In the final week of March, the Methyl Formate market showed divergent sentiments across Asia and Europe. The Asian market was flat amid financial year-end closing, whereas European markets continued to decrease due to lower production costs and weak downstream industry demand.

Key Takeaways:

• Prices in the Asian market remained stable last week due to the financial year-end closing
• Prices declined in the European market due to lower methanol cost and subdued demand
• Expected demand recovery from the pharmaceuticals and agrochemicals sectors in April

Methyl Formate prices were stable across key Asian markets, such as South Korea, India, Indonesia, China, and Malaysia. This was mainly due to stable production costs since feedstock methanol prices did not change throughout the period. The end of the financial year also helped to keep the market stable, with procurement being cautious on the part of buyers.

As of March 28, downstream buying activity was at a moderate level as buyers purchase for essential requirements and avoid buying on a large scale. Agrochemical demand continued to be firm, providing stability to the Methyl Formate market; however, demand from manufacturers of bulk drugs has softened, with manufacturing activity slowing down.

While prices remained firm, the market outlook is guarded with economic and geopolitical risks. Manufacturers and traders remain vigilant to watch global developments for their continued influence on demand and for the pricing of Methyl Formate in the next few weeks.

In Europe, prices for Methyl Formate have fallen in some regions, specifically Germany, Belgium, and the Netherlands. Prices have fallen due to the reduction in feedstock methanol prices during the week, enabling manufacturers to produce Methyl Formate at a lower cost.

With increased production levels, there was a healthy supply of Methyl Formate in the market, continuing the price fall. Even though demand from the agrochemical industries had remained relatively constant over the reporting period, there were few new bids or new inquiries, suggesting that there was a level of caution with buyer sentiment.

Downstream producers also lowered their purchasing volumes for Methyl Formate, as buying levels decreased toward the end of the quarter, leading to even slower activity in the market. With ample supply and lower demand, the market felt downward pressure, and the bearish trend in pricing developed.

Overall, the demand from the pharmaceuticals sector remained stable during March, but in April, it is expected to make a recovery. In the agrochemical sector, the global demand for pesticides and fertilizers may surge in April ahead of the planting season beginning in many regions.

According to ChemAnalyst, the Methyl Formate price is expected to show an upward movement in the upcoming weeks, driven by a recovery in the demand sector.