Hamburg, Germany- As trading activities were limited and year-end approached, producers rushed to clear their Methyl Formate inventories. This week, the price of European Methyl Formate slipped as the supply was sufficient, and the demand performance was mainly flat. Feeble market trading and lower bidding of the product slumped the regional prices. Exports from Germany to the global market also decreased, and suppliers remained reluctant to buy the product in bulk.

The demand for Methyl Formate from downstream has waned with oversupplies and weak market fundamentals. Traders said that the requirement for Methyl Formate has been slowing down and hit market dynamics coupled with uncertainty in regional economic growth. In terms of feedstock, Methanol prices slumped with slow market offtakes for the trading. Purchasing activity remains limited as buyers purchase the stocks according to their needs and hope to see additional drops. Despite run rate cuts, overall supply levels are sufficient to fulfill the product requirement from the downstream Formic Acid and its derivative market.

In the USA, Methyl Formate prices declined due to adequate inventories and subdued demand. Supplier interest waned as they viewed a slowdown into the year-end and faced a lack of demand for new supply. With elevated energy and utility costs, Methyl Formate producers operated their operation units at significantly reduced rates to avoid further stockpiling. Exports from Germany to the United States significantly declined, and suppliers remained reluctant to increase prices.

According to ChemAnalyst, the price of Methyl Formate in the global market will decline in the forthcoming weeks. Feedstock Methanol prices will also fall, and limited trading activities will further stockpile the inventories. Downstream Formic Acid and its derivatives market are more likely to decrease production costs as healthy raw material Methanol supply and lackluster demand will affect the market fundamentals. Additionally, global Methyl Formate producers will continue to face declining profit margins and sales.