Global Monoisopropylamine Market Faces Challenges Amidst Dwindling Purchases

During March 2024, the prices of Monoisopropylamine (MIPA) exhibited a downward trend. In the US market, MIPA prices have undergone by 0.6% from USD 1590/MT to USD 1580/MT, a substantial decrease during March 2024, in line with significant declines observed in Ammonia and Isopropyl Alcohol (IPA) prices in the feedstock market. The severe drought affecting the Panama Canal, a crucial trade route, has imposed limitations on daily crossings, potentially causing disruptions in global supply chains. However, there is optimism that with anticipated rains in May, the Panama Canal Authority plans to increase daily slots to align with average levels during the rainy season. This adjustment aims to alleviate constraints and restore smoother operations along this vital trade passage.

Across the APAC region, MIPA prices in the Chinese market have continued their downward trajectory, reflecting similar trends seen in key raw materials such as Ammonia and IPA over recent months. Despite this, positive signs are emerging in China's official NBS Manufacturing PMI, which rose to 50.8 in March 2024, marking the first growth in six months and the strongest in a year. This improvement underscores Beijing's efforts to stimulate economic growth, with notable increases observed in output, new orders, and foreign sales. However, cautious destocking of inventories persists among market participants due to lower orders from importing countries, leading to reduced plant capacities. In Indonesia, MIPA prices have similarly continued their downward trend in March. Given Indonesia's heavy reliance on the agricultural industry, recent decreases in GDP from Agriculture suggest potential challenges in the broader economic landscape. Nevertheless, decreased freight charges across various routes have provided a positive impact on the supply chain.

Meanwhile, in the Turkish market, MIPA prices have also experienced a downward trend in March, aligning with previous months' trajectories. Despite this, the textile and raw materials sector in Turkey has demonstrated resilience and growth. The supply chain situation for MIPA appears moderate, with shipments adequately meeting downstream demand, primarily from the pharmaceutical industry. This has ensured a steady flow of the product to meet market requirements. However, the inventory level of MIPA has seen an increase due to ample availability of the product among traders and merchants, contributing to market stability and favourable conditions for procurement.

According to ChemAnalyst’s, global prices of MIPA are anticipated to rise due to several factors. Firstly, the increase in prices of primary feedstocks such as Ammonia and Isopropyl Alcohol (IPA), which are essential to produce MIPA, is expected to contribute to the overall price incline. Additionally, there is an anticipation of lower inventory availabilities in the market, which could further push prices upwards. Moreover, expectations of increased demand from downstream industries including agrochemicals, pharmaceuticals, rubber, polymers, and other miscellaneous sectors are also driving the price projections higher. This surge in demand for MIPA from various sectors is likely to exert pressure on prices, especially considering the potential recovery in the overall agrochemical sector. In summary, the combination of rising feedstock prices, anticipated inventory constraints, and heightened demand across multiple industries is expected to drive global prices of MIPA upward in the forthcoming weeks.