Aniline Prices in Europe Climb gradually Due to Importer Demand Spike
- 03-Apr-2024 2:01 PM
- Journalist: Xiang Hong
In March 2024, the Aniline price trend shifted in Europe, and prices witnessed an increase of 1% due to a surge in demand from Asian importers because of increased consumption rates from the dye and pigments industries. The demand for dyes and pigments surged from end users in the Asian market during the second half of the month for the spring festival. As per the sources, new orders improved in the European region from the last month.
However, the Eurozone's Manufacturing Purchasing Manager's Index declined again like the previous month in March 2024 and remained below 50, indicating a further slowdown in manufacturing sector activities. Initially, Aniline prices were decreasing as the market sentiments were underwhelming and inventories were amply available due to sluggish offtakes from the buyers. Aniline demand was low from the domestic downstream industries due to the hike in production costs, as the European energy industry is at odds over energy security amid the US LNG export pause. It raised the variable costs of production. Meanwhile, the cost support for Aniline was firm from feedstock Benzene as its production rates faced affliction due to an escalation in upstream Brent Crude Oil prices. Global crude oil stocks are currently experiencing low availability. At the same time, Brent Crude Oil prices increased due to the announcement of Crude Oil production cuts by OPEC+ and a decline in supplies in the international markets amid geopolitical tensions. It impacted the Aniline production rates and availability of supplies in the European region. On the other hand, the cost support declined on feedstock Nitric Acid amid ample availability of stocks and a decline in production costs due to a reduction in upstream Ammonia prices because of low consumption rates from fertilizer industries.
Additionally, the demand for Aniline was stable from downstream MDI industries to produce Polyurethane components. According to the ChemAnalyst data sources, the Aniline FD Hamburg quotations in Germany witnessed USD 1440/MT at the end of March 2024.
As per the estimation, the Aniline prices will increase further with the beginning of the second quarter of 2024. The key reason is the limited availability of feedstock Benzene supplies in the European market due to firm cost support from upstream Crude Oil. The further Crude Oil production cuts by OPEC+ and moderate availability of US stockpiles will impact the feedstock production rates, and supplies may remain stressed in the international market. At the same time, the increase in demand for Nitric Acid from agrochemical manufacturers will further impact the feedstock availability, and Aniline production costs will escalate.