For the Quarter Ending March 2024
North America
The first quarter of 2024 has been challenging for the Methyl Formate market, with prices experiencing a downward trend in the North America region. Several factors have influenced market prices, including a weakening global economy, abundant inventories, and slow demand recovery. These factors have raised concerns about shrinking profit margins and a sluggish purchasing trend.
In the USA, Methyl Formate prices have declined as a result of limited demand and ample supply. The downstream industries, such as the R-22 refrigerant and derivative Esters of Formic Acid sectors, have shown weak demand, leading to a surplus in inventory. This has resulted in manufacturers offering attractive deals to clear their storage units. The overall trend in Methyl Formate prices during the first quarter has been bearish, with prices decreasing by around 3% on a monthly basis.
This decline in prices can be attributed to the lackluster demand, limited imports from Europe, and low purchasing sentiment among suppliers. Looking at the quarter as a whole, there has been a negative correlation in price changes compared to the same quarter last year. However, there has been a slight improvement in prices compared to the previous quarter of 2024. In conclusion, the pricing environment for Methyl Formate in the North America region, particularly in the USA, has been negative in the first quarter of 2024. The market has been plagued by weak demand, ample supply, and declining prices. The quarter-ending price for Methyl Formate CFR-Texas in the USA is USD 1930/MT.
APAC
The pricing environment for Methyl Formate in the APAC region during Q1 2024 has been influenced by various factors, resulting in sluggish market conditions. Overall, the quarter has seen a downward trend in prices, with significant price changes observed in South Korea. In South Korea, the market experienced a bearish sentiment, with prices declining due to sluggish market purchases and lackluster demand. This decline was further exacerbated by a surplus of Methyl Formate inventory and reduced trading activity. The pricing environment in South Korea has been particularly volatile, with fluctuations in feedstock Methanol prices and limited purchasing activities contributing to the price changes. Throughout the quarter, the market has shown seasonality and correlation in price changes. The price of Methyl Formate in South Korea has decreased by a significant percentage from the same quarter last year. Additionally, there has been a decline in prices from the previous quarter in 2024. In terms of price comparison between the first and second half of the quarter, there is a notable difference, although specific percentage figures were not provided. As of the end of the quarter, the price of Methyl Formate in South Korea was recorded at USD 1062/MT FOB-Busan. This reflects the overall bearish sentiment and downward price trend observed during the quarter. Overall, the pricing environment for Methyl Formate in the APAC region during Q1 2024 has been characterized by a mix of negative and stable market conditions, with South Korea experiencing significant price changes and a bearish sentiment.
Europe
The European market for Methyl Formate in Q1 2024 has experienced a bearish pricing environment, with prices declining throughout the quarter. This downward trend can be attributed to several factors, including reduced downstream demand, sluggish trading activities, and ample product availability. The overall market sentiment has been cautious, with buyers exercising restraint in their purchasing approach. In Belgium, the pricing trend for Methyl Formate has followed the overall European market trend, with prices declining steadily. This decline is primarily driven by weak demand from downstream industries and a lack of supply pressure. Market participants have noticed a hesitancy among clients, likely due to political and economic uncertainty and increased financing expenses. Looking at the overall trend, there has been a consistent decrease in Methyl Formate prices in the European market compared to the same quarter last year. This decline can be attributed to the sluggish demand and ample product availability. Additionally, there has been a notable decrease in trading activities and limited interest in accumulation. In terms of seasonality, there is no specific mention of any seasonal variations in the pricing of Methyl Formate in the provided data. However, the overall trend suggests a bearish pricing environment, with prices declining steadily. In conclusion, the pricing environment for Methyl Formate in the European market, including Belgium, has been negative in Q1 2024. Prices have declined due to weak demand, limited trading activities, and ample product availability. The latest quarter-ending price for Methyl Formate FD-Antwerp in Belgium is USD 1630/MT.
For the Quarter Ending December 2023
North America
This quarter, the price of Methyl Formate in the North American market remains steady when compared with the previous quarter. Buyers didn't show much interest in bulk purchases of Methyl Formate this month, with prices plunged along with slow market offtakes. Enough supply was already available on the US market, and trading dynamics remain limited.
Trades of Methyl Formate from South Korea and Germany to the USA distressed due to gloomy market purchases and trading held on the immediate basis. In Dec, the price of Methyl Formate in the USA declined to USD 2000/ton CFR Texas. With limited product demand and bearish spot prices in the region, the Methyl Formate market remain affected with strong market fundamentals.
Exports from China and Germany to the USA also declined with revision in the price trend for the fresh stock. Continued bottlenecks in the Panama Canal vessel movement via the Cape Route impacted cross-basin trade flows and supply into Asia Pacific. Moreover, a surge in competitive power on the part of the local producer paved the way for higher import offers.
Asia Pacific
In Q4 2023, the price trend of Methyl Formate in APAC region witnessed a sluggish market trend in the wake of limited spot market purchases and lackluster trading fundamentals. The export of Methyl Formate from China to India and other Asian regions has witnessed a decrease due to reduced market trades and limited trading activities. Enterprises are grappling with elevated inventories as demand from downstream industries remains subdued. Negotiations for bulk purchases from suppliers are resulting in discounts for buyers engaging in large-volume transactions. In Dec 2023, the price of Methyl Formate in China declined to USD 1390/ton FOB Qingdao. With the market's downturn and decline in pre-trading activity, the downstream R-22 refrigerant and solvent industries have begun to progressively decline their demand for Methyl Formate. Slow demand for Methyl Formate resulted in a feeble market, and this month's market contraction further reduced the plant's operating rate. The supply of Methyl Formate remains sufficient and healthy export of Methyl Formate this quarter which helps the prices to decline further. Slack demand across domestic and import markets kept buying limited cargoes and outweighed supply limitations.
Europe
This quarter, the Methyl Formate market showcased a feeble price trend with limited product purchasing in the region. Trading of Methyl Formate from Germany to other European region traded moderately as per the downstream requirement. With the weak purchasing activities and limited trading fundamentals, the Methyl Formate price in Germany capped from further downward momentum. The product inventories remain adequate and market players remain reluctant to increase the prices. In Q4 2023, the price trend of Methyl Formate in Germany declined to USD 1605/ton FOB Hamburg. The demand for Methyl Formate from the downstream solvent and refrigerant industries has plunged and the market trades remain on the lower end. Market transactions declined this quarter due to weak netback and rising stocks among the manufacturing units. Low season has kicked off, and economic challenges continue to hamper the refrigerant industry, which prevents Methyl Formate hikes. Bidding for the new stocks remains limited and feeble trading from the end users forces the producers to decrease the cost. Trades of Methyl Formate from Germany to Belgium and the Netherlands slumped with weak momentum in trading activities.
For the Quarter Ending September 2023
North America
In Q3 2023, the market trading fundamentals of Methyl Formate in the USA witnessed a bearish price trend in the wake of inadequate purchases and limited firmer bids and offers among the enterprises. Additional purchases are being avoided, and the overall lack of demand allows buyers to negotiate feeble Methyl Formate pricing. The reduction in spot levels corresponds with producers' ongoing need to reduce stocks owing to increased storage costs and fluctuating feedstock Methanol prices. The market price of Methyl Formate fell, and there was enough supply to fulfill demand. Weak consumer demand resulted in cargo stocking in terms of stockpiles, causing supply and demand to be disturbed. Commodity imports from Germany and other European countries to the United States were also barely traded, with little demand for bulk purchases. However, towards the end of the quarter, the purchasing activities remained sluggish amid an increase in production rate among the significant manufacturing units, resulting in product oversupplies. Methyl Formate inventory contracted along with firmer trading stance in the Gulf Coast. Significant manufacturing units of Methyl Formate from Germany also increased the prices for the US market, and a surge in demand fundamentals from downstream ventures supported the price trend.
Asia Pacific
In July 2023, the purchasing activities in the region remain sluggish in the wake of limited buyer interest for bulk purchases. Domestic prices of Methyl Formate in China have stayed on a downtrend for this month on tepid demand and adequate availability. Most players expect the downtrend to continue due to limited demand for fresh stocks and limited market fundamentals. Trade flows of Methyl Formate remain limited, and the Asian market remains reluctant to make bulk purchases. In Aug 2023 and Sept 2023, demand exceeding the supply reversed the price dynamics, and an uptick in market trades increased the price trend. Despite the weak cost support from the upstream Methanol market, the surge in trading activities from the downstream enterprises remains the primary reason for the elevation in the price trend. In terms of inventory level, low existing stocks and keen interest among the buyers for bulk purchasing of Methyl Formate kept the market strong. With limited availability and a gradually diminishing inventory among firms, demand for Methyl Formate from the downstream Formic Acid and its derivative market remains strong.
Europe
In Q3 2023, the Methyl Formate market remains plunged with limited cost support from the downstream Formic Acid derivative market. Muted trade activity and no firmer bids and offers were delivered to purchasers by suppliers and distributors, limiting price increases this quarter. Methyl Formate prices continued to fall this month as feeble costs, the spillover effect from European markets, and rising stock pressure on export sellers supported markets. Germany's Methyl Formate markets have remained sluggish since May 2023 in light of some affected market trading fundamentals, including firm futures values. In Aug 2023, the price of Methyl Formate in Germany declined to USD 1630/ton FOB Hamburg with sluggish market purchases from the suppliers to buyers. A surge in price trend for Methyl Formate is observed during Sept 2023 in the wake of high trading fundamentals and a rebound in demand from the downstream solvent and Pharma sector. The downstream sector's demand for Methyl Formate has strengthened, accompanied by increased purchase activity among buyers. In terms of inventories, increased trade activity in the European area hit the market with low stockpiles of Methyl Formate.
For the Quarter Ending June 2023
North America
In Q2 2023, the price of Methyl Formate surged in April 2023 due to limited product availability and inflows of premium cargo from the overseas market to the US. Due to scarce supply in that region and low levels of product stocks on the market, which had an impact on the trading environment, methyl Formate prices rose across the USA. The primary manufacturers of Methyl Formate had low inventories and a limited supply, which boosted domestic market buying. Strong market sentiments and lively discussions of spot prices contributed to growth in the trading market. Methyl Formate imports were similarly strong, with a rise in the inflows of Methyl Formate cargoes from China and Germany. However, during May 2023 and June 2023, the trading fundamentals plunged in the wake of declining product demand and high inventory levels. The supply of Methyl Formate remains sufficient to fulfill the consumer’s requirement. With adequate supply, the demand for fresh stock was limited, and suppliers were purchasing the product on a need-to basis.
Asia Pacific
In Q2 2023, the Methyl Formate market started with higher trading activities and a surge in demand from the downstream Formic Acid derivative market. With bullish buying from the end user, the demand for Methyl Formate from the end user industries surged. As the Asian market showed more interest in purchasing activities, significant producers elevated the price trend. However, during May 2023 and June 2023, the demand for Methyl Formate plunged with feeble market fundamentals in the Asia Pacific region. The dilemma among sellers who aim to destock, with special offers for additional volumes being heard well below the spot market level. Suppliers who export are under more visible pressure as demand across global markets struggles to pick up. Adequate inflows of Methyl Formate in the Asian region resulted in feeble demand for fresh stocks. In June 2023, the price of Methyl Formate in China declined to USD 1714/ton FOB Qingdao. The demand for Methyl Formate from the downstream Formic Acid derivatives and adhesive industries ended on a weak note where the suppliers were hesitating to buy the product in bulk.
Europe
At the start of this quarter, major Methyl Formate providers raised their pricing as a result of high demand for new supplies and ongoing inventory utilization. Market settlements increased together with an increase in exports from Germany to the USA and other parts of Europe. Bullish demand and a surge in purchasing activity have increased trade, which has driven up prices. Methyl Formate demand soared in the European market due to strong formic acid derivative market usage. Moving forward, the purchasing activities from the downstream ventures lose their grip in the market with limited trades and abundant supplies in the market. The adequate supply of Methyl Formate plunged the price trend with satisfactory stocks and low product consumption from the downstream ventures supporting the market dynamics. In the European region, limited trading activities have been observed along with a slump in purchasing activities, and purchasers were relucent to buy fresh products. The low operating rate of the industry was observed with a revision in the price trend. In June 2023, the price of Methyl Formate in Germany declined to USD 1700/ton FOB Hamburg.
For the Quarter Ending March 2023
North America
In Q1 2023, the Methyl Formate market showcased a feeble trading activity with high product inventories when compared with the previous quarter. With the declining product demand and bearish market fundamentals from the buyer's end, the Methyl Formate prices slumped. In terms of inventories, the demand for fresh stocks weakened, and German producers offered the cargo at a discounted cost to the US market. In Feb 2023, the price of Methyl Formate in the USA declined to USD 2015/ton CFR Texas. The demand for Methyl Formate from the downstream Formic Acid derivative market ended up on a bearish note with a low operating rate among the enterprises as the requirement for fresh stocks declined.
Asia Pacific
This quarter, the Methyl Formate market in the Asia Pacific region started on a weaker note in the wake of declining market demand and on account of the Lunar New Year celebration in China. In Jan 2023, the price of Methyl Formate in China declined to USD 1895/ton FOB Qingdao. In Feb 2023 and March 2023, the price trend of Methyl Formate showcased an uptick in purchasing activities due to high market demand and healthy trading fundamentals. As the Formic Acid derivative's demand increases, and stocks are inadequate to provide buyer needs, Methyl Formate demand rose. Traders purchased large volumes at raised costs in the Asian market because of the probability that their next buy will increment.
Europe
In Q1 2023, the Methyl Formate market slides with low interest from the downstream ventures and weak spot trading activities. Downstream Formic Acid and its derivative market were largely suppressed by lackluster interest and low purchasing appetite. The end user industry adhesive manufacturing units worked on their plant cautiously according to the prerequisite from the buyers. Demand for Methyl Formate in the European market was likewise detailed feeble with a decline in the purchasing dynamics. In Germany, the price of Methyl Formate during Feb 2023 declined to USD 1590/ton FOB Hamburg. Exports from Germany to the USA and other European regions declined due to adequate supply and disruption in supply/demand fundamentals.
For the Quarter Ending December 2022
North America
In Q4 2022, the Methyl Formate market declined in the US on account of slow market offtakes and adequate product availability. With the weak demand for the product, major US suppliers limit the imports of Methyl Formate from Germany and China. Overall, the production cost of Methyl Formate declined with limited trade volume in the region. In response to weak consumer demand for Methyl Formate, downstream Formic Acid and its derivative markets declined. In Dec, the price of Methyl Formate in the US declined to USD 2281/ton CFR Texas. Among the suppliers, no firm offers were received, and the market continued to show little interest in trading Methyl Formate.
Asia Pacific region
In the Asia Pacific region, the Methyl Formate price showcased a bearish price trend this quarter in the wake of feeble market fundamentals and weak buying activities in the region. In Nov, the price of Methyl Formate in China slipped to USD 2018/ton FOB Qingdao. In terms of inventories, they increased among the manufacturing units and forced the producers to decrease their product rate. Exports of Methyl Formate from China to the global market declined due to adequate supply and slow offtakes of products. The demand for Methyl Formate has waned with oversupplies and weak market fundamentals. With declining global freight charges coupled with a slump in the domestic market, dynamics remained weak.
Europe
In Q4 2022, the price of Methyl Formate in Europe declined when compared with the previous quarter. Feeble trading exercises and adequate product accessibility joined a weak pattern in costs in the domestic market of Germany. Inventories were loaded up, and demand faded with limited trading activities, which explains the cautious decrease in market sentiments. In Nov, the price of Methyl Formate in Germany declined to USD 1829/ton FOB Hamburg. Amid declining costs and further disintegration demand, end producers have been running their plants at lower rates to avoid further stockpiling. The downstream Formic Acid and its derivative industry stay impacted, and end users are reluctant to purchase the item in bulk.
For the Quarter Ending September 2022
North America
In Q3, the Methyl Formate market in the USA elevated in succeeding months. Methyl Formate prices increased in the region due to higher upstream Methanol costs and healthy demand from downstream Formic Acid. Strong market sentiments and insufficient product availability resulted in such price dynamics. Total own-produced Methyl Formate sales among central manufacturing units declined due to limited supply and low inventories with elevated Natural Gas and crude oil prices. With rising inflation, there was a risk to Methanol derivative market to maintain revenue and increase stocks. In the US, the cost of Methyl Formate during Sept surged to USD 2441/ton.
Asia Pacific region
In the Asia Pacific, the price of Methyl Formate declined with weak futures and deterred market sentiments. In China, Methyl Formate prices showcased a downward trend due to muted demand from downstream markets and low purchasing esteem from the consumer’s end. The general price dynamics for the commodity across the regional market were dragged by falling economic value and weak offtakes. In China, the price of Methyl Formate during Sept declined to USD 2063/ton FOB Qingdao. The downstream Formic Acid market also suffered from low purchasing rates and low demand from the consumer. Due to low demand, suppliers were heard to revise their offers to maintain offtakes, while raw materials were also following the declining demand trend.
Europe
In Q3, the prices of Methyl Formate were on the upper end, with improved demand and a healthy downstream market. Some Methyl Formate producers had considered surcharges regarding higher energy costs and rising upstream values. Due to raw material shortage, the tight Methyl Formate market faced significant pushback from the buyers. The supply cut of Natural Gas from the Nord Stream 2 pipeline due to plant maintenance for the European region affected the market dynamics of Petrochemicals. Due to high demand and limited product availability, dealers were compelled to pay premium prices. In Germany, the cost of Methyl Formate in Sept surged to USD 1928/ton FOB Hamburg.
For the Quarter Ending June 2022
North America
In this quarter, the price of Methyl Formate surged in the market with strong market sentiments and surging product demand from downstream Formic Acid. In June, the price of Methyl Formate in the US surged to USD 2247/ton CFR Texas. The rising conflict between Russia and Ukraine and disruption of Natural Gas supply disrupt the market fundamentals. The production disruption induced by high utility and energy costs in the region and the cut in operating rate of the enterprises pressurized the producers to revise their prices for domestic and overseas suppliers. Imports from Germany and China also surged due to accelerating demand, but limited supply in the primary producers maintained the supply/demand gap. Logistics constraints and rising transportation costs in the region elevated the price trend.
Asia Pacific
Prices of Methyl Formate surged in this quarter compared to the previous one. In June, the price of Methyl Formate in India was USD 1624/ton Ex-Mumbai. Insufficient supply and accelerating demand forced the producers to revive the prices of Methyl Formate in the regional market. However, feedstock Methanol prices also slipped due to oversupplies of cargoes from Saudi Arabia and Iran, but healthy downstream Formic Acid demand kept the prices on the upper end. Towards the end of the quarter, the prices slipped as delivering requests for around 100,000 MT of methanol stacking from Saudi Arabia, Qatar, and Oman in June to China, Taiwan, and South Korea. Cost discussions were muffled in June as China was away for the Dragon Boat celebration, dropping the costs of Formic acid for its domestic market and exports to India.
Europe
As the prices of feedstock Methanol spiked, it caused a general expansion in bulk commodities. The rising Russia and Ukraine conflict also pushed the item's value pattern affecting the market sentiments. This, alongside significant producers' aggressive acquisition of a downstream product, ensured that organizations ran smoothly, prices rose, and Methyl Formate had an excellent start. Attributable to the shortage of raw material and confined production stayed the reason for flooding costs. Exports to the United States and other European districts flooded with cost amendments. In Q2 2022, Methyl Formate's price surged compared with the previous quarter. In June, the price of Methyl Formate in Germany surged to USD 1723/ton FOB Hamburg.
For the Quarter Ending March 2022
North America
In Q1 2022, the market pattern of Methyl Formate was seen to be expanding all through the quarter. In January, the cost of Methanol was on the upper end, which was upheld by the snugness of Natural Gas in the USA. Towards the end of the quarter, the expense of Methyl Formate reached new record highs following the lack of supply and a reduction in the plant operating rates by essential makers. Initiatives like the expansion of usage of Methane by Nation's administration to decrease ecological defilement accompanied by the rising values in feedstock Methanol levied a cost pressure on various downstream ventures. Costs of Methyl Formate in USA in the first quarter surged by 3.3% when compared with Q4 2021.
Asia Pacific
In Q1 2022, cost of Methyl Formate in China stayed on the upper end in the first half of the quarter with strong market sentiments and insufficient product accessibility. However, towards the final part of the quarter, the costs slipped with deterred storage choices; Methyl Formate stock remaining parts high in East because cargoes were majorly being utilized for position-taking in future markets and only occasionally being delivered to the players. In India, prices of Methyl Formate during January were observed to be USD 156/ton Ex-Mumbai. Bullish upstream Naphtha and Crude Oil prices and limited product availability led to consistent rise in Methyl Formate cost in India.
Europe
In the quarter ending March 2022, the cost of Methyl Formate surged on month-on-month basis. Seasonal demand development combined with higher scrap cost and concern that energy costs can rise further as Germany halted the certification process for Nord Stream 2 pipeline, kept Methyl Formate cost on the higher side. In January and February, Methyl Formate cost in Europe rose by nearly 250/MT. However, the cost slipped towards the last week of March as the demand from solvent and pharmaceuticals industries declined by a peripheral level which prompted a little dip in Methyl Formate costs. Feedstock Methanol prices were also recorded with high sentiments with supply shortage and bullish demand in the domestic market
For the Quarter Ending December 2021
North America
During Q4 2021, Methyl Formate prices continued follow the upper trend in line with the strong demand from the downstream sector. However, uncertainty loomed upon the demand pattern due to the fears of the omicron variant in several countries across the globe. Besides, soaring values of upstream Methanol also kept the prices of Methyl Formate high in USA. Feedstock Methanol prices have been on the higher side in Q4, where November prices were reported as high as USD 645 per MT Ex-Works Louisiana. Consistent demand for Methyl Formate in the agricultural industry also kept its values strong in the regional market.
Asia Pacific
In Asia Pacific region, Methyl Formate prices rose heavily in October, as the demand from regional market was deemed high amid lower stock availability. Downstream DMF manufacturers faced issues regarding procurement of raw material Methyl Formate as imports remained halted in effect of shipment delays and low production activities in China. However, by late Q4 Methyl Formate prices tumbled so sharp that, it almost reached normalcy, while traders speculated further ease in the prices trend. Change in global dynamics like improved output from China contributed to ease in prices of several commodities excluding Methyl Formate in India. Methyl Formate prices in India tumbled to USD 1545 per MT in December.
Europe
In Q4, Methyl Formate prices remained strong in early Q4 following the sturdy values of the feedstock Methanol in the regional market. However, in November prices of the product reached normalcy as the availability improved whereas the demand remained consistent. Surplus Methanol supply in the region amidst weak downstream market significantly impacted the prices of its derivatives. In December, the European contract prices of feedstock Methanol were assessed at USD 556 per MT.
For the Quarter Ending September 2021
North America
During Q3 2021, the market outlook of Methyl Formate experienced an upward trend in the North American region. Spike in the values of Methyl Formate was due to the surging feedstock Methanol prices supported by the occurrence of hurricane Ida which made landfall on 29th August in Louisiana, causing shutdown of several manufacturing plants. Methanex’s Geismar plant went offline for a significant timeframe in September and thus resulted in snug supply of feedstock during the quarter. However, demand remained firm throughout the quarter that also influenced the price trend in the North America region during third quarter.
Asia Pacific
The prices of Methyl Formate traced an upward trajectory in the Asia Pacific region during the third quarter backed by the constrained supplies and the improvement in offtakes from the downstream industries. The upward momentum of feedstock Methanol in Asia during this timeframe also contributed to the increment in the price of Methyl Formate across the region. In India, Methyl Formate prices reached a record high value on the back of consistently rising logistics cost and sturdy demand from the domestic market. Moreover, lower imports from China due to some operational shutdowns along with the congestion on several ports of China also sent ripples to the prices of Methyl Formate in India as it primarily imports Methyl Formate from China. The price of Methyl Formate in India witnessed a significant rise from USD 1230.62 per MT to USD 1303 per MT during the third quarter.
Europe
In Q3 of 2021, the market outlook of Methyl Formate appeared to be bullish in Europe in effect of the tight supplies and robust demand that kept the upward price trend. Factors such as shortage of raw materials due to lower imports from the US and restricted domestic production followed by energy crisis contributed to the hike in the pricing trend of Methyl Formate in this quarter. In addition, increasing prices of feedstock Methanol globally along with exorbitant freight charges further aided the inflation in the values of Methyl Formate. Besides, downstream chemicals prices were also affected by its shortage, like downstream DMF price was also reaching its peak during the meantime.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, Methyl Formate supplies eased in the North American region along with the surged production and better availability of the key feedstock Methanol. The restoration of the industrial infrastructure in the US Gulf coast restructured the dented supply chains in the regional market. Demand was persistent from the downstream manufacturers of Formic Acid derivatives, whereas offtakes were bolstered from the refrigerant sector with the arrival of peak summer season in North American. Taking cues from the feedstock Methanol pricing and high demand prospects, settlements for Methyl Formate maintained stability during Q2 2021.
Asia Pacific
In the Asia pacific region, supplies of the Methyl Formate surged during the second quarter of 2021, owing to the seasonal push from the demand side by the downstream refrigerant industries. Despite hovering uncertainties in the regional market, buyers in India were seen actively procuring bulk volumes to keep the inventories level balanced. Due to the rising inflation rates in the raw materials and high cost of key feedstock Methanol provided sufficient support to the prices of Methyl Formate in the Chinese market. FOB Shanghai Methyl Formate prices were settled at USD 1970 per tonne towards the end of the April month, whereas the pricing trend in India remained firm throughout the second quarter of 2021.
Europe
Overall, the Methyl Formate outlook in the European region improved comparatively from the previous quarter as the production activities in the NWE region recovered with better climatic conditions. Better cargo volumes from the US further supported the regional supplies. Performance of the downstream refrigerant industries remained robust. As a ripple effect of the high demand and high cost of feedstock Methanol, the prices of the Methyl Formate in the European market maintained firmness throughout the second quarter.
For the Quarter Ending March 2021
North America
Methyl Formate supplies in the region were severely hampered during Q1 2021, as the industrial infrastructure around the US Gulf Coast collapsed amid severe freeze weather conditions and supply chain disruptions, followed by production related constraints due to the lack of unavailability of the key feedstock chemicals. Exports to the other regions declined amid domestic shortages. Demand surged in the quarter, due to better offtakes from the pharmaceutical sector. Hiked prices of upstream products correspondingly surged the prices of Methyl Formate, which forced domestic players to be more flexible towards cheaper imports.
Asia-Pacific (APAC)
The supplies in the Asia Pacific region were balanced to tight during the first quarter of 2021, due to the constant offtakes from the downstream sector as the industrial and commercial activities improved in the region. However, some constraints were witnessed amid the shortfall in supplies from the US. Price segment fluctuated as it followed significant downtrend in the first half and hiked in the second half due to market tightness during the first quarter. Surge in Crude futures proportionally impacted the prices of Methyl Formate in the Indian market to USD 1144/ton levels in Q1.
Europe
Tight Methanol remained a key factor driving Methyl Formate prices during Q1. Methyl Formate supplies in the European region were balanced to tight during Q1 2021, as key producers in the region went for a turnaround, due to reduced feedstock supplies from the overseas. Formic acid supplies also remained deterred for a larger part of Q1. The demand was balanced as the consumption from the downstream sectors improved and arbitrage from the Asian region improved towards the end of the quarter.
For the Quarter Ending December 2020
North America
In the US, Methyl Formate supplies were impacted due to the aftermath of hurricane season in the US gulf. Major facilities were kept under maintenance led by shortage in the feedstock availability during the first half of Q4. During the second half, supplies improved as several plants started the production in lieu of demand uptick from the downstream pharmaceutical applications. The demand of Methyl Formate surged as major economies eased lockdown restrictions and exports, especially to the Asian region.
Asia-Pacific (APAC)
The price of Methyl Formate surged in the H1 of Q4, due to the strong values of upstream crude oil followed by the ramped up downstream activities in the Asian markets after a drastic fallout due to the COVID pandemic in the first half of the year. The later half of the quarter was affected by logistic disruptions and lack of manpower resulting in production cutbacks. A major Indian producer reported increased product enquiries from Vietnam. Post November, prices of Methyl Formate in India followed an uptrend on the back of strong values of upstream crude and restricted imports, maintaining an average around USD 1078/ton throughout the quarter.
Europe
The supplies of Methyl Formate in Europe were hit by a couple of factors. Upstream supplies were affected as Equinor, a key methanol producer in Norway reported a fire broke out. Imports stood majorly impacted due to constraints in availability of shipping containers and soaring freight rates. Supply crunch considerably effected the prices of Methyl Formate throughout the region, triggering a double-digit spike in December. The demand remained affected amidst fears of another lockdown imposed in various European countries and shortage in the supplies of feedstock from the Middle east.
