Emergency Notice: The prices of formic acid, acetic acid, and calcium formate have all risen across the board, and the shipping costs have significantly increased.
Emergency Notice: The prices of formic acid, acetic acid, and calcium formate have all risen across the board, and the shipping costs have significantly increased. If you have actual purchase requirements, please place orders as soon as possible!
Dear valued new and old customers:
Recently, the global chemical market and logistics industry have experienced significant fluctuations. Due to the combined impact of multiple unforeseen factors, the prices of our core chemical products such as formic acid, acetic acid, and calcium formate have seen a comprehensive and substantial increase. At the same time, international and domestic shipping costs have soared simultaneously, putting continuous pressure on supply chain costs, and the tight market supply situation has further intensified. To ensure the normal production and operation of all customers and avoid losses caused by continuously rising prices or shortage of supply, we hereby issue an urgent notice. We sincerely request that customers with actual purchasing needs place orders as soon as possible, lock in supply and prices.
1. Reasons for price increase of core products: Cost + supply-demand double pressure, price increase is inevitable
1. Formic acid: Global supply is tightening, raw material and energy costs are soaring
Formic acid, as a basic chemical raw material, has seen a rapid upward trend in prices recently. The core reason is the imbalance in the global supply chain. On one hand, international oil prices and natural gas prices have risen sharply, directly pushing up the costs of core raw materials such as methanol and sulfuric acid required for formic acid production. Major international chemical companies have announced price hikes, and the price increase of formic acid per ton in the European market has approached 2000 RMB, leading to a simultaneous increase in the domestic market; on the other hand, many formic acid production enterprises in China have entered equipment maintenance periods, with reduced production capacity release, and the supply of market spot goods has continuously shrunk. The supply-demand gap has gradually expanded, and manufacturers' quotations have continued to rise, with further price increase expectations in the future.
2. Acetic acid: Rising raw materials + low inventory, maintenance expectations boost price increase
The acetic acid market continues to show a strong upward trend, with prices rising continuously. The core support comes from both the cost end and the supply end: The price of raw material methanol has continued to rise, providing strong cost support for acetic acid prices; currently, the overall inventory of acetic acid production enterprises in China is at a low level, with tight market circulation, and the expectation of reduced market supply due to the planned maintenance of many mainstream manufacturers in April, the bullish sentiment in the industry is strong, quotations have continued to rise, and the possibility of short-term price decline is extremely low.
3. Calcium formate: Downstream demand recovery + cost transmission, prices rise simultaneously
Calcium formate, as a commonly used feed additive and cement admixture, the demand from the livestock breeding and construction and building materials industries has gradually recovered, and the market purchase volume has steadily increased. At the same time, as the core production raw material of calcium formate, the price increase of formic acid directly transmits to the terminal products, and the simultaneous increase in packaging, labor, and other auxiliary costs has led to a rigid price increase for calcium formate, with the supply of spot goods gradually tightening, and large-scale purchases need to be scheduled in advance.
2. Significant increase in shipping costs: Logistics costs soar, further intensifying procurement pressure
In addition to the price increase of the products themselves, the recent shipping market has also experienced a significant price adjustment, becoming another important factor driving up the overall procurement costs. Affected by factors such as tight shipping capacity in international waterways, soaring fuel prices, and disrupted shipping on some routes, global shipping costs have soared, with domestic export and import shipping costs experiencing significant increases. Some routes have seen a price increase of over 30%, and there is a shortage of shipping space and difficulty in booking, with the logistics cycle also being prolonged. For customers engaged in foreign trade procurement and cross-border transportation, the additional increase in logistics costs further compresses profit margins. Placing orders as soon as possible can not only lock in product prices but also secure shipping space in advance, avoiding logistics delays and price hikes risks.
3. Important reminder: Please place orders as soon as possible if there is actual demand, to avoid multiple risks
The current market situation is severe, with both price increase and shortage risks coexisting. Do not wait and watch!
Risk of continuous price increase: At present, the costs of raw materials, energy and logistics show no sign of reduction. The prices of chemical products still have room for further increase in the future. Delaying the purchase means that the procurement costs will continue to rise, directly increasing the burden on production and operation.
Risk of shortage of available supply: Due to production line maintenance and insufficient production capacity by manufacturers, the available stock of the three core products is limited. Orders for large quantities have already started to be queued up. As the production peak season approaches, the shortage of supply will become more prominent, and there may even be cases of supply disruption and product shortages.
Logistics delay surcharge risk: The increase in shipping fees and the shortage of shipping space have become the norm. In the future, not only will shipping costs continue to rise, but the problems of difficult booking and long logistics cycles will become even more severe, which will greatly affect the production and delivery progress of customers.
Here, we sincerely recommend that all customers with actual production needs, as soon as possible, combine their own procurement plans with our company's business personnel to negotiate and finalize the orders, pay the deposit, lock in the price and the supply sources, in order to minimize the cost risks and supply risks brought by market fluctuations to the greatest extent. Our company will fully guarantee the supply of goods to our existing customers, prioritize handling the production, stock preparation and delivery of the orders that have been placed, and work together with all customers to weather the market fluctuation period and ensure the stability of the supply chain.
If there are further changes in market prices and freight rates in the future, we will notify you in a timely manner. Thank you for your long-term trust and support. If you have any procurement questions, please feel free to contact your dedicated business manager for consultation at any time!
