In 2025, the formic acid market experienced pronounced price fluctuations, characterized by a sharp rise in mid-year followed by a notable downturn toward the year-end. Influenced by overseas supply disruptions, temporary export demand surges, and the gradual release of new domestic capacity, market prices showed mixed movements, with the overall price level declining compared to the previous year.

As of November 22, 2025, the average market price of formic acid stood at approximately RMB 2,509 per metric ton, down RMB 491 per metric ton year-on-year, representing a decline of 16.36%. While price trends in the first half of the year largely mirrored those of 2024, the second half saw increased volatility, with prices peaking before coming under pressure as new capacity entered the market.

Price Trend Analysis

The price movement of formic acid in 2025 can be broadly divided into five distinct phases.

During the first phase around the Lunar New Year, downstream operating rates remained low due to holiday effects. Market transactions were limited, inventories increased, and producers mainly focused on stable pricing strategies.

In the second phase, starting from mid-February, overseas supply disruptions caused by BASF plant shutdowns created a temporary global supply gap. Chinese exporters benefited from a surge in overseas orders, while domestic demand from chemical synthesis and rubber industries entered a seasonal peak. As inventories declined, major producers raised prices multiple times, resulting in a cumulative increase of around RMB 500 per metric ton and pushing prices to a first-half high by mid-March.

The third phase began in mid-April, when reciprocal tariff policies between China and the United States restricted exports of downstream products such as feed additives, leather chemicals, and formates. Combined with inventory build-up expectations ahead of the May holiday, market demand weakened earlier than usual, leading to a continuous price decline. Despite a brief rebound at the end of May driven by restocking activities and reduced domestic supply, prices fell further in June amid seasonal demand weakness, reaching the annual low.

In the fourth phase, temporary supply reductions caused by plant maintenance, together with a concentrated surge in overseas orders from late July to mid-August, significantly tightened the supply-demand balance. Prices were rapidly pushed to an annual peak of RMB 3,550 per metric ton.

The fifth phase started in late August, when weakening export demand, slow downstream restarts, and limited acceptance of high prices led to a sustained correction. Although producers attempted to stabilize the market through price support measures, high inventories and expectations of new capacity additions intensified downward pressure. Toward year-end, prices retreated sharply to around RMB 2,500 per metric ton.

Supply and Demand Overview

On the supply side, China’s formic acid output totaled approximately 528,000 metric tons from January to November 2025. Overall production remained relatively stable, with new capacity gradually coming online. Major producers operated at high utilization rates for most of the year, with only limited maintenance periods.

On the demand side, the market showed clear phase-based divergence. Export demand surged early in the year due to overseas supply disruptions but weakened later as global supply normalized. Domestic demand remained generally subdued in the second half, with downstream buyers mainly purchasing on a hand-to-mouth basis and maintaining cautious sentiment.

Outlook for 2026

Looking ahead to 2026, the formic acid market is expected to experience a “weak first half, stronger second half” pattern. Rising methanol costs may provide cost support, while supply remains ample in the short term. Seasonal maintenance in the third quarter could temporarily tighten supply, and traditional peak seasons may gradually improve demand conditions.

Overall, formic acid prices in 2026 are projected to fluctuate within the range of RMB 2,500–3,000 per metric ton. Market performance will continue to depend on raw material cost transmission, the pace of new capacity additions, and the recovery of downstream demand.