In the first half of 2024, Methenamine prices remained stable due to a combination of factors that ensured equilibrium in both supply and demand. Raw material costs, particularly for formaldehyde, remained consistent, as global supply chains continued to recover from previous disruptions. Demand in the pharmaceutical sector, particularly for urinary tract infection treatments, remained steady, while industrial applications, including disinfectants, showed no major fluctuations. Moreover, production efficiency improvements and stable energy prices helped keep manufacturing costs predictable. These factors combined to maintain stable prices throughout the period.
In Russia, Methenamine prices fell by 3% due to global political unrest and supply disruptions in the Middle East. These disruptions initially created raw material shortages, but as supply chains stabilized and demand weakened in certain sectors, prices dropped. This trend also led to a decrease in Methenamine prices across the APAC region, where supply conditions improved, and competition increased.
The 2.5% rebound in Methenamine prices in Russia was driven by ongoing political unrest, which has now become a persistent issue, disrupting both production and supply chains. Rising logistics costs further contributed to the price increase. As the APAC region remains a major importer of Methenamine, the price hike in Russia exerted upward pressure on prices across the region, influencing market conditions and increasing costs for buyers in key countries.
In Q3 of 2024, Methenamine prices rose by 4.5% in Russia, driven largely by increased demand from the pharmaceutical and industrial sectors. Simultaneously, the APAC region saw a significant price uptrend, fuelled by strong demand across pharmaceuticals, agriculture, and textiles. Regulatory reforms aimed at improving drug manufacturing processes boosted market sentiment, fostering collaborations between local and international companies. These efforts enhanced production efficiency, contributing to the overall price surge in both Russia and the APAC market.
In Q4 of 2024, Methenamine prices are expected to increase further compared to Q3, driven by a combination of factors. Continued strong demand from the pharmaceutical and industrial sectors, particularly in emerging markets, is likely to put upward pressure on prices. Additionally, seasonal fluctuations in raw material costs and potential disruptions in supply chains—stemming from geopolitical factors or logistical challenges—could exacerbate price increases.