Recently, the domestic formic acid market has shown a ladder like upward trend of “stabilizing first, then rising, and stabilizing at a high level”. The overall market activity continues to increase, and the price center steadily moves upward. As of September 14th, the benchmark price of industrial grade formic acid was 2400 yuan/ton, an increase of 14.29% from 2100 yuan/ton at the beginning of the month. In the past week, the market has gradually shifted from an initial supply-demand balance sideways state to an upward trend with demand recovery and cost support, and finally stabilized at a temporary high. The overall stable to strong operating trend of the industry is clear, and the market has a strong bullish atmosphere.
The price has started two rounds of steady upward trend, and the market vitality has been fully activated. Driven by the favorable consumption of the upcoming Mid Autumn Festival and National Day holidays, downstream terminal stocking expectations continue to rise, becoming the core trigger for this round of price increases. Even before the market started, mainstream production enterprises had already laid out ahead and concentrated on raising their factory quotations, directly pushing the market price center upward in the first round. The average transaction price increased by 4.55% to 2300 yuan/ton. After the price increase, the market did not show a pullback trend. Even though the industry inventory showed a slight upward trend, it did not suppress the market. The continuous release of downstream stocking demand effectively offset the increase in inventory, and the market’s price logic continued to strengthen.
Subsequently, the market situation rose again, with prices breaking through the previous platform, and the average transaction price rose to 2400 yuan/ton, with a daily increase of 4.35%, completing the second effective rise of the week. This round of price hikes is not solely driven by demand, but rather the result of a mutually beneficial resonance between the cost and demand sides. The rigid support on the cost side has established a bottom range for the formic acid market price, effectively limiting the downward space of the market; With the arrival of the peak season for stocking up during the Double Festival on the demand side, downstream procurement demand continues to improve marginally, and the market transaction atmosphere continues to improve. At the same time, production enterprises have a clear willingness to raise prices, and the market’s reluctance to sell has intensified, further driving prices steadily higher.
Later this week, the formic acid market tended to stabilize, with prices remaining stable in the high range of 2400 yuan/ton and continuing to operate without significant fluctuations in the market. The market entered a high digestion stage. At this time, the cost side support is still stable and has become the core cornerstone for maintaining market stability. Coupled with the positive market atmosphere driven by previous price increases, the bullish sentiment in the market has not subsided. Although market prices have temporarily stabilized, there is still room for downstream stocking demand to be released, and the industry supply and demand pattern continues to improve. There is still potential for further upward momentum in the market.
Overall, the nodal demand dividend of dual season stocking, rigid support on the cost side, and manufacturer price manipulation are the three core factors driving the strength of this round of market trend, while the continuous improvement of the phased supply and demand pattern provides solid fundamental guarantees for price increases. Looking ahead to the short-term market, the favorable factors in the formic acid industry have not yet subsided, and downstream stocking demand is expected to continue to be released. The cost support is stable, and the overall market will continue to operate in a stable to strong pattern, with the possibility of further price increases. In the future, it is necessary to focus on the progress of downstream centralized stocking, fluctuations in raw material costs, and changes in industry inventory.

LLDPE (7042) had an average price of 9123 yuan/ton on September 7th and 9466 yuan/ton on September 11th, an increase of 3.76%. LDPE (2426H) had an average price of 11900 yuan/ton on September 7th and 12200 yuan/ton on September 11th, an increase of 2.52%. The average price of HDPE (5000S) on September 7th was 10925 yuan/ton, and on September 11th it was 11100 yuan/ton, an increase of 1.60%.
In August, multiple sets of PE equipment in China underwent centralized maintenance, resulting in a contraction of supply and a decrease in petrochemical inventory, while spot support increased. The maintenance equipment will resume production in September, and domestic supply will gradually rebound. The short-term supply pressure is still limited, and the subsequent increase in supply will gradually become apparent.
September has entered the traditional peak season for agricultural film, and demand has rebounded compared to the previous month. But the profits of downstream products are squeezed by the rise in raw material prices, and many enterprises are reluctant to stock up in large quantities due to their urgent needs. Demand can only support the bottom, and it is difficult to sustain a significant increase in prices.
International crude oil is boosted by geopolitical factors, and the cost of oil to PE production has risen, which is the core support of this round of market trend. The fluctuation of coal raw material for coal to PE is not significant, and the cost is relatively stable. If crude oil subsequently falls, the cost support for oil production will weaken, and the market will be under pressure accordingly.
The current PE market is driven by both rising costs and previous supply contraction. Short term reliance on low inventory and peak season for agricultural film to maintain high volatility. With the resumption of production and the gradual realization of peak season expectations, there is a risk of a downturn in the market in the middle and later stages.

At the beginning of September, the domestic formic acid market showed a phased trend of “stabilizing first and then rising, maintaining stability at a high level”, with a clear rhythm of market fluctuations and overall stable and orderly operation. At the beginning of the month, the market price continued its sideways trend at the end of the month, with a benchmark price of 2100 yuan/ton for 85% industrial grade formic acid. Driven by favorable costs, it completed a round of deterministic price increases, rising to 2200 yuan/ton. Subsequently, relying on the supply-demand balance pattern, it operated steadily without significant fluctuations, and the market trading atmosphere tended to be rational, with sufficient support from industry fundamentals.
There are favorable factors on the cost side, which stimulate price increases
The cost side is the core positive factor driving the upward trend of formic acid prices in early September. In the first half of this month, the prices of core raw materials such as coal continued to rise, and the center of gravity of raw material costs shifted upward, directly raising the comprehensive production costs of formic acid production enterprises. The continuous rise in costs has broken the stable pattern of the previous market, giving production enterprises sufficient confidence to adjust prices, actively raising market quotations, and promoting the smooth rise of formic acid spot prices. Against the backdrop of stable raw material prices, cost benefits continue to persist, providing solid bottom support for the price increase of formic acid and effectively eliminating the risk of price decline.
Dynamic balance of supply and demand
The fundamentals of supply and demand have dominated the market’s stability after price increases. From the supply side perspective, the overall inventory of the formic acid industry is currently in a moderate and reasonable range, with no inventory backlog, destocking pressure, and no shortage of supply or urgent inventory situation. The supply and demand inventory structure of the industry is healthy. The shipping rhythm of production enterprises has always remained stable, and the supply of goods is stable and orderly, which can match the normal demand of the market and lay the foundation for maintaining market stability. On the demand side, downstream terminal rigid demand procurement has been steadily released, without centralized replenishment or rush for goods, nor has there been a sharp decline in demand. The support of rigid demand is stable, allowing the market supply and demand to form a stage dynamic balance, effectively constraining significant price fluctuations.
Overall, the market trend of formic acid in early September is in line with the characteristics of the traditional peak season in the chemical industry, with a clear logic of cost driven price increases and stable supply and demand. The current market’s favorable factors and stable factors balance each other, with cost side favorable factors continuing to support the bottom, supply and demand sides maintaining balanced operation, and the industry showing strong price support sentiment. In the short term, 85% of the domestic industrial grade formic acid market is likely to continue its current high-level stable operation pattern, and the possibility of significant fluctuations is extremely low. The subsequent market trend will mainly rely on fluctuations in raw material prices, the recovery of downstream terminal demand, and changes in industry inventory. If costs continue to strengthen or downstream demand is concentrated, there is still room for further upward movement in formic acid market prices, and specific changes in market supply and demand still need to be monitored.

At the beginning of the week, the price of activated carbon was 12266 yuan/ton, and over the weekend, it was 12366/ton, a decrease of 0.82% in price.
The prices of domestic coconut shell activated carbon manufacturers have stabilized and become stronger this week. The ex factory price of activated carbon for coconut shell water purification in East China is between 9500-13000 yuan/ton. The price trend of upstream coconut shell carbonization materials (raw materials) is firm, coupled with the recent extension of shipping cycles, increased storage and environmental protection requirements, which have pushed up import and logistics costs and formed a bottom support for the price of finished carbon.
Supply side impact: The main producing countries in Southeast Asia (Indonesia, Philippines) are affected by drought and tightening export quotas, resulting in tight raw material supply and the release of production capacity in some regions of the country. The overall market supply-demand game makes it difficult for prices to rise unilaterally, with fluctuations being the main factor.
Prediction: The domestic supply of coconut shell activated carbon raw materials is tight, and it is expected that the price of activated carbon will mainly fluctuate and strengthen in the short term.

1、 Review of August Market Trends
In August, the domestic PA6 spot market as a whole emerged from a volatile upward trend, with an accelerated rise at the end of the month. In the first half of the year, the price remained stable at 12966.67 yuan/ton, and then the market steadily rose. In the second half of the year, the price remained stable at 13166.67 yuan/ton for a long time; On September 1st, the spot price rose sharply to 13466.67 yuan/ton, with a daily increase of 2.28%. In the short term, the price of all 10-90 day cycles remained in the high range, and the one-year cycle position reached the medium high level. This round of upward trend has accumulated a considerable upward momentum.
1. Cost analysis
The upstream raw material caprolactam market has fluctuated and strengthened, with the cost center of raw materials constantly shifting upwards, providing sustained cost support for PA6. With the rise in raw material prices, the production costs of enterprises have increased, and the willingness of factories to raise prices has strengthened. Cost driven factors are an important driving force for the price increase of PA6 in August, forming a top-down upward momentum for spot prices.
2. Supply and demand analysis
On the supply side, some domestic production enterprises are undergoing periodic maintenance, and the overall operating load of the industry has fallen, resulting in limited increase in market spot supply; As prices continue to rise, manufacturers tend to be cautious in their shipping mentality, creating a strong atmosphere of reluctance to sell and pushing prices higher. The supply of spot goods has tightened, providing support for the upward trend of the market. On the demand side, the downstream spinning and modified plastic industries are gradually starting to stock up, and the expected peak season of “Golden September” is driving the enthusiasm of downstream procurement to rebound, with a month on month improvement in demand. However, the actual consumption of the terminal has not been fully released, and the downstream pursuit of price increases is becoming cautious. The resistance to high price transactions is gradually emerging, and further upward movement is subject to certain constraints. Overall, there is a pattern of supply contraction and demand recovery driven by peak season expectations.
2、 Short term future forecast
The short-term PA6 market is expected to fluctuate at a high level and slow down its upward trend, raising concerns about the risk of a pullback. At present, prices in the short, medium, and long term cycles are all at high levels, and the periodic upward trend in prices has already overdrawn some peak season expectations, further weakening the momentum of unilateral sharp upward momentum; Upstream cost support still exists, and there is some room for support below. The market is likely to enter a period of high volatility, and it is necessary to focus on tracking the actual demand fulfillment during the downstream September peak season. If terminal demand falls short of expectations, there is pressure for the market to fall back and adjust.