Methyl formate values underwent a downward correction through key international markets during the week of May 23 on the heels of adequate supply, limited downstream use, and a lack of global buying activity. While some regions exhibited adequate consumption, the overall market sentiment remained bearish based on the longer-term downtrend in fundamentals.

Prices for methyl formate in India decreased 2.5% due to the abundance of feedstock methanol and good stock levels among suppliers. Demand from areas such as dimethylformamide (DMF) and formic acid appeared to be stable, but the impact of stock availability outweighed it. The downstream demand from pharmaceuticals and agrochemicals also helped absorb some of the stock levels from suppliers, but the flow of stock into the market started to outweigh the need for the product for sale. The sellers started to offer small discounts to relieve excess stock levels, which also diminished prices.

China experienced a similar 2.5% decline, where weak cost support from a 3.7% decline in methanol prices provided downward pressure on methyl formate values. The market continued to show weak activity, shipments were slow to materialize, and purchases were limited to essentials. Formic acid producers continue to see a decline in end-use demand from downstream uses. DMF demand remained stable. With agricultural applications in the off-season and industrial end-uses slow to develop, methyl formate prices faced continued downward pressure due to the inventory level.

In South Korea, prices decreased by 1.7% despite relatively stable methanol feedstock prices. Continued export offers and assimilated domestic availability offered competition in trading, particularly as Korea's exports to India, China, and the U.S. waned. Many international buyers have already made their volumes in Q1, so fresh inquiries decreased, driving sellers to lower pricing strategically when demand waned offshore.

In the US, the price of methyl formate decreased slightly by 1.1%, due to soft demand and stable availability of imported methyl formate from Asian sources, particularly South Korea. The industrial and agrochemical industries were still treating purchases cautiously by securing what was immediately needed from suppliers. Although demand did not improve any stronger than previously projected, demand remained quiet for the week.

In Germany, the price of methyl formate fell by 1.4% amidst a limited export market and, lack of international market interest. Methyl Formate production domestically remained stable, however, weak demand from major export destinations and high inventories worldwide led sellers to discount their offers. Long-term deals remained limited, and most of the market participants are settling for limited short-term shipment projects within a relatively soft pricing environment.

Overall, the global methyl formate market continued to be under pressure, with oversupply and cautious downstream demand continuing to drive pricing dynamics across the regions.