For the Quarter Ending September 2024
North America
In Q3 2024, the North America region witnessed a notable decline in Methyl Formate prices, reflecting a challenging market environment characterized by a confluence of factors followed by an uptrend.
In July 2024, the insufficient cost support from the Methanol feedstock market exacerbated the high production costs which increased the price trend of Methyl Formate.
However, the market has declined in August 2024 due to increased production capacities have led to an oversupply situation, while stable raw material costs for methanol allow manufacturers to maintain competitive pricing, further contributing to the price decline.
The -11% decrease from the same quarter last year can be attributed to weakening demand across various industries, particularly in downstream sectors like pharmaceuticals and agriculture. Seasonality and market correlation played a pivotal role in shaping pricing dynamics, with subdued demand and oversupply conditions amplifying the price decline. The latest quarter-ending price of USD 1878/MT CFR-Texas in the USA underscores the prevailing bearish sentiment, highlighting a challenging pricing environment marked by sustained decreases in Methyl Formate prices.
APAC
In Q3 2024, the Methyl Formate market in the APAC region experienced a notable increase in prices, with China leading the surge following the downtrend. During July 2024, The decline in the prices was attributed to the lacklustre demand from the downstream sectors. Enhanced production capacity could be contributed to increased availability of methyl formate which ultimately led to decreased prices. However, the price trend was increased by August 2024 due to increase in the production costs due to incline in feedstock Methanol, cautious production management, and strategic market positioning by suppliers. Additionally, ongoing investments in methanol production and improvements in manufacturing efficiency have contributed to a reliable supply chain. This quarter saw a significant increase in prices compared to the same quarter last year, with a notable -36% change. Additionally, the quarter recorded a slight decrease of -2% from the previous quarter in 2024. The latter half of the quarter saw a 5% price increase compared to the first half, indicating a positive trend. The quarter-ending price for Methyl Formate in China stood at USD 1133/MT FOB-Qingdao, signaling a consistent and significant increase in pricing throughout Q3.
Europe
In Q3 2024, the Methyl Formate market in Europe witnessed a significant decline in prices, primarily driven by weak demand from downstream industries, followed by an uptrend. During July 2024, the price trend was increased due to increase in the production costs due to incline in feedstock Methanol. However, the market prices slumped by sluggish offtake in key sectors such as construction, automotive, and pharmaceuticals, leading to reduced consumption of Methyl Formate. The correlation between weak demand and increased supply from expanded production capacities created a bearish sentiment in the market. The Netherlands experienced the most substantial price changes, with a 13% decrease compared to the same quarter last year. Within Q3 2024, prices dropped by 4% from the previous quarter, and a further 8% decline was observed between the first and second half of the quarter. The quarter-ending price for Methyl Formate in Netherlands stood at USD 1419/MT FD-Rotterdam, reflecting the overall negative pricing environment characterized by consistent decreases.
For the Quarter Ending June 2024
North America
In Q2 2024, the imported Methyl Formate market in North America experienced a robust upward trajectory, heavily influenced by constrained supply and heightened demand across various downstream sectors. Key factors driving this price surge included limited availability due to production bottlenecks, increased production costs, and robust import activity during June 2024. Additionally, the downstream markets, particularly the R-22 refrigerant and agricultural industries, saw elevated demand, exacerbating the supply-demand imbalance. Meanwhile, the supply of Methyl Formate within Germany itself remained subdued, prompting German suppliers to increase their quotations to the North American market.
In the USA, which witnessed the most significant price movements, the market demonstrated a consistent bullish trend. Seasonality played a role, with warmer temperatures boosting demand for refrigerants from April to May 2024. A notable 4% increase from the previous quarter in 2024 was recorded, signaling sustained market strength.
The pricing environment in Q2 2024 was overwhelmingly positive, driven by strong demand, supply constraints, and increasing production costs, culminating in a marked price rise for Methyl Formate in the USA.
APAC
In Q2 2024, the Methyl Formate market in the Asia-Pacific (APAC) region experienced a notable decline in prices, marked by a complex interplay of market dynamics followed by a price hike. In April 2024, the insufficient cost support from the Methanol feedstock market exacerbated the high production costs which increased the price trend of Methyl Formate. However, the overall pricing environment was negative, driven by several significant factors. Firstly, ample product inventories from previous quarters led to oversupply conditions that exerted downward pressure on prices. Secondly, the demand from downstream industries, including the Esters of Formic Acid and agrochemical sectors, remained subdued, further contributing to the pricing decline. Additionally, declining fresh sales and trading outlook uncertainties played a critical role in shaping market sentiment bearish during May 2024. Focusing on South Korea, where the maximum price changes were observed, the market reflected a clear downward trend. Despite a slight quarterly increase of 1% from the previous quarter, the year-on-year comparison showed a significant decline of 18%.
Europe
In Q2 2024, Methyl Formate prices in the Europe region exhibited a stable trend, primarily influenced by subdued market activity and tepid demand from downstream sectors during the second half of the quarter. However, in April 2024, the market experienced a bullish trend as Methyl Formate operators have been posting a rise in margins along with healthy purchases from downstream enterprises including solvents in the Paint and Personal care industry. While, during May to June 2024, significant factors contributing to this stability include high inventory levels, cautious production adjustments by manufacturers, and moderate feedstock methanol prices. Despite regional variations, the overall pricing environment remained largely unchanged due to restrained buying interest and efforts to manage stock levels effectively. Germany, in particular, witnessed the most pronounced price fluctuations within this context. The market experienced a 4% increase from the previous quarter, driven by a slight rebound in demand and strategic restocking activities. Nonetheless, compared to the same quarter last year, prices declined by 5%, reflecting ongoing market challenges, including weak demand fundamentals and elevated storage levels. This consistent sentiment underscores a stable pricing environment, balancing between moderate demand recovery and persistent supply-side pressures.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been challenging for the Methyl Formate market, with prices experiencing a downward trend in the North America region. Several factors have influenced market prices, including a weakening global economy, abundant inventories, and slow demand recovery. These factors have raised concerns about shrinking profit margins and a sluggish purchasing trend.
In the USA, Methyl Formate prices have declined as a result of limited demand and ample supply. The downstream industries, such as the R-22 refrigerant and derivative Esters of Formic Acid sectors, have shown weak demand, leading to a surplus in inventory. This has resulted in manufacturers offering attractive deals to clear their storage units. The overall trend in Methyl Formate prices during the first quarter has been bearish, with prices decreasing by around 3% on a monthly basis.
This decline in prices can be attributed to the lackluster demand, limited imports from Europe, and low purchasing sentiment among suppliers. Looking at the quarter as a whole, there has been a negative correlation in price changes compared to the same quarter last year. However, there has been a slight improvement in prices compared to the previous quarter of 2024. In conclusion, the pricing environment for Methyl Formate in the North America region, particularly in the USA, has been negative in the first quarter of 2024. The market has been plagued by weak demand, ample supply, and declining prices. The quarter-ending price for Methyl Formate CFR-Texas in the USA is USD 1930/MT.
APAC
The pricing environment for Methyl Formate in the APAC region during Q1 2024 has been influenced by various factors, resulting in sluggish market conditions. Overall, the quarter has seen a downward trend in prices, with significant price changes observed in South Korea. In South Korea, the market experienced a bearish sentiment, with prices declining due to sluggish market purchases and lackluster demand. This decline was further exacerbated by a surplus of Methyl Formate inventory and reduced trading activity. The pricing environment in South Korea has been particularly volatile, with fluctuations in feedstock Methanol prices and limited purchasing activities contributing to the price changes. Throughout the quarter, the market has shown seasonality and correlation in price changes. The price of Methyl Formate in South Korea has decreased by a significant percentage from the same quarter last year. Additionally, there has been a decline in prices from the previous quarter in 2024. In terms of price comparison between the first and second half of the quarter, there is a notable difference, although specific percentage figures were not provided. As of the end of the quarter, the price of Methyl Formate in South Korea was recorded at USD 1062/MT FOB-Busan. This reflects the overall bearish sentiment and downward price trend observed during the quarter. Overall, the pricing environment for Methyl Formate in the APAC region during Q1 2024 has been characterized by a mix of negative and stable market conditions, with South Korea experiencing significant price changes and a bearish sentiment.
Europe
The European market for Methyl Formate in Q1 2024 has experienced a bearish pricing environment, with prices declining throughout the quarter. This downward trend can be attributed to several factors, including reduced downstream demand, sluggish trading activities, and ample product availability. The overall market sentiment has been cautious, with buyers exercising restraint in their purchasing approach. In Belgium, the pricing trend for Methyl Formate has followed the overall European market trend, with prices declining steadily. This decline is primarily driven by weak demand from downstream industries and a lack of supply pressure. Market participants have noticed a hesitancy among clients, likely due to political and economic uncertainty and increased financing expenses. Looking at the overall trend, there has been a consistent decrease in Methyl Formate prices in the European market compared to the same quarter last year. This decline can be attributed to the sluggish demand and ample product availability. Additionally, there has been a notable decrease in trading activities and limited interest in accumulation. In terms of seasonality, there is no specific mention of any seasonal variations in the pricing of Methyl Formate in the provided data. However, the overall trend suggests a bearish pricing environment, with prices declining steadily. In conclusion, the pricing environment for Methyl Formate in the European market, including Belgium, has been negative in Q1 2024. Prices have declined due to weak demand, limited trading activities, and ample product availability. The latest quarter-ending price for Methyl Formate FD-Antwerp in Belgium is USD 1630/MT.
For the Quarter Ending December 2023
North America
This quarter, the price of Methyl Formate in the North American market remains steady when compared with the previous quarter. Buyers didn't show much interest in bulk purchases of Methyl Formate this month, with prices plunged along with slow market offtakes. Enough supply was already available on the US market, and trading dynamics remain limited.
Trades of Methyl Formate from South Korea and Germany to the USA distressed due to gloomy market purchases and trading held on the immediate basis. In Dec, the price of Methyl Formate in the USA declined to USD 2000/ton CFR Texas. With limited product demand and bearish spot prices in the region, the Methyl Formate market remain affected with strong market fundamentals.
Exports from China and Germany to the USA also declined with revision in the price trend for the fresh stock. Continued bottlenecks in the Panama Canal vessel movement via the Cape Route impacted cross-basin trade flows and supply into Asia Pacific. Moreover, a surge in competitive power on the part of the local producer paved the way for higher import offers.
Asia Pacific
In Q4 2023, the price trend of Methyl Formate in APAC region witnessed a sluggish market trend in the wake of limited spot market purchases and lackluster trading fundamentals. The export of Methyl Formate from China to India and other Asian regions has witnessed a decrease due to reduced market trades and limited trading activities. Enterprises are grappling with elevated inventories as demand from downstream industries remains subdued. Negotiations for bulk purchases from suppliers are resulting in discounts for buyers engaging in large-volume transactions. In Dec 2023, the price of Methyl Formate in China declined to USD 1390/ton FOB Qingdao. With the market's downturn and decline in pre-trading activity, the downstream R-22 refrigerant and solvent industries have begun to progressively decline their demand for Methyl Formate. Slow demand for Methyl Formate resulted in a feeble market, and this month's market contraction further reduced the plant's operating rate. The supply of Methyl Formate remains sufficient and healthy export of Methyl Formate this quarter which helps the prices to decline further. Slack demand across domestic and import markets kept buying limited cargoes and outweighed supply limitations.
Europe
This quarter, the Methyl Formate market showcased a feeble price trend with limited product purchasing in the region. Trading of Methyl Formate from Germany to other European region traded moderately as per the downstream requirement. With the weak purchasing activities and limited trading fundamentals, the Methyl Formate price in Germany capped from further downward momentum. The product inventories remain adequate and market players remain reluctant to increase the prices. In Q4 2023, the price trend of Methyl Formate in Germany declined to USD 1605/ton FOB Hamburg. The demand for Methyl Formate from the downstream solvent and refrigerant industries has plunged and the market trades remain on the lower end. Market transactions declined this quarter due to weak netback and rising stocks among the manufacturing units. Low season has kicked off, and economic challenges continue to hamper the refrigerant industry, which prevents Methyl Formate hikes. Bidding for the new stocks remains limited and feeble trading from the end users forces the producers to decrease the cost. Trades of Methyl Formate from Germany to Belgium and the Netherlands slumped with weak momentum in trading activities.
