The methyl formate market saw considerable price variations in March 2025 in both the United States and China, but overall, trends reflect supply-demand dynamics and extraneous influences such as weather-related shutdowns and port congestion.

In China, methyl formate prices started at a stable point as March began. Prices were stable as a result of improved supply and production levels after the Chinese Lunar New Year. Several production plants resumed operations after the holiday, and there was an increased supply of Methyl Formate due to improved operational capabilities. Some downstream activity from the pharma and agrochemicals sectors strengthened slightly, but demand from primary demand sectors--dimethylformamide (DMF) and acetic acid--were still average, therefore the market would not see significant fluctuations.

Apart from marginal rises in methanol prices related to feedstock, the cost of production has remained unchanged overall; methyl formate prices were still stable as well. That said, supply chain issues remain a source of concern due to port congestion in China, specifically at the ports of Shanghai-Ningbo and Qingdao. Inclement weather had taken down vessels waiting at those ports. There were over 90 vessels at the former and nearly 53 vessels still waiting at the latter, adding more dysfunction to every aspect of supply and distribution; on the other hand, fundamentals for the supply of methyl formate held steady.

In week two of March, prices for Methyl Formate have begun to shift lower, due to excess supply in the market, higher inventory levels, and steady customer demand downstream. The concern for berth congestion increased in Qingdao, with the number of vessels waiting for a berth increasing from 53 to 67 as vessels awaited a berth for more than two days. These factors added to the already existing challenges in market instability. By week three of March, methyl formate price situations stabilized again as balanced dynamics of supply and demand came into play. However, Qingdao port sustained a 7-day average of 2.4 days of vessels waiting to dock, as vessels continued to bunch together, detoured by weather and other factors.

In early March in the United States, methyl formate prices remained stable, supported by a balanced supply and demand. There was a slight increase in methanol prices, but manufacturing costs for Methyl Formate did not change significantly. Overall, demand was steady amid bad weather conditions, such as heavy rain and flooding, that affected agricultural and industrial activity. However, good availability of methyl formate was maintained with plenty of inventories and fair supply from North American producers.

The manufacturing rate was somewhat decreased due to the weather freezing, but inventories were more than adequate and there were sufficient imports from foreign suppliers of Methyl Formate, so supplies were not disrupted. Market participants have stated that as the weather improves later in the month that warehouse activity will pick up and logistics will all recover enhancing any stabilization.

By March's third week in the United States, prices began to move lower based on sufficient inventories downstream. Buyers were choosing to utilize current inventories and make their purchases cautiously, given anticipated uncertainty in the market. This caution, along with steady inventories, contributed to a price drop in the third week.

According to ChemAnalyst, the methyl formate market in the United States and China is expected to remain stabilize over the next few weeks. In China, existing supply chain challenges related to port congestion and adverse weather delays may continue to impact supply chain efficiency, while recovery of weather patterns in the United States may improve logistical operations. Overall, we expect the methyl formate markets in the United States and China to remain stable, with future moves in price driven mostly by changes in supply dynamics and downstream demand.