For the Quarter Ending June 2023
As reported recently, the market value of Methenamine fell in the United States during Q2 of 2023. Nonetheless, the Textile sector showed promising improvements, with firms registering a 4.0% rise in their growth rate over the past week. However, the industry suffered a steep 28% decline in the previous year. Market experts expect robust earnings growth of 111% annually in the upcoming years. Investors remain wary about the outlook for the American Textile industry, believing that future growth might not match historical trends. This skepticism is evident in the industry's current P/S ratio of 0.25x, which is much lower than its 3-year average P/S ratio of 1.2x. Additionally, the stockpiling of Methenamine has risen in the US market due to weaker demand from downstream textile industries, according to market sources. Companies are adapting better to the challenges posed by falling profit margins amid stagnant sales volumes in the region. The supply chain situation seemed to be moderate in the North American market, and the shipments were steady, as per reported by the traders.
For the upcoming period, experts forecast a 29% annual growth rate for the Tires Rubber Industry's earnings. Earnings for the sector have been relatively stable over the past three years, which may indicate a drop in sales or an increase in production expenses resulting in lower profits in the regional market. Moreover, the stockpile of specific goods like Methenamine has expanded because of diminished demand from downstream buyers based on trade information gathered from local traders and merchants. Also, the market value of Methenamine experienced a sharp fall in the Chinese market when it reached USD 976/ton CIF Lianyungang in May during the second quarter of 2023. The PMI in the Chinese market depleted at 50.5, and CPI remained steady as per traders' quotations. In the last week, the logistics industry is up 3.2%, with SF Holding up 5.1%. At the same time, CITIC Offshore Helicopter was down 8.7%. In the past year, the industry has been down 14%. Looking forward, earnings are forecast to grow by 25% annually.
Market prices for Methenamine fell in Europe within the Russian territory, specifically in Novosibirsk, where the FOB price was recorded at USD 840/ton. Due to this decrease in demand, buyers in the packaging and textile sectors seem to have lost interest in Methenamine. During this same period, the Russian Consumer Price Index showed fluctuations, confirming that market conditions were unstable. These findings suggest that various factors influence the state of the market. Investors appear to be bearish toward the Russian market, implying that they expect future earnings to underperform historical averages. Currently, the market trades at a PE ratio of 3.5x, which is below its 3-year average PE of 6.2x. Meanwhile, the stock of Feed Cyanohydrin and Formaldehyde rose due to falling market sentiment, as reported by merchants who provided quotes. The decrease in interest in Methenamine from buyers situated within the packaging and textile industries contributed to this state of affairs. Indeed, according to reports received, the Russian market's Consumer Price Index exhibited some volatility during this timeframe, corroborating the observation that market conditions were subject to change. Thus, it can be surmised that the forces shaping the mood in the sector encompass diverse factors.
The market value of Methenamine plummeted in the Saudi Arabian region to USD 903/ton FOB Al Jubail. The inventory level of the product rose with the traders as per market data in the middle east. Unfortunately, though, the industry has been down 8.6% over the past 12 months. As for the next few years, the earnings are forecasted to decline by 4.8 % per annum. Investors are most optimistic about the Energy Services industry, which is trading above its 3-year average PE ratio of 11.3x. Analysts are expecting annual earnings growth of 16.7%, which is lower than the prior year's growth of 67.7% per year. Investors are most pessimistic about the Oil and Gas industry, which is trading below its 3-year average of 23.5x. Analysts are most optimistic about the Energy Services industry, expecting annual earnings growth of 17% over the next five years. However, this is lower than its past earnings growth rate of 68% per year. In contrast, the Oil and Gas industry is expected to see its earnings decline by 4.9% per year over the next few years.
For the Quarter Ending March 2023
In the first quarter of 2023, the Methenamine market in the USA experienced a significant decline in prices. This was mainly attributed to the fall in prices of the feedstock Ammonia within the country. While the downstream Pharma sector showed moderate demand for the product, the supply was considerably high, leading to a drop in prices. Moreover, the ongoing bank crises in the USA had an adverse impact on the demand for Methenamine, further contributing to the price reduction. As consumer spending decreased and business investments saw a slump, the demand for the product was severely affected. Additionally, the credit crunch caused by the bank crisis made it difficult for businesses to access credit, resulting in a decrease in production and demand. Furthermore, the international market for Methenamine also saw a decrease in demand during this quarter. This was mainly due to the ample availability of the product in the global market. The combined impact of these factors led to a significant decline in the price of Methenamine in the USA.
The Q1 of 2023 witnessed a significant decline in Methenamine prices in the Asian market, primarily due to the reduced cost of its feedstock, Ammonia. The global market experienced an increase in the supply of Ammonia, which directly impacted the Methenamine prices in Asia. In China, the price of the product witnessed a decline of approximately 2.6% and 1.1% in January and February, respectively, and 0.7% in March. This can be attributed to the decrease in the cost of Ammonia, which witnessed a decline of around 0.7%, and 0.5% in January and February, respectively, and approximately 2.3% in March. Moreover, during the Q1 of 2023, the supply of Methenamine in the Chinese market increased while the demand remained moderate due to the uncertainty surrounding the Chinese Lunar New Year. As a result, the price of Methenamine at the end of this quarter was hovering around USD 1023/MT. This decline in prices had a significant impact on the Asian market and the global Methenamine industry.
The European market witnessed a significant drop in the price of Methenamine during the first quarter of 2023. The primary reason for this price decrease was the plummeting cost of feedstock Ammonia in the country. However, the downstream pharma sector saw moderate demand for the product. However, the purchasing activity in Europe was lower during this period due to increased inflation and a high cost of living. In Russia, the price of Methenamine saw a decline of around 2.6% in the first month of the quarter, and in the following two months, it dropped by around 0.1% and 0.5%, respectively. Overseas demand also decreased during this period as there was an abundance of the product in the global market. This market trend indicates a favorable time for buyers to enter the market and secure Methenamine at a lower price, making it a great opportunity for businesses looking to purchase this product.
In the fourth quarter of 2022, the price of Methenamine in the United States decreased in response to the falling cost of feedstock Ammonia in the market. Orders from the procurers remained moderate, and the pharma industry demand was stable due to ample stock availability of the product. The stagnant global market in Q4 continued to affect the domestic and international markets. According to the players in the market, the majority of the purchases were based on demand. The approaching holiday resulted in further declines in buyer demand and orders during the fourth quarter.
During the fourth quarter of 2022, there was a mixed-price trend for Methenamine in Asia. In November, the price of Methenamine rose due to the tight supply of the product from traders. The resurgence of COVID cases in China disrupted the supply chain, affected demand for export activities to overseas markets, and eventually led to an economic slowdown. To keep cases under control, the Chinese government implemented a Zero COVID policy, which slowed trading and reduced orders from end-use industries. The price of Methenamine decreased in December as a result of the steady supply from traders and adequate ground availability.
In Europe, the price of Methenamine decreased in the fourth quarter of 2022. The negative price trend of Methenamine was bolstered by the sharp decline of feedstock Ammonia in Europe. The repercussions of the Russia-Ukrainian war still persisted during this quarter, and the supply chain remained disturbed. Due to the slowdown in trading activities in importing countries like China, more products are left in Russia, and the merchants have stockpiled the product in the market. Because the product was readily available, there was less demand from the downstream pharmaceutical industry. Because there were no significant port congestions in Europe, product movement was smooth, and freight costs were reduced.