Zhi Tong Cai Jing·2025-08-07 03:37Group 1 - The core viewpoint of the report indicates that the formic acid market is experiencing a tightening supply-demand balance, driven by a temporary contraction in supply and strong export demand, leading to a significant increase in prices [1][2] - As of August 6, the price of formic acid reached 3550 RMB/ton, marking a daily increase of 300 RMB/ton (+9.23%), a weekly increase of 35.50%, and a monthly increase of 54.35% [1] - The report suggests monitoring companies such as Luxi Chemical (000830.SZ) and Hualu Hengsheng (600426.SH) due to the favorable market conditions [1] Group 2 - The supply side is experiencing a temporary reduction due to operational issues at major producers, with domestic formic acid production capacity primarily dominated by Chinese companies, accounting for approximately 53% of the global capacity [1][2] - Domestic formic acid production was reported at 10,520 tons with an operating rate of 72.9%, reflecting a week-on-week decrease of 9.0% in production and 8.9 percentage points in operating rate [1] - The internal demand for formic acid is weak due to a slow economic recovery, with a projected 5.0% year-on-year decline in total consumption for the first half of 2025 [2] Group 3 - The rapid depletion of factory inventories, driven by strong external demand, has resulted in a significant reduction in formic acid stock levels, which are now at 2,900 tons, a decrease of 43.1% week-on-week [3] - The current inventory levels are at a near three-year low, which may provide strong support for continued price increases in the formic acid market [3]