According to the commodity market analysis system of Business Society, at the end of 2025, the price of formic acid declined. As of January 5, 2026, the benchmark price for 85% industrial-grade formic acid in China was 2,300 yuan per ton, representing a decrease of 8.6% compared to 2,500 yuan per ton on December 24, 2025. The recent price trend of the domestic formic acid market can be clearly divided into two core phases, characterized overall by a pattern of "rapid decline followed by stabilization and sideways movement." The first phase was the price decline phase (December 24–25). On December 24, the domestic formic acid market remained temporarily stable, with mainstream transaction prices holding at 2,500 yuan per ton. However, underlying downward risks were already present in the market. With the resumption of full-load operations at the main production facility in Liaocheng after maintenance, the expected release of new production capacity in Jingzhou, Hubei, and high social inventories, supply-demand imbalances intensified. The following day (December 25), market prices experienced a significant decline, with mainstream transaction prices dropping to 2,300 yuan per ton—a single-day decrease of 200 yuan per ton, or nearly 8%, confirming the downward trend in the market. The second phase was the sideways consolidation phase (December 26–January 5). Starting from December 26, the domestic formic acid market entered a sideways consolidation phase, with mainstream transaction prices stabilizing at 2,300 yuan per ton. During this period, despite increasing supply-side pressures (such as the full-load operation of new facilities at a major Hubei plant, which added 600 tons to daily supply), prices did not experience significant fluctuations, and the market entered a temporary state of supply-demand deadlock. By January 5, although the price system had not directly broken below this level, the practice of some manufacturers offering low-priced, targeted supplies to end-users during the holiday period indicated signs of price loosening. **Analysis of Core Influencing Factors** **(1) Supply Side: Capacity Release Coupled with High Inventories Establishes a Loose Market Structure** The supply side of the formic acid market has been in a state of continuous expansion recently, becoming the core factor suppressing prices. On one hand, new production capacities have been released in a concentrated manner. The main production facility in Liaocheng resumed full-load operations after maintenance, and new production capacity in Jingzhou, Hubei, was successfully launched and gradually ramped up to full capacity. The major Hubei plant alone increased domestic daily supply by 600 tons, significantly boosting overall market supply. On the other hand, inventory pressure remained high, with previously accumulated inventories maintained at a medium-to-high level and not fully digested. The release of new production capacity further exacerbated inventory accumulation, increasing pressure on enterprises to destock. Against this backdrop, manufacturers proactively lowered quotations to alleviate inventory pressure. Although quotations stabilized subsequently, low-priced targeted supply and other loosening behaviors reflected the passive situation on the supply side. **(2) Demand Side: Widespread Wait-and-See Sentiment and Weak Purchasing Willingness Constrain Price Recovery** Weak performance on the demand side further intensified supply-demand imbalances. Starting from December 24, downstream purchasers generally adopted a wait-and-see attitude, leading to persistently weak trading activity. After the price decline on December 25, market sentiment did not ease but instead became more cautious. Most buyers preferred to wait for prices to stabilize before making purchases, resulting in weak market purchasing willingness. As of January 4, demand remained primarily driven by rigid needs, with no substantial signs of recovery. Additionally, end-users generally held cautious and bearish expectations for future prices, further suppressing proactive purchasing behavior and making it difficult to generate effective demand momentum to support price recovery. The formic acid data analyst at Business Society believes that, based on the current supply-demand structure and changes in the price system, the domestic formic acid market is expected to remain "stable with a weakening bias" in the short term, with the possibility of further price declines. Specific developments will depend on changes in market supply and demand.