Asian Alkyl Amine market witnessed a notable fall, contrasting with the trend in European market

By the last week of August, Alkyl Amine (Mono Methyl Amine) prices in the Asian market experienced a notable decline. This decrease in the Alkyl Amine (Mono Methyl Amine) price was primarily driven by reduced production from manufacturers, responding to weakened downstream demand amid ample inventories. The feedstock market remained stable with no significant price fluctuations, contributing to moderated Alkyl Amine (Mono Methyl Amine) pricing across the region. However, disruptions in the supply chain along European routes have driven up freight costs, leading suppliers to modestly increase their export prices to correct supply-demand imbalances. These combined factors impacted Alkyl Amine (Mono Methyl Amine) prices globally, illustrating the complex interaction between stable feedstock costs, changing demand, and logistical challenges.

In the German market, Alkyl Amine (Mono Methyl Amine) prices have risen this week. While Ammonia prices, a key feedstock, decreased by 0.92%, Methanol, another important feedstock, saw a 3.7% increase over the past two weeks. BASF, a major industry player, reported stronger earnings in its chemical businesses, despite notable declines in its Agricultural Solutions segment. The Chemicals segment achieved a 6.0% year-over-year sales increase, reaching €2.8 billion. Meanwhile, Germany's industrial sector continues to face challenges, with manufacturing production declining in July and no signs of recovery. The Ifo Business Climate indicator for Germany fell to 86.6 in August 2024, its lowest level since February, down from 87 in July, reflecting growing pessimism among companies and a worsened assessment of their current situation. The recent increase in Alkyl Amine (Mono Methyl Amine) prices is primarily due to a slight shortfall in inventory management among market participants.

Alkyl Amine (Mono Methyl Amine) prices in China trended downward in the final week of August. The market dynamics show that ample supplies of key feedstocks, Ammonia and Methanol, have helped lower production costs for manufacturers. Consequently, suppliers have adjusted their pricing strategies to stay competitive, leading to a decrease in Alkyl Amine (Mono Methyl Amine) prices. Additionally, short buildup activities in the market suggest a cautious stance by buyers, further contributing to the price decline. This blend of steady feedstock availability and reduced buying interest has pushed prices down, reflecting the current market conditions and supplier actions in the Chinese Alkyl Amine (Mono Methyl Amine) sector.

In the Indian market, Alkyl Amine (Mono Methyl Amine) prices saw a decline by the last week of August, even as Ammonia prices rose significantly due to extended buildup activities, while Methanol prices remained stable. Balaji Amines, a major producer, reported Revenue from Operations of ?393 crore for Q1FY25, a decrease from ?423 crore in Q4FY24, marking a 17.02% year-over-year drop in sales. The total volumes for Q1FY25 were 28,071 MT, with Amines contributing 7,401 MT and Amines Derivatives 8,299 MT. The company’s Methylamine project remains on schedule, with commissioning expected by December 2024. Despite a generally positive demand outlook, modest supplier actions have led to the decline in Alkyl Amine (Mono Methyl Amine) prices in the Indian market.

ChemAnalyst anticipates that Alkyl Amine (Mono Methyl Amine) prices in the Asian market are likely to trend downward in the upcoming sessions. This expected decline I Alkyl Amine (Mono Methyl Amine) price is primarily attributed to projected lower production volumes from manufacturers and subdued price movements, as market participants show reluctance to place large bids for bulk inventory accumulation. These factors combined are anticipated to shape Alkyl Amine (Mono Methyl Amine) pricing dynamics, potentially leading to further price drops as the market adjusts to reduced demand and cautious buying patterns.