For the Quarter Ending September 2024
North America
In Q3 2024, the Methenamine market in North America experienced several key trends. Prices declined due to reduced demand from the fertilizer industry and logistical challenges, such as bottlenecks in export shipments via the Panama Canal. The ongoing drought conditions also impacted the market, leading to an accumulation of inventories.
The demand for Methenamine remained subdued, primarily due to cautious purchasing behaviour from consumers and weak performance in the fertilizer sector. The pharmaceutical sector also showed moderate demand. The supply chain faced challenges, including delays in shipments and limited vessel transits through the Panama Canal.
Despite these challenges, the supply remained relatively steady. The market is expected to face continued pressure from logistical challenges and subdued demand. However, there may be opportunities for recovery if demand from the pharmaceutical and fertilizer sectors improves.
APAC
In Q3 2024, the Methenamine market in the APAC region experienced a significant uptrend in prices, driven by multiple factors. The sustained increase was primarily influenced by robust demand from various sectors like pharmaceuticals, agriculture, and textiles. Additionally, regulatory reforms aimed at streamlining drug manufacturing processes further bolstered market sentiment, fostering partnerships between local and foreign companies. These initiatives enhanced production efficiencies and supported the overall price surge. China, being a key player in the Methenamine market, witnessed the most substantial price changes during this period. The market exhibited strong seasonality, with prices showing a notable positive correlation with increased domestic demand and stable feedstock costs. Notably, the price increase of 3% from the previous quarter highlighted the market's resilience and adaptability to changing dynamics. Despite a -7% decrease compared to the same quarter last year, the gradual recovery and price stabilization were evident. The price comparison between the first and second half of the quarter further emphasized the steady upward trend. The quarter-ending price of USD 910/MT of Hexamethylenetetramine CIF Lianyungang in China underscored the overall positive pricing environment and the market's ability to navigate challenges effectively.
Europe
In Q3 2024, Methenamine pricing in Europe exhibited a predominantly upward trend, driven by several critical factors. The escalating costs of raw materials, notably ammonia, have substantially influenced the production expenses, leading to a ripple effect on Methenamine prices. Additionally, heightened demand from the pharmaceutical and automotive sectors contributed to price increments. This demand surge is attributed to increased domestic production and strategic shifts towards self-sufficiency, particularly in response to international trade dynamics and supply chain disruptions. Russia, in particular, has experienced the most pronounced price changes, with Methenamine prices reflecting significant volatility. The overall trend in Russia was positive, underscored by a 5% increase from the previous quarter, illustrating a robust market environment. This upward trajectory was further accentuated by seasonal factors, as the second half of the quarter saw a 6% increase in prices compared to the first half. Despite a -1% change from the same quarter last year, the overall pricing sentiment remained positive, supported by strategic supply management and increased trading activities. The quarter concluded with Methenamine prices reaching USD 790/MT FOB Novosibirsk, indicating a strong market position despite historical fluctuations. The consistent price increase during this quarter underscores a resilient and adaptive market, driven by strategic economic maneuvers and sector-specific demands.
MEA
In Q3 2024, Methenamine pricing in the MEA region experienced an upward trajectory, driven by several key factors. The notable increase in demand for pharmaceutical chemicals, including Methenamine, played a crucial role in pushing market prices higher. This heightened demand was fueled by initiatives aimed at boosting domestic manufacturing and reducing reliance on imports, creating a more favourable pricing environment. Within Saudi Arabia, Methenamine prices saw significant fluctuations, with a 1% increase from the previous quarter. This surge in prices marked a stark contrast to the -7% decline observed from the same quarter last year, indicating a notable shift in market dynamics. The price comparison between the first and second half of the quarter revealed a 3% increase, underlining the consistent upward trend observed in pricing. The quarter-ending price of USD 835/MT for Hexamethylenetetramine FOB Al Jubail in Saudi Arabia reflected the peak of this positive price trend in the region.
For the Quarter Ending June 2024
North America
In the USA, the market for Methenamine is facing challenges despite mixed sectoral dynamics. The rubber industry is experiencing a downturn, negatively impacting the overall demand for Methenamine. However, the pharmaceutical sector remains positive, providing some support to Methenamine demand due to its application as a urinary tract antiseptic.
Feedstock price movements have added complexity to the market. Formaldehyde prices have surged by 29.6% in Q2, increasing the production costs for Methenamine, while ammonia prices have decreased by 8.8%, slightly offsetting the overall cost pressure. The combination of high formaldehyde costs and decreased ammonia prices has created a volatile pricing environment. This challenging market landscape for Methenamine is further complicated by the decreased demand in the rubber sector and sustained demand from the pharmaceutical industry.
The current scenario reflects the intricate balance between feedstock cost fluctuations and sector-specific demand trends, making the Methenamine market in the USA difficult to navigate. As a result, market participants are closely monitoring these variables to manage inventory and pricing strategies effectively.
APAC
In Q2 2024, the pricing environment for Methenamine in the APAC region remained stable, driven by a confluence of market factors primarily affecting supply and demand dynamics. Despite seasonal fluctuations and varying market sentiments, the overall stability can be attributed to balanced supply chains and moderated demand from key sectors. The Methenamine market experienced a 12.9% decline compared to the same quarter last year, reflecting a long-term trend of decreasing prices. However, this quarter saw a 4.3% reduction from the previous quarter in 2024, indicating a stabilization phase following previous volatility. Focusing on China, Methenamine prices exhibited notable fluctuations, albeit within a stable context. Seasonal demand shifts, particularly in the pharmaceutical and food additives sectors, played a significant role in price adjustments. The quarter ended with Methenamine prices in China at USD 869/MT CIF Lianyungang, reflecting a consistent pricing environment characterized by cautious market optimism. Overall, the stable sentiment in Methenamine pricing for Q2 2024 is shaped by a combination of strong inventory levels, balanced supply-demand dynamics, and moderated market activities. Despite minor fluctuations, the market has managed to maintain equilibrium, suggesting a stable pricing environment with neither significant upward nor downward pressure on Methenamine prices. The latest pricing confirms this stability, presenting a positive outlook for market participants.
Europe
In the European market, the Methenamine landscape is currently facing challenges, with contrasting trends in its primary sectors. The rubber industry is showing positive growth, which helps to support the demand for Methenamine as a vulcanization accelerator. However, the pharmaceutical sector is experiencing a downturn, which negatively impacts Methenamine demand as it is used in urinary antiseptics. Additionally, feedstock prices have shown significant changes in Q2; formaldehyde prices have decreased by 4.8%, and ammonia prices have dropped by 9.7%. These declines in feedstock prices should theoretically reduce production costs for Methenamine, but the overall market remains complex. The reduction in costs is being offset by the lower demand from the pharmaceutical sector. The combination of these factors has created a challenging pricing environment for Methenamine in Europe. This complexity requires market participants to carefully manage their inventory and pricing strategies to navigate the fluctuating demand and cost dynamics effectively. The current market dynamics highlight the intricate balance between sectoral demand and feedstock price movements that define the Methenamine market in Europe.
MEA
The second quarter of 2024 has been challenging for the Methenamine market in the MEA region, with a consistent downward pricing trend. Several factors have contributed to this decline, primarily driven by reduced demand from key downstream industries, such as pharmaceuticals, polymers, rubber, and textiles. The economic slowdown in major importing countries has exacerbated the situation, leading to diminished export orders and a subsequent accumulation of inventories. Additionally, the stability or slight decline in the prices of key feedstocks, such as formaldehyde and ammonia, has removed any upward pressure on Methenamine prices, further contributing to the bearish market sentiment. In Saudi Arabia, the Methenamine market has experienced the most significant price changes within the region. The overall trend for this quarter has been characterized by decreasing prices, influenced by lower consumer demand and high inventory levels. Seasonality also played a role, with summer typically seeing heightened demand, which did not materialize as expected this year. Compared to the same quarter last year, Methenamine prices have fallen by 10.6%, illustrating a marked decline. From the previous quarter in 2024, the prices have decreased by 4.2%, reflecting a persistent downward trajectory. Within this quarter alone, the price comparison between the first and second half shows a 3% drop, indicating no signs of recovery. The latest quarter-ending price for Methenamine in Saudi Arabia stands at USD 786/MT FOB Al Jubail.
For the Quarter Ending March 2024
North America
The North American Methenamine market experienced a challenging first quarter of 2024, with prices consistently decreasing. Several factors contributed to this downward trend. Diminished demand from both domestic and international markets played a significant role, as the fertilizer industry experienced weak performance due to faded seasonal demand and cautious purchasing behaviour from consumers. The ongoing drought conditions and bottlenecks in export shipments via the Panama Canal further impacted the market, leading to an accumulation of inventories within the country. Additionally, procurement orders from international markets, particularly India, remained low as Indian consumers focused on the Middle Eastern market.
Within the USA, the Methenamine market remained stagnant, with prices stabilizing due to subdued demand from the domestic fertilizer sector. The improved water levels in the Panama Canal provided some relief, but delays in shipments and limited vessel transits continued to affect supply. Despite a slight uptick in demand from the Asian market, overall demand remained low.
In summary, the pricing environment for Methenamine in the North American region during Q1 2024 was negative, characterized by decreasing prices influenced by factors such as diminished demand, oversupply, and logistical challenges.
APAC
During the first quarter of 2024, Methenamine prices in the APAC region initially showed an upward trajectory, driven by several significant factors. The beginning of Q1 saw a shortage of Methenamine supply in the market, prompting suppliers to carefully manage their inventories and increase restocking efforts. Concurrently, heightened demand from the pharmaceutical sector exerted additional upward pressure on prices. However, as the quarter progressed, the Methenamine market in China experienced notable price fluctuations on the downward side. Towards the latter part of Q1 2024, prices in China began a consistent downward trend, reflecting a cautious market sentiment influenced by economic uncertainties. Compared to the same quarter the previous year, Methenamine prices in China dropped by 10%, culminating in a recorded price of USD 873/MT CIF Lianyungang by the end of the quarter. This decline underscored the prevailing negative sentiment and pricing environment across the region. In summary, the first quarter of 2024 witnessed a significant decline in Methenamine prices across the APAC region, particularly noticeable in China. This downturn was primarily driven by an oversupply of Methenamine and reduced demand from key sectors like pharmaceuticals. Throughout the quarter, market sentiment remained subdued, as evidenced by the fluctuating prices and cautious approach adopted by buyers and sellers alike. Economic uncertainties further exacerbated this trend, leading to a challenging environment for Methenamine pricing.
MEA
In the first quarter of 2024, Methenamine prices in the MEA region saw a significant decrease driven by several factors including reduced demand, lower costs of feedstocks, and ample existing inventories. This decline was most pronounced in Saudi Arabia, where prices experienced substantial changes. Throughout the quarter, the pricing trend for Methenamine remained negative, declining compared to the previous quarter. Key contributors to this trend included diminished demand from downstream industries such as pharmaceuticals, rubber, polymers, and resins. The lower demand, coupled with decreased prices of major inputs like ammonia and formaldehyde, played a pivotal role in pushing Methenamine prices downwards. Additionally, sufficient stockpiles held by major importers reduced the urgency among suppliers to build up new inventories, prompting cautious destocking strategies among traders which further pressured prices. The quarter witnessed a consistent decline in prices without significant differentiation between its halves. Compared to the same quarter last year, Methenamine prices in Q1 2024 fell by 12%, and on a quarterly basis, there was a 13% decrease. At the end of the quarter, Methenamine was priced at USD 818/MT FOB Al Jubail in Saudi Arabia, highlighting the prevailing bearish sentiment in the market. Despite some fluctuations in feedstock costs and market dynamics, Methenamine prices in Q1 2024 predominantly reflected a downward trajectory.
Europe
In the first quarter of 2024, the Methenamine market in Europe demonstrated a pattern of stability with slight fluctuations, deeply influenced by interplaying factors of feedstock costs and demand variations. The quarter started with lower Methenamine prices, primarily driven by reduced prices for key feedstocks such as Ammonia and Formaldehyde, coupled with a subdued demand from critical downstream sectors including pharmaceuticals, rubber, and polymers. This price reduction reflected broader economic trends, where suppliers and traders exercised caution, holding off on significant inventory build-ups amidst a market awash with high supply levels.
As the quarter progressed, the market witnessed modest stabilization, with prices gradually firming up but remaining sensitive to shifts in both the supply chain and sector-specific demands. The slight uptick observed towards the latter part of the quarter was tentatively linked to a mild recovery in demand from the pharmaceutical and polymer sectors, sectors that traditionally exert significant influence over Methenamine pricing dynamics. Moreover, volatility in crude oil prices intermittently affected the cost structures of Methenamine's primary feedstocks, thereby impacting the overall pricing framework.
Throughout the quarter, the market environment was characterized by a cautious optimism, with market participants closely monitoring each other's moves and global economic indicators to better forecast future trends. This led to a slow but steady adjustment in stock levels, with suppliers managing their stocks to avoid overaccumulation and prepare for anticipated demand increases. Despite these adjustments, the overall market mood remained one of watchful waiting, with hopes pinned on a more robust recovery in downstream demand to support a more sustained price improvement.
For the Quarter Ending December 2023
North America
At the conclusion of the 4th quarter of 2023, the Methenamine market in the USA exhibited a notable decline in prices, primarily influenced by factors impacting key feedstocks such as Formaldehyde and Ammonia in the broader crude market. The chemical sectors faced challenges, experiencing below-expectation performances in both domestic markets and major importing partners like China.
While the Pharma Sector witnessed an outperformance. This contributed to mixed demands in the downstream market. The Purchasing Managers' Index (PMI) reflected a stagnant state of industrial activities, suggesting subdued overall market conditions. In addition to the broader market trends, the Methenamine supply chain in the USA witnessed a slowdown, possibly due to decreased exports or production constraints.
Suppliers responded to the market dynamics by lowering ex-quotation prices, marking a trend of decline in Methenamine prices during the quarter. The decline is further indicative of subdued demand from downstream sectors, prompting suppliers to adjust their pricing strategies. Technically, the price trend pointed downward, signalling minimal trading interest and scarce demand from both producers and distributors. The Methenamine market in the USA experienced destocking activities as suppliers prioritized prompt inventory replenishment over extensive accumulation.
APAC
By the conclusion of the 4th Quarter in 2023, the Methenamine market in China experienced a decline in prices, primarily influenced by the reduced pricing observed in the major exporting country, Russia. The Chinese market is currently facing a downturn, marked by an overall decrease in demand from significant exporting partners. This decline in demand has notably impacted the consumption of Methenamine in various sectors, including Pharma, Rubber, and Polymer. In response to the prevailing market conditions, suppliers have adjusted their ex-quotation prices, leading to a downward trend in Methenamine prices for the current quarter. The supply of Methenamine in China has outpaced demand, with major suppliers maintaining ample inventory levels. This surplus in supply, coupled with subdued market sentiments related to pricing, has resulted in a cautious approach towards production and a lack of fresh bidding activities. Notably, there have been no recent activities for new biddings from suppliers for the fresh accumulation of inventories. As the quarter concludes, the Methenamine price stands at 1013 USD/MT Ex-Shandong, reflecting a decline of 6.11%.
Europe
As the 4th quarter of 2023 concluded, the Methenamine market in Europe witnessed a declining trend in prices. The broader crude market's ongoing decline has impacted the costs of crucial feedstocks such as Formaldehyde and Ammonia. Both the Pharma and Chemical sectors are underperforming, both domestically and in major importing markets like China, contributing to challenges in the downstream market. The Purchasing Managers' Index (PMI) reflects stagnant industrial activities in the market. Limited Methenamine supply in Russia results from minimal exports, leading to increased stockpiles among suppliers. The consistent decline in prices indicates that suppliers are not actively engaging in extensive accumulation, opting for prompt inventory replenishment rather than larger-scale operations. Methenamine utilization in Russia appears low, contrasting with a significant uptick in the Pharma Sector's performance. From a technical standpoint, the price is following a downward trend, indicative of minimal trading interest and scarce demand from producers and distributors, pointing to subdued market activity. During this quarter, the price continued to experience short build-up activities from suppliers, resulting in a lack of fresh orders and contributing to the destocking of inventories. As of this quarter, the Methenamine price stands at 810 USD/MT FOB-Novosibirsk, reflecting a decline of 4.70%.
For the Quarter Ending September 2023
North America
In the North American market, the price trend of Methenamine declined during the 3rd quarter ending on September 2023. The decrease in the prices of its upstream Ammonia and Formaldehyde market has negatively impacted Methenamine's market value, a downstream derivative of Ammonia and Formaldehyde. The production costs for manufacturing Methenamine have also significantly decreased, acting as one of the factors for the decreased prices of the commodity. Due to the decreased demand from the downstream pharmaceutical sector, the consumption of the existing inventories in the storage units declined. As a result of sufficient inventories, the suppliers declined their offers and bids to improve their profit margins and instead provided discounts to the buyers on bulk purchases to clear out the inventories for the upcoming fresh stocks. The demand for the product from the downstream pharmaceutical sector was compensated by the existing inventories in the storage units with no need to restock the commodity. Due to the sufficient stocks, the production rate of the commodity was reduced to avoid the oversupplies of the product.
Asia-Pacific
During the 3rd quarter ending on September 2023, the prices of Methenamine weakened and reached USD 895/MT (CIF Lianyungang) as there has been an upswing in the availability of this chemical compound in China, as indicated by trading statistics. Furthermore, the supply of two key raw materials utilized in the synthesis of Methenamine, namely formaldehyde and Ammonia, has diminished owing to heightened demand from the phenolic resin industry. This surge in demand has resulted in lower inventory levels of these precursor substances, thereby contributing to a decrease in overall market equilibrium. Notwithstanding these alterations, the requirement for Methenamine persists, and obtaining adequate amounts of the compound remains feasible to fulfill downstream necessities within the Chinese market. The pharmaceutical sector's need for Methenamine, which is a crucial component in certain medications and antibiotics, created a competitive market environment, leading to higher prices. These combined factors contributed to the noticeable price uptick in Methenamine, posing potential challenges for both producers and consumers in the Chinese market.
Europe
The price trend of Methenamine declined during the third quarter ending on September 2023 and reached USD 727/MT (FOB-Novosibirsk). In July 2023, the price of Methenamine plunged in the Russian market as the downstream demand for Phenolic Resins plunged as per trade data and merchants' logbooks. The inventory level elevated due to lower consumption of inventories in the storage units. Unfortunately, the industry was down 39% over the past 12 months. Investors were pessimistic about the Russian Oil and Gas industry, indicating that they anticipate long-term growth rates will be lower than they have historically. Similarly, in August 2023, the prolonged effects of unfavorable market conditions led to a decline in the industry's overall value over the previous year. However, in September 2023, the price trend was monitored to be increasing as the surge in demand for the product from the downstream pharmaceutical and cosmetic market resulted in the increased production cost adding up to the price of the commodity, which further gave suppliers a great opportunity to increase their sales as well as profit margins. Additionally, the upstream formaldehyde and ammonia enterprises were observed to be increasing, acting as one factor for enhanced product prices.
MEA
The market price of Methenamine declined within the Saudi Arabian market in the 3rd quarter of 2023, ending on September 2023. However, in July and August 2023, the surge in price was primarily driven by two pivotal factors. To begin with, the consistent escalation in the cost of its primary raw material, Ammonia, over the preceding two weeks significantly elevated the production expenses associated with Methenamine. The surge in Ammonia prices can be attributed to a range of market dynamics, including shortages in supply and increased production costs. Secondly, Methenamine serves as an indispensable ingredient in the production of certain medications and antibiotics, making it a highly sought-after component within the pharmaceutical industry. This heightened demand resulted in a competitive marketplace, subsequently pushing prices upwards. These intertwined factors collectively contributed to the conspicuous rise in Methenamine prices, presenting potential challenges for both producers and consumers operating within the Saudi Arabian market. Whereas, in September 2023, the price of the commodity declined as sufficient stocks were present in the storage units, and the demand from the downstream market was low, due to which the suppliers had to provide discounts on the bulk purchases to clear out the inventories for the upcoming fresh stocks.
For the Quarter Ending June 2023
North America
As reported recently, the market value of Methenamine fell in the United States during Q2 of 2023. Nonetheless, the Textile sector showed promising improvements, with firms registering a 4.0% rise in their growth rate over the past week. However, the industry suffered a steep 28% decline in the previous year. Market experts expect robust earnings growth of 111% annually in the upcoming years. Investors remain wary about the outlook for the American Textile industry, believing that future growth might not match historical trends. This skepticism is evident in the industry's current P/S ratio of 0.25x, which is much lower than its 3-year average P/S ratio of 1.2x. Additionally, the stockpiling of Methenamine has risen in the US market due to weaker demand from downstream textile industries, according to market sources. Companies are adapting better to the challenges posed by falling profit margins amid stagnant sales volumes in the region. The supply chain situation seemed to be moderate in the North American market, and the shipments were steady, as per reported by the traders.
APAC
For the upcoming period, experts forecast a 29% annual growth rate for the Tires Rubber Industry's earnings. Earnings for the sector have been relatively stable over the past three years, which may indicate a drop in sales or an increase in production expenses resulting in lower profits in the regional market. Moreover, the stockpile of specific goods like Methenamine has expanded because of diminished demand from downstream buyers based on trade information gathered from local traders and merchants. Also, the market value of Methenamine experienced a sharp fall in the Chinese market when it reached USD 976/ton CIF Lianyungang in May during the second quarter of 2023. The PMI in the Chinese market depleted at 50.5, and CPI remained steady as per traders' quotations. In the last week, the logistics industry is up 3.2%, with SF Holding up 5.1%. At the same time, CITIC Offshore Helicopter was down 8.7%. In the past year, the industry has been down 14%. Looking forward, earnings are forecast to grow by 25% annually.
Europe
Market prices for Methenamine fell in Europe within the Russian territory, specifically in Novosibirsk, where the FOB price was recorded at USD 840/ton. Due to this decrease in demand, buyers in the packaging and textile sectors seem to have lost interest in Methenamine. During this same period, the Russian Consumer Price Index showed fluctuations, confirming that market conditions were unstable. These findings suggest that various factors influence the state of the market. Investors appear to be bearish toward the Russian market, implying that they expect future earnings to underperform historical averages. Currently, the market trades at a PE ratio of 3.5x, which is below its 3-year average PE of 6.2x. Meanwhile, the stock of Feed Cyanohydrin and Formaldehyde rose due to falling market sentiment, as reported by merchants who provided quotes. The decrease in interest in Methenamine from buyers situated within the packaging and textile industries contributed to this state of affairs. Indeed, according to reports received, the Russian market's Consumer Price Index exhibited some volatility during this timeframe, corroborating the observation that market conditions were subject to change. Thus, it can be surmised that the forces shaping the mood in the sector encompass diverse factors.
MEA
The market value of Methenamine plummeted in the Saudi Arabian region to USD 903/ton FOB Al Jubail. The inventory level of the product rose with the traders as per market data in the middle east. Unfortunately, though, the industry has been down 8.6% over the past 12 months. As for the next few years, the earnings are forecasted to decline by 4.8 % per annum. Investors are most optimistic about the Energy Services industry, which is trading above its 3-year average PE ratio of 11.3x. Analysts are expecting annual earnings growth of 16.7%, which is lower than the prior year's growth of 67.7% per year. Investors are most pessimistic about the Oil and Gas industry, which is trading below its 3-year average of 23.5x. Analysts are most optimistic about the Energy Services industry, expecting annual earnings growth of 17% over the next five years. However, this is lower than its past earnings growth rate of 68% per year. In contrast, the Oil and Gas industry is expected to see its earnings decline by 4.9% per year over the next few years.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Methenamine market in the USA experienced a significant decline in prices. This was mainly attributed to the fall in prices of the feedstock Ammonia within the country. While the downstream Pharma sector showed moderate demand for the product, the supply was considerably high, leading to a drop in prices. Moreover, the ongoing bank crises in the USA had an adverse impact on the demand for Methenamine, further contributing to the price reduction. As consumer spending decreased and business investments saw a slump, the demand for the product was severely affected. Additionally, the credit crunch caused by the bank crisis made it difficult for businesses to access credit, resulting in a decrease in production and demand. Furthermore, the international market for Methenamine also saw a decrease in demand during this quarter. This was mainly due to the ample availability of the product in the global market. The combined impact of these factors led to a significant decline in the price of Methenamine in the USA.
APAC
The Q1 of 2023 witnessed a significant decline in Methenamine prices in the Asian market, primarily due to the reduced cost of its feedstock, Ammonia. The global market experienced an increase in the supply of Ammonia, which directly impacted the Methenamine prices in Asia. In China, the price of the product witnessed a decline of approximately 2.6% and 1.1% in January and February, respectively, and 0.7% in March. This can be attributed to the decrease in the cost of Ammonia, which witnessed a decline of around 0.7%, and 0.5% in January and February, respectively, and approximately 2.3% in March. Moreover, during the Q1 of 2023, the supply of Methenamine in the Chinese market increased while the demand remained moderate due to the uncertainty surrounding the Chinese Lunar New Year. As a result, the price of Methenamine at the end of this quarter was hovering around USD 1023/MT. This decline in prices had a significant impact on the Asian market and the global Methenamine industry.
Europe
The European market witnessed a significant drop in the price of Methenamine during the first quarter of 2023. The primary reason for this price decrease was the plummeting cost of feedstock Ammonia in the country. However, the downstream pharma sector saw moderate demand for the product. However, the purchasing activity in Europe was lower during this period due to increased inflation and a high cost of living. In Russia, the price of Methenamine saw a decline of around 2.6% in the first month of the quarter, and in the following two months, it dropped by around 0.1% and 0.5%, respectively. Overseas demand also decreased during this period as there was an abundance of the product in the global market. This market trend indicates a favorable time for buyers to enter the market and secure Methenamine at a lower price, making it a great opportunity for businesses looking to purchase this product.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the price of Methenamine in the United States decreased in response to the falling cost of feedstock Ammonia in the market. Orders from the procurers remained moderate, and the pharma industry demand was stable due to ample stock availability of the product. The stagnant global market in Q4 continued to affect the domestic and international markets. According to the players in the market, the majority of the purchases were based on demand. The approaching holiday resulted in further declines in buyer demand and orders during the fourth quarter.
APAC
During the fourth quarter of 2022, there was a mixed-price trend for Methenamine in Asia. In November, the price of Methenamine rose due to the tight supply of the product from traders. The resurgence of COVID cases in China disrupted the supply chain, affected demand for export activities to overseas markets, and eventually led to an economic slowdown. To keep cases under control, the Chinese government implemented a Zero COVID policy, which slowed trading and reduced orders from end-use industries. The price of Methenamine decreased in December as a result of the steady supply from traders and adequate ground availability.
Europe
In Europe, the price of Methenamine decreased in the fourth quarter of 2022. The negative price trend of Methenamine was bolstered by the sharp decline of feedstock Ammonia in Europe. The repercussions of the Russia-Ukrainian war still persisted during this quarter, and the supply chain remained disturbed. Due to the slowdown in trading activities in importing countries like China, more products are left in Russia, and the merchants have stockpiled the product in the market. Because the product was readily available, there was less demand from the downstream pharmaceutical industry. Because there were no significant port congestions in Europe, product movement was smooth, and freight costs were reduced.
For the Quarter Ending September 2022
North America
The price trend of Methenamine observed mixed market sentiments in the North American region throughout the third quarter of 2022. The high demand from the downstream Pharma Industry led to an increase in the price of Methenamine in the region. The orders from purchasers were high due to increased consumer consumption, which supported the price movement of Methenamine. The supply chain was disrupted, and good deliveries to the destination were delayed due to the port being congested in the USA during the third quarter. As a ripple effect, the cost of Methenamine was settled at USD 1510/MT during the quarter ending in 2022.
APAC
The price of Methenamine observed mixed sentiments in the Asian market throughout the third quarter of 2022. During the first two months of the quarter, Methenamine witnessed a decline in the market due to short supply from Europe due to the supply chain disruption caused by an ongoing war between Russia and Ukraine. The demand from the Pharma industry was high, and insufficient supply of the product further increased the price of Methenamine. The last month observed a downward trajectory due to adequate inventory from the traders and stable supply to the market. The cheaper imported cargo from Russia dipped the price in the Chinese market. The average cost of Methenamine hovered around USD 1280/MT on an Ex-Shandong basis during the quarter ending of 2022.
Europe
During the third quarter of 2022, the Methenamine price witnessed mixed sentiments in Eurozone throughout the quarter. In the first two months of the third quarter, Methenamine's cost was upward due to high demand from downstream Pharma industries. Russia is one of the largest manufacturers of Methenamine globally. The war between Russia and Ukraine has limited the supply to the importing countries, and the supply chain was disrupted in the region. The production cost was high due to high natural gas prices. The last month of the quarter showed a decline in the market due to increased product availability. The manufacturers have quoted lower offer prices due to high availability in the region and moderate demand from the Pharma industry. The average price of Methenamine was settled at USD 1148/MT on a FOB Novosibirsk basis during the third quarter of 2022.
For the Quarter Ending June 2022
North America
North American Methenamine prices remained buoyant throughout Q2 2022, owing to rising raw material costs amidst stable demand from the international market. The Houston-based market source revealed that the price of several pharma-related raw materials kept rising throughout the quarter, where the huge burden of inflationary pressure remained the key driving factor. Furthermore, sudden price increment in natural gas during the second half of the quarter, driven by the ongoing Russo-Ukrainian war, also affected the pricing dynamics of the product across the US market. In addition, demand dynamics for the product from the downstream pharma sector also supported the frequent offtakes from the domestic and international markets.
Asia
After witnessing a consistent hike for over a couple of months, Methenamine's price remained stable in the domestic market during June in Asia. As per the insights, market players remained anxious about demand fundamentals for the product from the Chinese market, as pandemic-related uncertainties did not vanish from the domestic market. Further, high raw material costs remained a prime factor in previous consistent price revisions in the country. In addition, rising inflationary pressure has also remained a matter of concern for key players, despite mild demand fundamentals from the domestic market.
Europe
Despite all the disruption across Europe's regional market, demand fundamentals for the product remained stable throughout the quarter. As per the market sources, being an important part of global supplies, Russian players kept their supplies stable for the global market while rising upstream costs kept on hampering overall pricing dynamics for the global market. War-related volatility has been stressing the supply chain of several commodities across the European and US markets, leading to unnecessary price hikes. In addition, domestic players are also trying to improve their margins by exporting cargoes at higher prices.
For the Quarter Ending Quarter March 2022
North America
High inflationary pressure has been a major concern for North American players since January 2022. Demand fundamentals for the product remained stable to firm, as the economic activities maintained overall firmness throughout the quarter. Since the Russia Ukraine war escalated, US and other major economies took harsh decisions on Russia, making it harder for the country to trade worldwide. These decisions affected global market dynamics and made several things expensive due to fuming raw material cost. Thus, under the influence of high raw material cost, Methenamine price rose consistently and stood around USD 1310/MT during February 2022 in the USA.
Asia Pacific
Mixed sentiments for Methenamine were observed in Asian market during Q1 2022. In the Chinese domestic market, the prices of Methenamine continued to rally upwards during the last two month of the quarter as the discussion for CIF was assessed at USD 995 per MT in the mid of February. These price hikes were supported by the regional rise in prices of upstream Ammonia, followed by the rising natural gas prices along with soaring container fees and sanctions against Belarus. The increased energy prices, along with the disrupted supply of raw materials and high logistical costs, were other factors that have contributed to the surge in Methenamine prices across Asia. As the markets in China were slowly gaining momentum after the Spring Festival holidays, the prices were expected to increase further in March, which was disrupted by sudden rise of another wave of the pandemic in the country.
Europe
The prices of Methenamine continued to hop upwards in Europe consecutively for the second week of February on the back of the spike in the feedstock prices. After witnessing a hike of 1.9%, the discussions for FOB Russia for Methenamine culminated at USD 938 per MT during the mid of February. The skyrocketing upstream Ammonia prices followed by high costs of Natural gas has exacerbated the price trend of Methenamine in the Russian domestic market. Country’s market sentiments were depressed under the influence of ongoing war, demand fundamentals for the product were stable across domestic market. Furthermore, taking pressure from hefty sanctions imposed by key economies, Hexamethylene Tetramine price maintained an over stability due to trade disturbance. Furthermore, Ruble has been falling consistently against the USD since the beginning of the war, which affected trade dynamics of the country.
