Asia Pacific region to dominate the Aniline market
- 24-May-2022 2:14 PM
- Journalist: Peter Schmidt
Aniline prices witnessed a marginal upward trend from the previous week in the Asian market. Increasing demand from the developing countries with fluctuating prices of crude and feedstock backed up the Aniline price drop. In addition, the downstream production activities have also played an essential role in the Aniline market.
The COVID restrictions in China have been easing since the first week of May, reviving the demand for Crude oil. Hence, crude prices rose marginally from the previous day. Therefore, the price fluctuation in upstream crude influenced the feedstock benzene and nitrobenzene, further inflicting the Aniline pricing. Besides, Aniline is the major derivative of Nitro Benzene, and the poor availability of Nitro Benzene resulted in the Aniline price hike.
Aniline's use in the production of downstream synthetic rubbers, paints, dyes, and pigments are highly required in the automotive and construction industries. Moreover, the growth of these industries in developing countries like India, South Korea, China, and Japan have increased the demand for Aniline. Thus, the prices of Aniline have witnessed an upward trend. One of the Indian buyers exclaimed that the tightened supply from China during the lockdown led the Aniline market to ride up.
The Asian market is considered to dominate the Aniline market due to the growing demand and healthy production rates. The downstream operating rates rose rapidly as the regional and international market demand surged, which positively impacted the Aniline market. As a result, the prices of Aniline increased by 0.9% with an increment of $15/tonne from May 22nd to May 23rd.
According to the ChemAnalyst database, "The Aniline market might witness a rise in the Asia-Pacific region in the coming weeks due to the continuous fluctuation in the upstream crude values. The Asia-Pacific region is likely to overpower the Aniline market further due to the increased demand from the regional and international markets. It is also anticipated that the downstream production activities could gain strength in the coming days as the lockdown in China might ease.”