For the Quarter Ending March 2023
North America
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.
APAC
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.
Europe
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.
For the Quarter Ending December 2022
North America
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.
APAC
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.
Europe
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.
The price trend of Methenamine observed mixed market sentiments in the North American region throughout the third quarter of 2022. The high demand from the downstream Pharma Industry led to an increase in the price of Methenamine in the region. The orders from purchasers were high due to increased consumer consumption, which supported the price movement of Methenamine. The supply chain was disrupted, and good deliveries to the destination were delayed due to the port being congested in the USA during the third quarter. As a ripple effect, the cost of Methenamine was settled at USD 1510/MT during the quarter ending in 2022.
The price of Methenamine observed mixed sentiments in the Asian market throughout the third quarter of 2022. During the first two months of the quarter, Methenamine witnessed a decline in the market due to short supply from Europe due to the supply chain disruption caused by an ongoing war between Russia and Ukraine. The demand from the Pharma industry was high, and insufficient supply of the product further increased the price of Methenamine. The last month observed a downward trajectory due to adequate inventory from the traders and stable supply to the market. The cheaper imported cargo from Russia dipped the price in the Chinese market. The average cost of Methenamine hovered around USD 1280/MT on an Ex-Shandong basis during the quarter ending of 2022.
During the third quarter of 2022, the Methenamine price witnessed mixed sentiments in Eurozone throughout the quarter. In the first two months of the third quarter, Methenamine's cost was upward due to high demand from downstream Pharma industries. Russia is one of the largest manufacturers of Methenamine globally. The war between Russia and Ukraine has limited the supply to the importing countries, and the supply chain was disrupted in the region. The production cost was high due to high natural gas prices. The last month of the quarter showed a decline in the market due to increased product availability. The manufacturers have quoted lower offer prices due to high availability in the region and moderate demand from the Pharma industry. The average price of Methenamine was settled at USD 1148/MT on a FOB Novosibirsk basis during the third quarter of 2022.
