Aniline prices increase in the US amid reduced supplies from exporters

The Aniline price trend showcased an upward trajectory in the USA driven by a 2.7% surge in import quotations during the first half of April 2024.  The ocean freight rates decreased at the Baltimore port following the bridge collapse incident at the end of last month, impacting the availability of product supplies within the market. Meanwhile, the export rates from key Aniline exporters, China experienced a decline, and supplies were moderate from Asian exporters.

In the producing country, the cost support on production costs of Aniline rose from feedstock Benzene amid tight supplies and the recent increase in upstream OPEC+ Crude Oil prices amid speculations around Geopolitical tensions between Israel and Iran. An assault targeting an Islamic Republic diplomatic facility in Damascus, Syria, led to the fatalities of seven Iranian military personnel. Despite this event sparking a response, futures witnessed a minor downturn this week, attributed to the influence of inflation figures and US crude inventory levels on the market. Israel issued a cautionary message to Iran, signaling its readiness to retaliate should Tehran provoke an attack on Israel. Simultaneously, feedstock Nitric Acid prices remained stable during the week amid sluggish availability of upstream Ammonia due to diminished operational capacity hampered by firm energy costs due to the country's shift towards cleaner energy sources. The increase in energy costs additionally resulted in higher variable production expenses, prompting producers to reduce production rates due to the scarcity of feedstock supplies. Hence, Chinese exporters raised their Aniline quotations because of the stressed availability of supplies and firm offtakes from the Chinese Pharma sector for stocking purposes.

However, the Aniline demand from the domestic market was stable as the offtakes were moderately low from MDI manufacturers due to moderate consumption of Polyurethane materials. The US new home sales fell, leading to declining demand for Polyurethane materials in the construction sector. Furthermore, orders for Aniline stabilized from the Pharma sector amid anticipated price increases for Acetaminophen or Paracetamol in Q2 of 2024.

Conclusively, at the end of the first half of April 2024, Aniline CFR Texas quotations witnessed USD 1700/MT.

As per the estimation, the import prices of Aniline will increase in the US as the supply availability may remain moderate to low in the market because of increasing freight charges and air freight volumes amid the Red Sea crises. Simultaneously, the demand for Aniline would surge in the market during the mid-quarter. The Aniline offtakes may remain firm from the MDI industries due to the expected rise in demand for Polyurethane products in the construction sector.