Aniline Prices (Q1 2022)
In March 2022, in China, the price of aniline was 12700 RMB/MT. The growing demand for MDI in the coatings, adhesives and sealants, and polyurethane sectors was the primary driver of the market. The market's expansion was projected to be hampered by methemoglobin's negative health effects. During the first quarter of 2022, the market saw innovation in the manufacture of aniline from biomass as an opportunity.
Aniline Prices (Q4 2021)
The market in the Asia-Pacific region witnessed varying sentiments from different countries during the final quarter of 2021. The prices in China observed an upward trend in the quarter supported by the strong demand from downstream industries like synthetic dyes, agrochemicals, PU foams, etc. Moreover, strong prices of raw material benzene also aided the pricing trend of aniline. Thus, FOB Qingdao prices were assessed at 1655 USD/MT in December. In India, aniline market sentiments remained bearish, and a significant decrease was seen in its prices in the effect of ample supplies and lower buying momentum from downstream producers. Hence, Ex-Mumbai prices stumbled down to 2025.45 USD/MT from 2132.16 USD/MT in the timeframe of October to December.
The prices observed an upward trend across the European region during the fourth quarter of 2021. Strong values of feedstock benzene owing to the dynamic feedstock crude oil fundamentals supported the prices of aniline in this timeframe. Additionally, the price rise was also prompted by the strong demand from downstream MDI producers. Moreover, many local producers were forced to curtail their production levels due to acute energy crises that led to supply constraints and consequently fumed the prices of the chemical in this quarter.
During the final quarter of 2021 in the US, the prices observed mixed sentiments in the market as the demand outlook changed. In October, the price seemed bullish supported by firm demand amid tight supplies. The strong prices of feedstock benzene also increased its prices. The prices in November eased off relatively as freight costs reduced and availability rebounded. In December, however, the fundamentals of the chemical bounced back after receiving strong demand from downstream industries like MDI and due to the price volatility of crude oil.
Aniline Prices (Q1-Q3 2021)
The Asian market observed a stable demand from the domestic downstream sector in the first quarter of 2021, amidst supply constraints of feedstock chemicals. Prices increased aggressively in the Chinese market due to lower stock levels after the Lunar holidays and strong demand from downstream MDI and ink producers, which led to a rise in average FOB prices by 64% during the quarter and finally settled down at 2013.34 USD/MT till March-end. Similarly, in the Indian market, shortage of benzene and the lack of Chinese supply led the prices to rise by 5.8% from January to March, backed by enhanced crude oil values.
The Asian market witnessed dullness for aniline, where the demand fundamentals remained tight throughout the second quarter. Despite the continuous decrease 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 stock level. Traders were careful 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, producers ran their operations on 30% to 40% capacity during this timeframe. Therefore, after an effective decrease, prices of aniline hovered around 2113 USD/MT and 1640 USD/MT for India and China, respectively during May end.
During the third quarter, the prices of aniline soared in the Asian market owing to the inflation in the prices of feedstock benzene. Another factor that strongly supported the rise 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 led to the disturbance in the supply chain. Several countries that import aniline from China which includes India, the USA, Japan, Hungary, Belgium, etc. consequently suffered a proliferative trend in prices of aniline during the quarter. Ex Mumbai the prices of aniline observed an upsurge of 210.52 USD/MT from July to September, finally settling at 2194.99 USD/MT in September.
Strong demand from the downstream MDI producers amidst a critical shortage of feedstock chemicals, pushed the prices to follow an upward trend during Q1 2021. Insufficient supply from the US gulf coast to the global market forced European producers to increase their exports to other continents like Asia. The congestion of trade routes amid high freight costs supported the prices of aniline to rise effectively across the region.
Prices rose effectively in Europe during the second quarter of 2021, as the demand from the domestic and international market remained strong throughout this timeframe. Benzene influenced the prices of several downstream products including aniline, which also influenced the market of the US. However, global benzene supply constraint decreased the production of aniline across the region thus denting the overall market sentiments.
In Q3 2021, the market outlook of aniline observed an exponential rise in the pricing trend backed by the cut down in the manufacturing rates by several sectors due to the energy crisis. Besides, the demand for aniline remained strong from downstream sectors throughout this timeframe.
The North American market for the chemical suffered a rare cold snap that kneeled the production activities across Texas during the first quarter of 2021. Prolonged supply constraint 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 1400 USD/MT levels by March-end. Due to weather conditions, the majority of downstream MDI manufacturing plants were shut down during this time. Covestro announced force majeure on its MDI plant, similarly to other production units based in Florida, Louisiana and Mississippi, that reduced the demand of the chemical across the region and prevented the prices from further acceleration.
Prices remained dynamic during the second quarter of 2021, as the demand from downstream producers remained high in the first half of the quarter however, it gradually decreased in the other half. From the demand perspective, the automotive sector showcased strong sentiments during the quarter, which increased the demand for aniline derivatives in the USA. However, reduced production of automotive due to material supply constraint impacted its demand in the latter half. Thus, after gaining momentum since the previous quarter, the prices decreased in June and settled at 1350 USD/MT in Texas, USA. Additionally, enhanced production activities in the Gulf of the USA also effectively contributed to this decrease, as the supply of feedstock benzene enhanced effectively.
The prices continued to trace an upward trend owing to the scarcity of feedstock benzene during the third quarter of 2021. By the end of August, Ida hurricane landfall caused most of the manufacturing plants and petrochemical refineries to remain shut for almost two weeks because of power outages across the Gulf Coast of the USA. It not only affected the manufacturing process but also disrupted the supply chain which consequently led to the scarcity of the chemical as well as its downstream products. PBF Energy shut down its benzene facility while Rubican shut down its aniline and MDI manufacturing units in Louisiana as a repercussion of the hurricane. Furthermore, the high demand for aniline for its downstream MDI from end-use sectors including automotive, construction and consumer goods contributed to the surge in its pricing trend.
Aniline Prices Overview 2020
The demand in Asia surpassed its Q2 levels in the third quarter following a strong demand for methylene diphenyl diisocyanate (MDI) which served as the key contributing factor for enhanced margins. The Chinese aniline plant operating levels had been high, driven by increased buying sentiments since mid-June. Strong recovery in the PU foams sector which is used in the furniture and appliances was seen with many Southeast Asian manufacturers ramping up production feeling the festive push. In India, the demand from the pharmaceutical industry remained firm throughout the third quarter with several market players receiving import orders from the US.
The market remained pressured in the third quarter of 2020 as the second wave of COVID-19 hit the European Union. The demand for the chemical from the downstream sectors of automotive and construction remained muted as the economy continued to struggle with the economic downturn. The pricing curve remained firm as there were several reports of downstream MDI plant turnarounds in the region which further pressed the demand side. Production outages at several automotive factories also affected its consumption. The third quarter ended with the reports of Borsod Chem starting production at its new 200 KTPA aniline plant in Hungary by the same time in the following year.
Domestic demand observed a sharp rebound with a strong uptick in PU demand from the construction and automotive sectors which remained in the doldrums during the second quarter of 2020 as US continued the strictest coronavirus-related restrictions on economic activity. The end-use markets registered tightness in supply owing to logistic disruptions and plant closures in several provinces of the US caused by Hurricane Laura. Consumption by the producers of MDI showed a sharp recovery with better sales figures registered from sectors such as consumer durables and home appliances.
Procurement Resource provides latest prices of Aniline. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.
Procurement Resource provides prices of Aniline for several regions around the globe, which are as follows:
Aniline is a primary arylamine in which one of the benzene hydrogens is replaced by an amino functional group. It belongs to the anilines family and is a primary arylamine. It has a distinct odour and is clear to slightly yellow in colour. At room temperature, it does not readily evaporate. Aniline is mildly water soluble and readily blends with most organic solvents.
Aniline is produced by nitrating benzene using nitric and sulfuric acids to produce nitrobenzene, which is then hydrogenated at high temperatures in the presence of metal catalysts to produce aniline.
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The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).
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