Sluggish Methenamine Market: Impact of Lower Feedstock Prices and Supplier’s Inactivity
Sluggish Methenamine Market: Impact of Lower Feedstock Prices and Supplier’s Inactivity

Sluggish Methenamine Market: Impact of Lower Feedstock Prices and Supplier’s Inactivity

  • 28-Dec-2023 2:51 PM
  • Journalist: Stella Fernandes

The global market for Methenamine experienced a significant decline in prices this week, primarily attributed to a reduction in feedstock Formaldehyde and Ammonia prices and unfavourable trading activities. The decrease in the cost of raw materials contributed to the overall slump in the price trend. Additionally, traders' actions played a role in this downturn, as they refrained from accumulating inventories, likely in response to the observed downward trend in prices.

Over the past 2 weeks, Methenamine prices in Russia FOB-Novosibirsk have witnessed a substantial 7.14% decline, indicative of a significant downturn influenced by various factors. The overarching descent in the Crude Oil market has placed downward pressure on Methenamine prices, as essential feedstocks like Formaldehyde and Ammonia have experienced cost reductions, thereby contributing to a lowering of production expenses. In Russia, the constrained Methenamine supply is a consequence of limited exports, leading to an accumulation of stocks among suppliers. Methenamine utilization in Russia seems to be at a low point, in contrast to the improved performance observed in the Plastic and Resin as well as Pharma Sectors. Furthermore, a pivotal role in the overall price decline is played by subdued demand from importing nations like China. These multifaceted factors underscore the intricate and dynamic nature of the Methenamine market, where fluctuations in global commodity prices and shifts in demand patterns collectively wield significant influence over its pricing dynamics.

In China, the prices of Methenamine have declined by 2.43% Ex- Shandong with the week ending on 22nd Dec. The market faces challenges due to underperformance in both the Pharma and Chemical sectors in domestic market, leading to difficulties in the downstream market. The decline in Methenamine prices suggests that suppliers are not actively accumulating stocks, with inventory replenishment occurring promptly rather than through extensive operations. From a technical standpoint, a downward price trend indicates minimal trading interest and scarce demand, reflecting subdued market activity. Overall, the market is characterized by sluggishness, with challenges stemming from both sector-specific underperformance and the resulting impact on supply chains and pricing dynamics in key markets.

As per ChemAnalyst projections, Methenamine prices are expected to maintain a sluggish trend in the upcoming week, influenced by various factors. A significant decline in Formaldehyde prices has contributed to an overall downward trend, reducing the likelihood of a substantial upward movement in Methenamine prices. The price fluctuations, including long unwinding since the 1st week of November, have prompted short build-up activities from suppliers, further pushing Methenamine prices in a downward trajectory. This scenario suggests a lower probability of fresh bids leading to an upward price movement. The interplay of these factors highlights the current dynamics in the Methenamine market, indicating a cautious and subdued outlook in the near term.

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