait-and-see stance by businesses, balancing their purchases with ongoing market uncertainties.

This formic acid price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Formic Acid Price

Q2 2024:

Due to abundant supply and weak demand, especially in the food and beverage and textile industries, the formic acid market in Latin America had a significant decline in Q2 2024. Due to the imbalance in supply and demand caused by the regional excess, prices were further pressured. The situation was subsequently made worse by cautious buying and slack trade, which led to ongoing price drops. The most noticeable changes occurred in Brazil specifically, where they mirrored seasonal cycles and regional tendencies. The general mood stayed gloomy, and the little trade activity highlighted the difficulties the Latin America formic acid market faces.

Q4 2023:

In Latin America, particularly in Brazil, the formic acid market showed a decline in purchasing activity in the last quarter of 2023. The market remained weak due to low demand from downstream sectors and reduced spot purchasing. An influx of imports of China and USA, coupled with a cautious economic outlook and high-interest rates, has pressured prices further. Producers responded by decreasing production rates to clear out excess inventory, aiming to stabilize the market amidst these challenging conditions.

This comprehensive review can be extended to include specific countries within the region. 

Formic Acid Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Formic Acid Prices, Trend, Chart, Demand, Market Analysis, News, Historical and Forecast Data Report 2024 Edition,” offers an in-depth analysis of formic acid pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of formic acid at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of formic acid price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing formic acid price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Formic Acid Market Analysis

The global formic acid market size reached 916.9 Kilo Tons in 2023. By 2032, IMARC Group expects the market to reach US$ 1202.6 Kilo Tons, at a projected CAGR of 3.00% during 2023-2032.

• The growing product demand in the animal feed preservation is propelling the market. According to research held by the IMARC GROUP, the global feed additives market has reached US$ 518.4 Billion in 2023 and is projected to reach US$ 674.7 Billion by 2032, expanding at a CAGR of 2.9% during 2024-2032. Formic acid acts as a crucial additive in the animal feed owing to its antimicrobial properties, thereby extending the shelf life and safety of the feed. Additionally, the growing population is fueling the need to enhance livestock productivity in order to cater to the demand for animal products such as eggs, milk, and meat. On account of the aforementioned factor, farmers are seeking feed preservation techniques in order to maintain nutritional quality and safety of the animal feed, thus driving the formic acid market.
• The formic acid is widely used in the oil and gas industry, particularly in production improvement activities and well stimulation. According to a report published by the INDIA BRAND EQUITY FOUNDATION (IBEF), the oil demand in India is expected to grow twice, in order to reach 11 million barrels per day by 2045. The formic acid acts as an acidizing agent in well stimulation operations, where it is used to dissolve formation damage and improve the permeability of oil-bearing formations. Other than this, the acid is highly adopted in drilling fluid formulations where is acts as a pH adjuster and corrosion inhibitor. These are the most common factors influencing the adoption of formic acid in the oil and gas industry.
• Furthermore, the wide product application in the rubber and textile industries globally is creating a positive market outlook for formic acid. Numerous published reports highlight the steady growth of the rubber and textile industries. For instance, according to the IMARC GROUP, the global rubber market is exhibiting a growth rate of 4.5% during 2024-2032, whereas the global textile market us exhibiting a growth rate of 3.8%. Formic acid in the rubber industry is used in the manufacturing procedures of rubber goods, particularly synthetic rubber. Besides this, in the textile industry the high rates of product adoption can be accredited to its wide utilization in dyeing and finishing procedures.

Formic Acid News

The report covers the latest developments, updates, and trends impacting the global formic acid market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in formic acid production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the formic acid price trend.

Latest developments in the formic acid industry:

• In January 2022, Ingenza announced its collaboration with Johnson Matthey. The two companies have developed novel, better approaches for manufacturing industrially relevant enzymes, such as cytochrome P450.
• In May 2023, IIT Guwahati announced its development of a catalyst used to produce sustainable green hydrogen fuel. This procedure will further produce formic acid as a byproduct.

Product Description

Formic acid commonly known as methanoic acid is a colorless liquid, with the chemical formulation, HCOOH. The acid possesses a pungent smell similar to that of vinegar. It is a common carboxylic acid which occurs naturally in numerous organisms including ants.

Formic acid is mainly procured by the catalytic oxidation of methanol. This procedure includes the reaction of methanol with carbon monoxide in the presence of a catalyst, such as palladium or rhodium. Besides this, this acid is also produced through the hydrolysis of methyl formate which is collected from methanol and carbon monoxide.

Formic acid is widely used in numerous industrial applications. Some of the most common industries where formic acid is put to use include leather tanning, rubber and textile industries, oil and gas industry, and preservation of animal feed. In the leather tanning industry, formic acid acts as a coagulant in chrome tanning procedures in order to precipitate collagen fibers and convert raw hides in leather.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of formic acid pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting formic acid price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The formic acid price charts ensure our clients remain at the forefront of the industry.