Aniline Price Increase Marginally in Asian Market
- 16-Jun-2022 2:00 PM
- Journalist: Patrick Knight
The price of Aniline has witnessed a slight increase during the 2nd week of June in the Asian region. The slight upward trend is backed by the fluctuating raw material prices. The further disruption in the Chinese market caused by the lockdown also influenced the Aniline market.
Following the easing of lockdown restrictions in Shanghai, the sudden outbreak of COVID cases in the capital city, Beijing, prompted the government to impose a new lockdown. This new lockdown implementation started slowing down the local market activities. Moreover, the mass testing in Shanghai has been disrupting the trade. Hence, the slow working culture of the domestic market resulted in a slight upward movement in the Aniline price trend.
The inventory levels in the Chinese market remained normal with sufficient product availability. Besides, demand from the regional market remained stable. In contrast, the upstream Benzene prices are seen fluctuating due to the tight supply of the product from South Korea as a result of the trucker's strike. Hence, the China based traders were forced to maintain a positive price trend in order to protect their profit margins. Post witnessing a slight increment in the Chinese market, the FOB price of Aniline rose by 0.8% with an increment of $15 per tonne on June 10th.
India is the major importer of Aniline in the Asian region. The requirement for Aniline was not as expected in the Indian market, as the terminal end's consumption was found to be weak. In addition, the use of Aniline in the rubber and chemical industries stayed regular due to the decreased production activities, and the end users were found using the existing inventories across the domestic market. Thus, the Aniline price has been observing a slight growth in the Indian market.
According to the ChemAnalyst database, " Aniline prices are expected to showcase a rise in the coming weeks as the trade disruption might ease, resulting in higher export activities. The demand from the regional market might rise with the increase in downstream production. However, rising freight costs may also have a positive impact on Aniline pricing.”