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%.
