For the Quarter Ending September 2024
North America
In Q3 2024, the Aniline price trend showcased bearish sentiments, and prices remained in a downward trajectory in the North American region. The decrease in Aniline prices was influenced by several key factors. Firstly, there was sluggish demand from MDI manufacturers due to reduced consumption of Polyurethane materials in the construction and manufacturing sectors. This led to lower offtakes and increased inventory levels in the market. Additionally, the cost support from feedstock Benzene decreased, affecting production costs.
The comparison between the first and second half of the quarter showed a 2% decrease, reflecting a consistent negative trend. Towards the end of Q3, improved availability of Crude Oil in the international market and increased refinery operations resulted in firm availability of feedstocks and negatively impacted the Aniline production costs. At the same time, the impact of Hurricane Helene resulted in reduced consumption from downstream industries and an increase in domestic stockpiles due to affected supply chain activities.
Conclusively, the market players negatively revised their quotations and overall, the Aniline prices witnessed a 4% decline in Q3 2024 from the previous quarter. The quarter-ending price for Aniline CFR Texas in the USA stood at USD 1500/MT, underscoring the prevailing bearish sentiment in the pricing environment.
APAC
In Q3 2024, the pricing landscape for Aniline in the APAC region has been characterized by a fluctuating pricing environment predominantly negative, characterized by a persistent decline in prices. Several critical factors have contributed to this downward trend, primarily influenced by reduced demand from MDI manufacturers amid sluggish consumption of Polyurethane materials in key downstream industries such as automotive and construction, where the consumption of Polyurethane materials has significantly decreased. This dampening of demand has been exacerbated by sluggish economic conditions, coupled with an oversupply of Aniline in the market, leading to elevated inventory levels. Additionally, the cost support from upstream feedstocks like Benzene has weakened, driven by fluctuations in crude oil prices and decreased demand from downstream value chains, further pressuring Aniline prices. However, towards the end of the quarter, Aniline prices witnessed an inconsiderable increase as the market's dynamics were complicated by supply chain disruptions amid seasonal factors like monsoons and typhoons and geopolitical tensions affecting crude oil imports, leading to variable feedstock availability. Conclusively, from the previous quarter in 2024, prices negligibly fell by notably by 11%, indicating a downward trend. The quarter concluded with Aniline FOB Qingdao prices at USD 1265/MT, underscoring the prevailing negative sentiment in the pricing environment.
Europe
The Aniline pricing in the European market has followed an upward trajectory throughout the third quarter of 2024. The market has been influenced by moderate demand from downstream industries, particularly from Pharma sector and MDI manufacturers, despite weak production rates, with a consistent decline in the Eurozone Manufacturing PMI Index. the pharmaceutical sector remained robust, adding upward pressure on prices. However, a downturn in the construction sector moderated demand from the MDI producers, averting sharper price hikes. Supply-side dynamics also played a role, as supply availability was moderately low during summer holidays creating imbalanced demand-supply dynamics, yet demand failed to match this increase, as The Eurozone's construction sector continued its downturn, significantly impacting Aniline consumption. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Additionally, concerns about a potential recession in the US affecting the international crude oil market and refinery operations have led to a shortage of feedstock supplies, impacting Aniline production rates. Towards the end of the quarter, the increased availability of feedstock Benzene supplies, driven by improved refinery operations and Crude Oil availability amid a resumption of Crude Oil supply from Libya in September 2024, negatively impacted the production costs. Conclusively, the quarter concluded with an Aniline FD Hamburg price at USD 1520/MT in Germany, after an overall 6% increase from the last quarter's prices, signifying a stable yet positive pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Aniline market experienced oscillations driven by several key factors. A primary influence was the consistent rise in feedstock Benzene prices, which were affected by variations in crude oil costs and strong demand from derivative industries. This increase in production costs, combined with steady demand from sectors such as pharmaceuticals and polyurethanes, exerted upward pressure on Aniline prices. Additionally, logistical challenges due to weather disruptions and tighter supply chains worsened the situation, making Aniline scarcer and more expensive toward the end of the quarter.
Focusing specifically on the USA, the market showcased pronounced volatility and significant price changes, reflecting an overall bullish trend. Aniline prices in the USA rose by 4% compared to the same quarter last year and by 1% from the previous quarter in 2024. This rise is indicative of seasonal trends where demand for MDI (Methylene Diphenyl Diisocyanate) and polyurethane products typically heightens. The price comparison between the first and second half of the quarter also revealed a 1% increase, aligning with the consistent demand and constrained supply environment.
The latest quarter-ending price for Aniline CFR Louisiana stood at USD 1730/MT, underscoring a positive pricing environment. The strategic interplay of feedstock cost dynamics, logistical constraints, and steady downstream demand has shaped a market characterized by rising prices. As such, the pricing environment for Aniline in Q2 2024 was decidedly positive, reflecting a robust market driven by fundamental supply-demand equilibrium and external economic factors.
APAC
Like the North American region, Aniline prices in the APAC region exhibited a seesawed movement in the second quarter of 2024 amid an interplay of supply and demand dynamics, moderate fluctuations in upstream feedstock costs, and consistent consumption from downstream sectors such as pharmaceuticals and polyurethanes. Despite various global economic factors, including OPEC+ crude oil production cuts and increased demand for fertilizer feedstocks, the Aniline market managed to navigate through without significant disruptions. The resilience in Aniline pricing underscored the capacity of the market to withstand external pressures and maintain equilibrium. Focusing on South Korea, which experienced the most notable price volatility, Aniline prices showed a complex but stable trend. Seasonality and consistent demand from the MDI sector played pivotal roles in this stability. The overall trends were shaped by balanced supply demand and moderate operational rates. Compared to the same quarter last year, there was a significant decrease of 6%, indicating a previous period of higher pricing. From Q1 2024, prices increased by 5%, reflecting a recovery phase. The closing price for Aniline CFR Busan at the end of Q2 2024 was USD 1550/MT, cementing a sentiment of stability within the South Korean market. This pricing environment has largely been stable, neither excessively positive nor negative, allowing for predictable market operations and strategic planning for stakeholders. This steadiness in Aniline prices is a testament to the market's robust mechanisms and ability to adapt to global economic fluctuations without undue volatility.
Europe
Like Asia and North America, the second quarter of 2024 has witnessed fluctuations in Aniline prices across Europe, driven primarily by significant macroeconomic factors and sector-specific variables. A constricted supply of feedstock Benzene, influenced by volatility in upstream Naphtha and Crude Oil prices, coupled with production constraints from labor shortages, has contributed to a challenging production environment. Concurrently, the demand from downstream industries, notably MDI manufacturers, experienced a seasonal dip, further exacerbating the pricing pressures. Amidst firm demand cycles from the Pharma sector, the overall market sentiment remained negative due to these supply-side constraints and moderate downstream offtakes. Focusing on Germany, which recorded the most considerable fluctuations, the pricing environment for Aniline showed a clear downtrend. The seasonality effect, particularly in the construction and automotive sectors, led to lower demand for Polyurethane materials, contributing to a 1% decrease from the previous quarter. Compared to the same period last year, there were no notable changes, indicating a stagnation in market recovery efforts. The second half of the quarter saw a marginally higher price in the latter half. The latest quarter-ending price for Aniline FD Hamburg was USD 1495/MT.
For the Quarter Ending March 2024
North America
The Aniline price trend exhibited a downward trajectory in the North American market during the first quarter of 2024. Initially, demand from buyers was low due to sluggish market activities during the New Year holidays. Following the holidays, stock availability was robust in the market, aided by improved supply rates from exporters, while offtakes remained moderate from buyers.
During the mid-quarter, Winter storms in the region negatively impacted operating rates in downstream industries, leading to decreased demand for Aniline in end-user sectors. Consequently, orders slightly declined from buyers amidst high freight costs on material imports.
Towards the quarter's end, Aniline prices continued to trend downward in the USA due to firm supplies and a decrease in ocean freight costs as container traffic bypassed the Suez Canal, stabilizing operations and reducing ocean rates on major trade routes. Meanwhile, offtakes were moderate from MDI industries and the Pharma sector. At the quarter's close, Aniline CFR Texas in the USA recorded USD 1655/MT.
APAC
In the first quarter of 2024, Aniline prices exhibited mixed trends in the APAC region. Initially, prices declined due to sluggish demand from downstream MDI manufacturers, attributed to decreased PU foam consumption in the manufacturing sector amidst a slowdown in the furniture market caused by rising raw material costs. Mid-quarter, some manufacturing units in China underwent maintenance shutdowns during the Lunar New Year holidays from February 2nd to February 18th, 2024. Towards the quarter's end, manufacturing activities improved after the holidays, yet offtakes remained sluggish in the Chinese market, leading to price declines. Conversely, prices increased in other regional markets due to limited stock availability and steady demand from buyers, resulting in higher market prices in importing countries. Additionally, by the end of Q1, there was a notable increase in orders from dye and pigment industries for end products during the spring festival celebration in countries like India. Aniline - FOB Qingdao China quotations settled at USD 1410/MT by the end of the first quarter of 2024.
Europe
In the European region, the Aniline market showcased mixed sentiments, and the price trend remain during the first quarter of 2024 when compared with the previous one. Initially, prices decreased due to increased inventory levels in the regional market as international importers faced low supplies due to supply chain disruptions and heightened ship traffic resulting from attacks on vessels in the Red Sea. During the mid-quarter, Aniline demand was low from the downstream industries due to the hike in production costs, as the European energy industry is at odds over energy security amid the US LNG export pause. Simultaneously, the textile industry slowed down in February 2024 due to increased raw material costs and abundant previous stock availability, which negatively impacted consumption from dye manufacturers, and producers again dropped their quotations. Towards the quarter's conclusion, Aniline prices trended upward as the regional manufacturing units grappled with disruptions to production schedules due to a shortage of skilled labour. It resulted in diminished output rates and escalated operational costs. Additionally, global air cargo demand experienced its third consecutive monthly increase in March, driven by the expanding e-commerce sector and disruptions in shipping routes, particularly in the Red Sea region, leading to fluctuations in air freight rates. Consequently, Aniline FD Hamburg quotations in Germany were assessed at USD 1440/MT at the end of the quarter.
For the Quarter Ending December 2023
North America
The Aniline price trend fluctuated during the fourth quarter of 2023. Initially, prices rose due to limited supplies from exporters amid weak production rates because of high-cost support on feedstock Benzene due to the escalation in upstream prices amid Crude Oil production cuts by OPEC+ and Russia. At the same time, Mississippi River water levels reduced noticeably, and logistics companies issued restrictions on shipments through the Mississippi River. It impacted the product supply rates in the regional market.
Meanwhile, consumption rates were low from the downstream MDI industries and dye manufacturers. Meanwhile, prices started declining amid a slight decline in product stocking practices from the regional buyers before the Thanksgiving holiday and Black Friday sales as domestic retailers were preparing for the holidays. It improved the market inventory levels, and prices witnessed an overall reduction of 11% from the previous quarter.
In the final month of the quarter, the Asian exporters reduced their quotations amid the destocking practices and excess availability of supplies in the Asian region. Simultaneously, the supply rates improved in the North American region towards the end of the quarter due to an increase in the water levels of the Panama Canal because of heavy rainfall at the end of the year. Conclusively, the import quotations of the product in the US Aniline CFR Louisiana hovered around USD 1791/MT at the end of Q4, 2023.
Asia
In the final month of the quarter, the Aniline price trend oscillated in the Asian region amid moderate production rates and availability of supplies in the regional market. At the beginning of the quarter, the Crude Oil production cuts by OPEC+ and Russia resulted in low feedstock availability, and production rates were affected in key Aniline producer China. Simultaneously, firm demand for feedstock Nitric Acid from agrochemical manufacturers for winter season application and stocking purposes raised the cost support. It stressed the availability of supplies in the regional market. Meanwhile, demand for Aniline remained moderate from buyers and importers. During the mid-quarter, the feedstock Benzene availability improved, and production rates escalated amid moderate consumption from downstream industries. Towards the end of the fourth quarter, the Aniline prices decreased significantly due to depressed demand and procurement activities from end-user industries. Simultaneously, destocking practices by regional producers further improved the product availability in the regional market, and Aniline prices witnessed a decrease of almost 8% from the previous quarter's prices. At the end of Q4 2023, Aniline CFR Busan prices hovered at USD 1580/MT.
Europe
Like the North American region, the Aniline prices shifted movement during the H2 of the final quarter of the year in the European region. In the beginning, prices increased as Aniline production rates were affected due to the low availability of feedstock Nitric Acid due to firm demand for Agrochemicals and simultaneous escalation in upstream Natural Gas prices amid high demand to reach storage capacity before winter. Meanwhile, during the mid-quarter, consumption rates declined from the downstream MDI industries as Covestro AG, in Brunsbüttel, Germany, with an MDI production capacity of 33333 TPM, went for Force Majeure in November 2023. Simultaneously, operating rates improved in the manufacturing units amid improved availability of feedstock Benzene supplies after the resumed refinery operations in the North American region and a decrease in demand for Nitric Acid from agrochemical manufacturers. The market inventory levels of Aniline improved, and consumption rates remained low till the end of the quarter. Towards the end of the quarter, the Wood Furniture market in the European region was negatively impacted due to the bursting of a housing bubble, causing a decline in the demand for wood furniture and a decline for Polyurethane foam from the manufacturing sector. The consumption of Polyurethane components diminished, and demand remained low from MDI industries. Meanwhile, orders were moderate from the Pharma and textile industries. Conclusively, Aniline prices witnessed a decrease of almost 6% from the previous quarter, and at the end of Q4, 2023, the Aniline FD Antwerp quotations in Belgium accessed at USD 1470/MT.
For the Quarter Ending September 2023
North America
The Aniline prices shifted movement in the North American region during the 3rd Quarter of 2023. Initially, prices fell amid low offtakes from downstream MDI producers due to sluggish manufacturing activities in the end-user Polyurethane segment. However, during the mid-quarter, the price trend fluctuated and showcased bullish movement as the freight rates were affected amid the decline in Mississippi and Ohio river water levels and delayed shipping routes activities through the Panama Canal. Meanwhile, the stressed inventory levels and the simultaneous decline in production rates by Asian exporters due to weak upstream Benzene availability because of upstream Crude Oil production cuts by OPEC+ negatively impacted the freight rates and availability of supplies in the regional market. At the same time, the occurrence of Hurricane Idalia on August 30, 2023, made landfall and caused a hindrance in operational and supply rates. Due to this, the Aniline prices surged noticeably during the final month of Q3. Towards the end of the quarter, dye makers' consumption rates were firm amid consistent offtakes from the textile sector. Conclusively, the Aniline prices in the USA witnessed USD 2115/MT at the end of Q3 of 2023.
Asia
In the Asian region, the Aniline prices showcased oscillated during the 3rd quarter of 2023. Initially, prices decreased due to the availability of previous stocks and simultaneous contraction in cost support on feedstock Nitric Acid due to a decline in upstream Ammonia prices. During the mid-quarter, the occurrence of regional storms and typhoons like Doksuri, Saola, and heavy rains stressed the production and supply rates. Simultaneously, the petrochemical manufacturers suppressed their feedstock Benzene supplies because of upstream Crude Oil production cuts by OPEC+. It reduced the Aniline's production rates and negatively impacted the availability of Aniline supplies in the regional market. Towards the end of the quarter, the cost support was firm on feedstock Nitric Acid due to high feedstock Ammonia prices amid increased demand from fertilizer and pesticide manufacturers. Consequently, Aniline prices remained firm and surged noticeably amid tightened supplies from suppliers. At the end of Q3, 2023, Aniline prices in South Korea and Taiwan hovered at USD 1865/MT and 1862/MT, respectively.
Europe
Like the North American region, the Aniline prices fluctuated in Europe during the Q3 of 2023. Initially, production costs were low due to the reduction in upstream Natural Gas costs from Dutch TTF. Simultaneously, the procurement activities declined from downstream MDI producers due to sluggish offtakes from Polyurethane buyers amid moderately low orders from the construction sector and electronic appliances manufacturers. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Consequently, the Eurozone manufacturing Purchasing Manager's Index dropped gradually during the 3rd quarter, indicating contractions in manufacturing sector activities. The price trend was revamped during the mid-quarter due to the regional summer holidays' effect on production and supply rates. The feedstock Nitric Acid prices escalated due to affected upstream Natural Gas supplies from Norwegian suppliers amid speculations around the Australian LNG facility strike. It suppressed the inventory levels towards the end of the quarter. Conclusively, Aniline prices in the Netherlands and Belgium hovered at USD 1642/MT and USD 1570/MT, respectively, at the end of the quarter.
For the Quarter Ending June 2023
North America
The Aniline prices shifted movement in the North American region during the Quarter 2 of 2023. Initially, the price trend was firm, and prices rose marginally amid increased cost support from feedstock Benzene and volatile upstream Crude Oil prices. Meanwhile, cost pressure was decreased during mid-Q2 due to the contraction in upstream prices and reduced consumption rates amid a drop in fuel demand with the temperature rise. Simultaneously, the feedstock Nitric Acid prices fell consistently due to contraction in upstream Ammonia prices and declined offtakes from fertilizer industries. It decreased the production cost of Aniline. During the mid-quarter, the price trend remained stable due to moderate supplies from the exporters and an increase in container freight costs. The offtakes remained sluggish from the downstream MDI producers due to sluggish inquiries for Polyurethane coatings from the construction sector during Q2 of 2023. Towards the end of the quarter, inventory levels rose amid weak consumption rates, and the exporters decreased their quotations amid destocking practices. At the end of the quarter, Aniline prices in the USA witnessed USD 1630/MT.
Asia
The Aniline price trend showcased bearish movement in the Asian region, and prices decreased throughout quarter 2 of 2023. The demand was low from regional and international importers because of inadequate consumption rates in downstream MDI industries due to the sluggish demand for PU foam in the manufacturing sector amid firm availability of supplies. Simultaneously, the consumption rates from Polyurethane elastomer and coating producers remained inadequate throughout the quarter due to the inactive construction sector. Meanwhile, the strengthening of the US Dollar and the weakening of the other currencies impacted the contracted product prices in the international markets. Meanwhile, Aniline prices decreased slightly towards the end of the quarter amid intensified buying activities before the Dragon boat festival in China. At the same time, the feedstock Benzene prices decreased, especially from the mid-quarter, due to a reduction in cost pressure from upstream amid the drop in fuel consumption with the temperature rise. Simultaneously, the decrease in feedstock Nitric Acid prices during Q2 due to the depressed demand from the fertilizers manufacturers reduced the production costs of Aniline. Conclusively, at the end of Q2, 2023, Aniline prices in China witnessed USD 1530/MT.
Europe
In the European region, the price trend of Aniline shifted movement during the Q2 of 2023. Initially, the price trend was firm, and prices rose marginally amid increased cost support from feedstock Benzene and volatile upstream Crude Oil prices. Meanwhile, cost pressure reduced during mid-Q2 due to the contraction in upstream Crude Oil because of reduced consumption rates from refineries and a drop in fuel demand with the temperature rise. Simultaneously, the consistent decreases in the feedstock Nitric Acid prices throughout the quarter amid sluggish consumption from fertilizer industries and depressed orders for agrochemicals in the agriculture sector reduced the production costs of Aniline. Furthermore, the reduction in Natural Gas prices decreased the variable costs during quarter 2 of 2023. Aniline demand remained moderately low from the downstream MDI producers due to feeble consumption rates of Polyurethane sealants and coatings in the construction and electronics industries. At the end of the quarter, the decline in the price intensified amid firm availability of supplies from Asia and reduced buying and manufacturing activities in the region. The hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made the buyers conscious while making purchases, and they avoided any unnecessary trading activities. Conclusively, the Aniline prices in the Netherlands and Belgium witnessed USD 1575/MT and USD 1539/MT, respectively, at the end of Q2.
For the Quarter Ending March 2023
North America
Aniline’s price trend remained firm during the 1st quarter of 2023, and prices rose marginally throughout the quarter. The orders were stable for MDI from Polyurethane industries due to sufficient availability of supplies amid moderate production rates and reduced activities in the manufacturing sector. At the same time, increases in Federal Reserve Interest rates throughout the quarter to curb rising inflation made the buyers conscious while making purchases. Due to an increase in upstream cost pressure amid volatile upstream costs, Aniline prices rose in the final month of Q1. At the end of the quarter, Aniline prices in the USA settled at USD 1765/MT.
Asia
Aniline price trend shifted sentiments in the Asian region during Q1 of 2023. Initially, prices witnessed a fall due to declined orders from MDI producers amid the new year holidays. Then the price trend shifted, and prices rose during the mid-quarter amid improved demand for MDI in the manufacturing sector due to increased demand for furniture in the retail sector. In the final month, the prices rose noticeably due to increased inquiries and market trading activities and stressed the availability of supplies due to plant shutdowns. At the same time, shifting upstream costs amid volatile crude oil prices raised the upstream cost pressure. At the end of the quarter, Aniline prices in China witnessed USD 1974/MT.
Europe
The Aniline price trend shifted sentiments during the Q1 of 2023. Initially, the prices continued to decline due to depressed orders from MDI producers due to sufficient availability of supplies. Due to the further depreciation in orders from the downstream amid weak demand from the manufacturing sector, Aniline prices plunged noticeably during the mid-quarter. Simultaneously, feedstock Nitric Acid prices fell throughout the quarter due to depressed demand from fertilizer producers and a significant reduction in the upstream Dutch TTF natural gas futures, which eased the cost support. However, towards the end of the quarter price trend rebounded, and prices rose due to volatile upstream costs and an increase in production costs. At the end of Q1, 2023, the Aniline price in the Netherlands settled at USD 1827/MT.
For the Quarter Ending December 2022
North America
Aniline price trend remained firm in the North American region during Q4 and shifted towards the end of the quarter. Initially, the product prices increased because of increased feedstock Benzene prices due to high upstream costs amid rising inflation and consistent demand and offtakes from the downstream MDI industries. The orders for the Polyurethane form were firm from the manufacturing sector during H1 of Q4 due to expected consumer demand from automotive manufacturers and furnishing mills because of the black Friday sale. However, in the final month of the quarter, the product prices decreased by exporters amid a decrease in the global freight charges, and Aniline prices in the USA settled at USD 1713/MT at the end of Q4.
Asia
In Asia, the price trend of Aniline fluctuated during Q4. At the beginning of quarter 4 of 2022, Aniline prices increased amid firm demand from importers due to affected supplies and increased upstream Crude oil and feedstock Benzene prices. However, in the mid-quarter, the prices started declining due to weak trading activities and an increase in domestic inventory levels in China because of disruption in the supply chain amid zero covid controls. At the end of Q4, product prices declined again amid destocking practices by the exporters amid the decline in global freight charges at the end of the year. At the end of Q4, Aniline prices in China settled at USD 1803/MT.
Europe
Aniline prices shifted during the Q4 of 2022 in the European region. Because of an explosion in the Beixi pipeline, production rates remained hampered amid input supply shortages, and production costs rose at the beginning of Q4. However, from the second month of the quarter, the product price trend shifted and decreased till the end of the quarter amid increased inventory levels and a reduction in input costs. A reduction in offtakes by downstream MDI producers on the back of reduced orders for PU from the household goods producers kept the prices low. At the end of the quarter, Aniline prices in Belgium settled at USD 2030/MT.
For The Quarter Ending September 2022
North America
Aniline price trend oscillated during the Q3 of 2022. The prices plunged from the beginning of the quarter until the mid-quarter because of reduced demand sentiments from the downstream MDI producers. At the same time, the production costs of Aniline decreased due to a decrease in feedstock Benzene prices due to the availability of excess supplies. However, the price trend revived in the final month towards the end of Q3, and prices increased due to increased production costs caused by disrupted feedstock supplies. Consequently, after witnessing a plunge of almost 8% against the previous quarter's prices, Aniline prices in the USA settled at USD 1502/MT at the end of Q3.
Asia
Aniline prices decreased during the 3rd quarter of 2022 due to weak demand sentiments from the downstream industries. Major MDI producers in China decreased their operational rates on Government's instructions due to constant heat waves in the summer. Additionally, the depreciation in the currency values of major producers like China due to the economic slowdown amid frequent lockdowns negatively impacted the product's prices. However, towards the end, the price trend revived in India on the back of increased product offtakes but remained the same in China. At the end of Q3, Aniline prices in China and India settled at USD 1753/MT and USD 2295/MT, respectively.
Europe
A shifting price trend of Aniline was observed in the European region during Q3 of 2022. The product prices decreased until the quarter's final month due to reduced offtakes due to no significant demand from downstream MDI producers. In the last month, the price trend shifted, and Aniline prices inclined upward on the back of decreased inventory levels caused by production curtailment amid high energy prices and rationing of input supplies by the exporters. Additionally, the high inflation depreciated the Euro values against the US Dollar, more significantly towards the end of the quarter. After witnessing a decrease of 6.6% against the Q2 values, Aniline's prices in Germany settled at USD 2104/MT.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, the price of Aniline in the US market showcased an oscillating price trend. In the early Q2, the cost of Aniline rose following the raw material price trend. The upstream Crude and the feedstock nitrobenzene prices were inflating, due to the limited availability of the product, triggering the Aniline price hike. Moreover, the domestic market demand was also increasing, ushering in the Aniline price rise. Whereas, in June, there was a drop in the Aniline pricing due to the weak purchasing activity from the downstream derivative Methylene Diphenyl Diisocyanate market. The high inventories in the previous month resulted in the ample availability of the product. Furthermore, the fear of recession took place, pulling down the upstream crude prices and negatively impacting the Aniline pricing.
APAC
Aniline market fell in India in the second quarter ending June 2022. The price drop was supported by the poor demand from the domestic market. The drop in imported cargoes and the weak buying sentiments also led to the Aniline price fall. Despite the western sanctions, India and China imported a large quantity of upstream Crude from Russia at a discounted price. Thus, the huge availability of Crude led to the price drop of feedstock Benzene and Nitrobenzene. Following the raw material prices, the Aniline price trend also showcased a downward movement in the Indian market. Moreover, the reduced requirement from the downstream derivative MDI manufacturers further decreased Aniline prices.
Europe
For the second quarter of 2022, the Aniline market witnessed a see-saw price trend in the European region. At the beginning of the second quarter, the surge in the raw material values influenced the price trend of Aniline in the German market. After the sanction on importing Russian Crude oil, there was a tight supply of the product in the domestic market, resulting in the inflated Crude prices. Moreover, the healthy buying sentiments in the domestic market also triggered the Aniline values. Later, in June Aniline market dropped slightly due to the increased production in the previous months leading to the piling up of the product forcing the manufacturers to revise their offers.
For the Quarter Ending March 2022
North America
Aniline market showcased an uptrend in North America during the first quarter of 2022. Soaring feedstocks and energy costs backed the quarterly growth of Aniline due to the Russian invasion of Ukraine. The economic growth rate influenced regional demand predictions in transportation and manufacturing, and crude oil market sentiments fluctuated dramatically in response to changes in economic fundamentals. Also, the growing freight charges influenced by the skyrocketing fuel costs and shipping halt to Russia have negatively impacted the Aniline values. As a result, in the USA, prices for Aniline settled at USD 1470 per MT CFR Texas in March.
Asia Pacific
During the first quarter of 2022, Aniline prices witnessed a drastic upward trend in India with a growth of 36.6%. Limited supply from China caused the price hike as the production remained halted on account of Lunar holidays and winter Olympics. Firm demand and shortage of supply from the regional market resulted in an upward trend in the Aniline market. In addition, increased COVID cases and lockdown implementation affected the trade, and the disruption caused by the geopolitical tension led to skyrocketing upstream crude and feedstock prices which influenced the price of Aniline. Thus, the Aniline price in India was observed at USD 2651 per MT CFR JNPT in March 2022.
Europe
In Europe, Aniline prices showcased an upward trajectory during the first quarter of 2022 due to strong market sentiments and insufficient supply of raw materials. The recovering market sentiments in Germany after the rising COVID cases and lockdown restrictions have also influenced the price hike. Prices rose due to increased consumption from the downstream sector, which includes drugs, dyes, and rubber chemicals. Aniline prices in Europe rose by nearly 4% in the month of March 2022.
For the Quarter Ending December 2021
North America
Aniline prices showcased mixed emotions in the US market during the fourth quarter of 2021 depending upon the demand outlook. Aniline prices appeared to bullish in October backed by the tight supplies and high demand. Moreover, strong values of upstream Benzene also supported the prices. In November, Aniline prices relatively eased off backed by reduction in freight charges coupled with the ample availability. However, Aniline fundamentals rebounded back again in December due to firm demand from downstream MDI manufacturers and volatility in crude oil values.
Asia
In Asia Pacific, Aniline market sentiments differ from country to country during the fourth quarter of 2021. In China, Aniline prices witnessed an overall increment in this quarter backed by the sturdy demand from the downstream industries including PU foams, Synthetic Dyes, Agrochemicals etc. Moreover, firm prices of raw material Benzene also aided pricing trend of Aniline. Thus, FOB Qingdao Aniline prices assessed at USD 1655/MT in December. In India, Aniline market sentiments remained bearish, and a substantial decline was seen in its prices in effect of ample supplies and lower buying momentum from downstream manufacturers. Hence, Ex-Mumbai Aniline prices tumbled down to USD 2025.45/MT from USD 2132.16/MT in the timeframe of October to December.
Europe
Aniline prices witnessed an upward trajectory across the European region during the fourth quarter of 2021. Firm values of feedstock Benzene owing to the volatile upstream crude oil fundamentals supported the prices of Aniline in this timeframe. Additionally, Aniline price rise was also prompted by the strong demand from downstream MDI manufacturers. Moreover, many local manufacturers were forced to curtail their production levels due to acute energy crises that led to supply shortage and consequently fumed Aniline prices in this quarter.
For the Quarter Ending September 2021
North America
In North America, Aniline prices continued to trace an upward trajectory owing to the scarcity of upstream feedstock Benzene during the Q3. In the end of August, Ida hurricane landfall made most of the manufacturing plants and petrochemical refineries shut for almost two weeks because of power outages across the Gulf Coast of the USA. It’s not only impacted the production process but also disrupted the supply chain which consequently led to the scarcity of Aniline and its downstream products. PBF Energy shut down its Benzene facility and Rubican shut down its Aniline and MDI production units in Louisiana as a repercussion of the hurricane. Furthermore, the high demand for Aniline for its downstream MDI from end-use industries including Automotive, Construction and Consumer goods contributed to the surge in the pricing trend of Aniline. However, it is anticipated that the resumption of the industrial activities with full efficacy in the upcoming quarter would soften the market sentiments of Aniline.
Asia
During the third quarter, Aniline prices soared in the Asian market owing to the inflation in the prices of upstream Benzene. Another factor that firmly supported the rise in Aniline prices was the congestion on several China ports due to the shutdown of Ningbo port which is the world’s third busiest port following the zero-tolerance coronavirus policy which resulted into the disturbance in the supply chain. There are several countries that import Aniline from China including India, the USA, Japan, Hungary, Belgium, etc. which consequently suffered a proliferative trajectory in prices of Aniline during the quarter. Ex Mumbai Aniline prices witnessed an upsurge of USD 210.52/tonne from July to September, finally settling at USD 2194.99 in September.
Europe
In Q3 2021, the market outlook of Aniline witnessed an exponential rise in the pricing trend of Aniline backed by the cut down in the production rates by several industries due to the energy crisis. Besides, the demand for Aniline remained firm from downstream industries throughout this timeframe. Value of Aniline also remained influenced by high upstream Benzene prices and the exorbitant rise in freight prices during the quarter.
For the Quarter Ending June 2021
North America
Prices of Aniline remained volatile during the second quarter of 2021, as the demand from downstream manufacturers remained high in the first half of the quarter however it gradually declined in the other half. On the demand perspective, automotive sector showcased firm sentiments during the quarter, which increased the demand for Aniline derivatives in USA. However reduced production of automotive due to material shortage affected the demand for Aniline in the later half. Thus, after gaining momentum since the previous quarter, prices of Aniline declined in the month of June and settled at USD 1350/MT in Texas, USA. In addition, improved production activities in the Gulf of USA also effectively contributed to this decline, as the supply of upstream Benzene improved effectively.
Asia
Asian market encountered dullness for Aniline, where the demand fundamentals remained tight throughout the quarter. Despite of continuous decline in prices of Aniline in China, traders remained stressed, as prices were still 120% high Y-o-Y basis. Some temporary shutdowns and plant resumptions like Dongying Huatai and Jinling Dongying suppressed the inventory level. Traders remained cautious about the sudden surge in pandemic cases in India, which dented the demand from China as well as from the domestic market. In India, under dull demand fundamentals, manufacturers ran their operations on 30% to 40% capacity during this timeframe. Therefore, after an effective decline, prices of Aniline hovered around USD 2113/Mt and USD 1640/MT for India and China, respectively during may ending.
Europe
Prices of Aniline rose effectively in Europe during the second quarter of 2021, as the demand from domestic and international market remained firm throughout this timeframe. High upstream Benzene prices influenced the prices of several downstream products including Aniline, which also influenced the market of USA. However, global benzene shortage decreased the production of Aniline across the region thus dented the overall market sentiments.
For the Quarter Ending March 2021
North America
The North American market suffered a rare cold snap that kneeled the production activities across Texas. Prolonged shortage of feedstock chemicals including Aniline since Q4 2020 got another boost after this extreme weather disruption, that supported its average prices and led it to rise by 8.75% within the quarter, taking it to USD 1400 per MT levels by March end. Most of the downstream MDI manufacturing plants were shut down during this period due to weather conditions, like Covestro announced force majeure on its MDI plant, similarly to other manufacturing unit based in Louisiana, Mississippi and Florida, that reduced the demand of Aniline across the region and prevented the prices from further acceleration.
Asia
The Asian market witnessed a stable demand from domestic downstream sector, amidst shortage of feedstock chemicals. Prices of Aniline increased aggressively in Chinese market due to lower inventory level after Lunar holidays and firm demand from downstream MDI and ink manufacturers, which led to rise in average FOB prices by 64% within the quarter and settled down at USD 2013.34 per MT till March end. Similarly, in the Indian market shortage of Benzene and lack of Chinese supply led the prices to rise by 5.8% from January to March, backed by improved crude oil values.
Europe
Firm demand from the downstream MDI manufacturers amidst critical shortage of the feedstock chemicals, pushed the prices to follow upward trend during Q1 2021. Insufficient supply from the US gulf coast to the global market forced European manufacturers to increase their exports to other continents like Asia. Although the trade route congestion and high freight cost supported the prices of Aniline to rise effectively across the region.
For the Quarter Ending September 2020
North America
Regional Aniline demand witnessed a sharp rebound with strong uptick in PU demand from the automotive and construction sector which remained in doldrums during the second quarter as the nation continued strictest coronavirus-related restrictions on economic activity. The end-use markets reported supply tightness due to logistic disruptions and plant closures in several US provinces caused by the Hurricane Laura. Aniline consumption by the manufacturers of methylene diphenyl diisocycanate (MDI) showed sharp recovery with better sales figures reported from sectors such as consumer durables and home appliances.
Asia
The Asia Pacific Aniline demand surpassed its Q2 quarter levels as strong demand for MDI served as the key contributing factor for improved margins. The Chinese Aniline plant operating levels have been high, driven by increased buying sentiments right from mid-June onwards, which however, is yet to regain strength up to the pre-pandemic levels. Strong recovery in PU foams sector which is used in the furniture and appliances is predicted with many Southeast Asian producers ramping up production feeling the festive push. Indian Aniline demand from the pharmaceutical industry remained high throughout the quarter with several market players receiving shipment orders from the US.
Europe
The Aniline market remained pressured in the third quarter as the second wave of COVID-19 wreaked havoc in the Europe Union. The demand for Aniline from the downstream automotive and construction sectors remained muted as the economy continued to grapple with the economic downturn. The pricing curve maintained grounds as there were several reports of downstream MDI plant turnarounds in the region, further pressing the demand side. Production outages at several automotive factories further crimped the Aniline consumption. The quarter ended with the news of Borsod Chem starting production at its new 200 KTPA aniline plant in Hungary during Q3 FY21.
