In August 2023, the Aniline price trend was revamped in the European region. The prime reason for the escalation in prices during the month is the rise in production costs. The escalation in feedstock Benzene prices during the first half of the month was due to a surge in demand from downstream buyers and a simultaneous increase in the upstream Crude Oil prices. Simultaneously, the rise in feedstock Nitric Acid prices amid moderate demand affected upstream Natural Gas supplies from Norwegian suppliers amid a rise in demand due to the Australian Liquified Natural Gas facility strike.

The availability of Aniline supplies was low in the market as producers reduced the production rates because of declined demand from buyers during previous months. Simultaneously, summer holidays in the region impacted the operational rates and supply chain activities. Consequently, supply rates decreased of Aniline in the Eurozone.

Concurrently, Orders for Aniline remained depressing from the downstream Methylene Diisocyanate manufacturers amid weak inquiries from the end-user Polyurethane segment. The consumption of Polyurethane foam and elastomers was low in the manufacturing sector. As per the sources, high energy prices and a hike in interest rates caused a decline in demand from buyers, which resulted in a slowdown in the Eurozone growth of the region. Like the past months, the Eurozone manufacturing Purchasing Manager’s Index decreased again during August 2023, indicating further contractions in manufacturing sector activities. Meanwhile, Aniline demand was moderate from the pharma sector and dye makers amid consistent inflation in the region.

Similarly, in the US market, the Aniline price trend showcased bullish movement during the H2 of the month, and prices surged as the availability of supplies was low and the exporters limited their exports due to a decline in their production rates. Meanwhile, the demand was moderately low from Methylene Diphenyl Diisocyanate and dye manufacturers due to weak demand outlook from the end-user buyers.

According to the ChemAnalyst data sources, the suppliers raised their quotations by almost 4%, and Aniline prices in Germany and the USA hovered at USD 1543/MT and USD 1632/MT, respectively.

As per the estimation, the Aniline prices in Europe will increase further with the beginning of quarter 4 of 2023. The reason is the expected improvement in the Aniline demand from the Methylene Diphenyl Diisocyanate producers because of the anticipated rise in Polyurethane foam orders from the manufacturing sector. In the US, the increase in furniture purchases during the Black Friday sale will increase activities in the retail market. At the same time, key feedstock Benzene prices will remain firm due to high upstream Crude Oil prices during winter. Simultaneously, the increase in input costs with the arrival of winter will raise the cost support on Aniline, and production costs will increase.