Bullish Demand and Constraints Supply Drives the Global Methyl Formate Prices
- 19-Sep-2022 3:35 PM
- Journalist: Nicholas Seifield
Hamburg, Germany- In the European market, the prices of Methyl Formate are increasing due to rising demand from the Formic Acid derivative market. In Germany, major Methyl Formate producers are struggling to meet the requirement of consumers, prompted by skyrocketing energy prices and Russian gas cuts affecting the Petrochemical market dynamics. The price of downstream Formic Acid is also on the higher end with strong market sentiments and rising exports from Germany to other European regions.
Due to the low boiling temperature of Methyl Formate, transportation and storage became problematic, resulting in revision in prices for overseas supplies. On the other hand, the water level of the Rhine river stream tumbled to its low because of the rising temperature in Germany and other European regions, confining the distribution of coal, Natural Gas, and other commodities. Feedstock Methanol prices also remain brisk with strong market sentiments and insufficient product availability.
In the US, higher inflation and rail strikes brought fragility to the supply chain. Elevated feedstock Methanol prices and high purchasing appetite in the region brought about disruption in market dynamics. Imports of Methyl Formate from China also remain tepid due to supply constraints and bullish demand for Formic Acid.
According to ChemAnalyst, the price of Methyl Formate in the global market will surge in forthcoming weeks with strong bidding for new stock cargoes by the suppliers. In Europe, the low level of the Rhine River will alter the trading activities, and high logistics costs will create an issue for the producers to provide product connectivity to different regions. In the US, falling Natural Gas prices due to delay in resumption at the LNG Freeport terminal will increase the supply of Natural Gas and provide ease in Methyl Formate price. However, logistics constraints and rising transportation costs will prevail for domestic product connectivity.