For the Quarter Ending June 2022
North American Methenamine prices remained buoyant throughout Q2 2022, owing to rising raw material costs amidst stable demand from the international market. The Houston-based market source revealed that the price of several pharma-related raw materials kept rising throughout the quarter, where the huge burden of inflationary pressure remained the key driving factor. Furthermore, sudden price increment in natural gas during the second half of the quarter, driven by the ongoing Russo-Ukrainian war, also affected the pricing dynamics of the product across the US market. In addition, demand dynamics for the product from the downstream pharma sector also supported the frequent offtakes from the domestic and international markets.
After witnessing a consistent hike for over a couple of months, Methenamine's price remained stable in the domestic market during June in Asia. As per the insights, market players remained anxious about demand fundamentals for the product from the Chinese market, as pandemic-related uncertainties did not vanish from the domestic market. Further, high raw material costs remained a prime factor in previous consistent price revisions in the country. In addition, rising inflationary pressure has also remained a matter of concern for key players, despite mild demand fundamentals from the domestic market.
Despite all the disruption across Europe's regional market, demand fundamentals for the product remained stable throughout the quarter. As per the market sources, being an important part of global supplies, Russian players kept their supplies stable for the global market while rising upstream costs kept on hampering overall pricing dynamics for the global market. 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, domestic players are also trying to improve their margins by exporting cargoes at higher prices.
For the Quarter Ending Quarter March 2022
High inflationary pressure has been a major concern for North American players since January 2022. Demand fundamentals for the product remained stable to firm, as the economic activities maintained overall firmness throughout the quarter. Since the Russia Ukraine war escalated, US and other major economies took harsh decisions on Russia, making it harder for the country to trade worldwide. These decisions affected global market dynamics and made several things expensive due to fuming raw material cost. Thus, under the influence of high raw material cost, Methenamine price rose consistently and stood around USD 1310/MT during February 2022 in the USA.
Mixed sentiments for Methenamine were observed in Asian market during Q1 2022. In the Chinese domestic market, the prices of Methenamine continued to rally upwards during the last two month of the quarter as the discussion for CIF was assessed at USD 995 per MT in the mid of February. These price hikes were supported by the regional rise in prices of upstream Ammonia, followed by the rising natural gas prices along with soaring container fees and sanctions against Belarus. The increased energy prices, along with the disrupted supply of raw materials and high logistical costs, were other factors that have contributed to the surge in Methenamine prices across Asia. As the markets in China were slowly gaining momentum after the Spring Festival holidays, the prices were expected to increase further in March, which was disrupted by sudden rise of another wave of the pandemic in the country.
The prices of Methenamine continued to hop upwards in Europe consecutively for the second week of February on the back of the spike in the feedstock prices. After witnessing a hike of 1.9%, the discussions for FOB Russia for Methenamine culminated at USD 938 per MT during the mid of February. The skyrocketing upstream Ammonia prices followed by high costs of Natural gas has exacerbated the price trend of Methenamine in the Russian domestic market. Country’s market sentiments were depressed under the influence of ongoing war, demand fundamentals for the product were stable across domestic market. Furthermore, taking pressure from hefty sanctions imposed by key economies, Hexamethylene Tetramine price maintained an over stability due to trade disturbance. Furthermore, Ruble has been falling consistently against the USD since the beginning of the war, which affected trade dynamics of the country.