Global Methenamine Price Sustaining Uptrend by the Mid of June
- 23-Jun-2022 5:22 PM
- Journalist: Peter Schmidt
A recent analysis by ChemAnalyst revealed that the price of Methenamine has been consistently rising for the past couple of months, owing to high raw material costs amidst improving demand fundamentals from the global market. As per the recent data, Methenamine prices have risen in China, Saudi Arabia, and Russia during the past two weeks.
ChemAnalyst data shows an increment of around 1% during the third week of June 2022 in the Chinese market. The prime factor that has affected this pricing dynamics was high input cost and prolonged firmness in global freight charges. Despite the fact that freight charges marginally declined for Asia to the USA and some other major trade routes, the Asian freight index kept showing buoyancy throughout May and June 2022. Despite the depressed market fundamentals due to prolonged pandemic-related uncertainties in China, demand for the product maintained overall stability in the pharma sector in the meantime.
On the other side, a similar hike of around 1% was also observed during the third week of June in the domestic market of Russia on a FOB basis, owing to stable offtakes from the neighbouring nations. 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, rising inflationary pressure across the domestic market amidst stable offtake from the international market remained a major driving factor for this price hike.
Meanwhile, the Saudi Arabian market has also been affected by high input costs, compelling domestic players to keep revising their product prices. As per the data, a marginal hike of around 0.7% was observed during the previous week, primarily driven by rising inflationary pressure amidst stable demand from the global market.
As per the ChemAnalyst analysis, inflation has been a major driving factor for consistent price increases in major commodities in the global market, which may take time to vanish completely.