Methyl Amine Prices Remain Stable in Asia Due to Steady Supply and Inventory Management

As of the last week of July, the price of Methyl Amine in the Asian market has shown notable stability, largely influenced by balanced supply and demand dynamics. Despite a reduction in downstream market demand, suppliers have maintained ample inventory levels, preventing significant bidding activity. This equilibrium between supply and demand has resulted in stable Methyl Amine prices. The current market conditions highlight the role of effective inventory management and steady supply in sustaining price stability. This trend underscores the importance of balancing supply with demand fluctuations to maintain consistent pricing in the Methyl Amine market.

In the Chinese market, Methyl Amine prices have stabilized at 760 USD/MT FOB-Dalian. Ammonia prices have been falling continuously due to limited buildup activities by traders; however, Shandong Shuntian's liquid ammonia plant, with daily sales of 200 tons, has ensured a steady supply. Methanol prices have shown a consolidation trend, with a slight 0.59% decrease in import volumes in June, according to statistical reports. Sector-specific performance also affects Methyl Amine pricing; the agrochemical sector is experiencing a modest recovery, while the pharmaceutical sector remains moderate, as indicated by HS China A Pharmaceuticals (HSCAPI). These factors combined have contributed to the current stable price for Methyl Amine. The ongoing limited buildup activities in the ammonia market and stable methanol prices are likely to maintain this pricing stability in the near term, despite a slight uptick in demand from the agrochemical and pharmaceutical sectors.

In India, the price of Methyl Amine has remained stable at 41,000 INR/MT Ex-Mumbai. This stability is largely attributed to the supplier's strategic actions amid fluctuating feedstock prices. While ammonia has experienced a continuous increment, and methanol prices decline from upper levels, suppliers have managed to stabilize Methyl Amine pricing by adjusting their procurement strategies and inventory management. The agrochemical sector is showing signs of recovery, and the pharmaceutical industry continues to perform well, contributing to the stable demand for Methyl Amine. Additionally, the positive trends in the overseas market have further supported this stability. Suppliers have effectively balanced their supply chain operations to maintain consistent pricing despite feedstock variations and evolving market conditions.

ChemAnalyst's forecast suggests that the price of Methyl Amine is expected to remain stable with a tendency towards a slight bearish trend in the near future. This expected price movement is primarily attributed to the lower demand from the downstream market, which is not projected to see significant recovery in the near term, thereby limiting Methyl Amine consumption. Additionally, the price of ammonia, a crucial feedstock, is under pressure due to short buildup activities. Methanol prices are also consolidating, with no major increases anticipated. These factors are likely to lower the production costs for Methyl Amine, thereby applying downward pressure on its pricing in the near future.