Despite the consistent rise in crude prices, Aniline prices have been declining in China since the last week of February due to the low demand from end-use industries. Russia-Ukraine crisis has caused a sudden upsurge in the price of Crude oil which has consequently increased the price of its derivatives such as Benzene, Styrene, Ethylene and Propylene. Even though the price of Benzene has increased exponentially, prices of Aniline which is the derivative of Benzene has been dropping in China.

Aniline demand from dyes and rubber industry has been reducing since couple of weeks. The situation has negatively affected the prices of Aniline in China. Initially during the first week of February, China halted production in various industries due to the Spring Festival and winter Olympics. As manufacturers gradually increased their production rates post the Spring Festival, it led to the abundant production of products which resulted in sufficient amount of supply for upcoming months. The situation narrowed the demand and supply gap of Aniline in China, due to which its price fell. However, sudden upsurge in the Covid cases in China has compelled the government to implement lockdown in certain cities, affecting the operations is various plants.

As per ChemAnalyst, “Prices of Aniline in China are likely to rise in the coming weeks as the production may drop due to stringent containment measures in the country”. With expected drop in production, it is anticipated that the firm demand from some of the downstream segments could lead to the rise in its price. If the lockdown continues any further, supply issues to downstream industry can rise, which can cause Aniline prices to rise as well.”