European Aniline Market has been Following a Downtrend: August 2022 Report
European Aniline Market has been Following a Downtrend: August 2022 Report

European Aniline Market has been Following a Downtrend: August 2022 Report

  • 24-Aug-2022 3:30 PM
  • Journalist: Harold Finch

Aniline market is showcasing a declining price trend in Europe due to the market's high inventories and the consumers' poor buying sentiments. The slumping upstream Crude prices are also influencing the commodity's values. Moreover, the sufficient availability of the product also resulted in a negative price trend.

The imposition of the worker's strike for eight days at Felixstowe, one of the largest container ports in the UK, resulted in the disrupting supply of the products. Thus, the labor shortage and the prolonged strike have affected the trading activities in the UK. Due to the hampered trade, the products are pilling up in the domestic market, worrying the traders. The weak purchasing from the domestic market further adds fuel to the already worsening situation. In addition, the UK's economy is almost dormant, and on the other hand, the tumbling trade has been prompting the manufacturers to decline the price to sell off the products.

Amidst the western sanctions, an increasing flow of Russian Crude oil to the Netherlands ushered in the sufficient availability of Crude in the domestic market. Since Aniline is one of the derivatives of Crude, the declining upstream Crude values have negatively impacted Aniline pricing. Also, the sluggish demand from the downstream derivative Methyl Diphenyl Diisocyanate manufacturers due to the declining production of the product is dragging down the Aniline pricing in the Netherlands. Furthermore, the terminal side requirement is also poor, directly affecting the Aniline values.

Besides, the impact of war followed by the Natural gas crisis and the heatwaves consistently affected the growth of European construction industries. Hence, the inactive production from the construction sector led to the weak requirement for Aniline in the regional markets. As a result, the price of the exported cargoes from Belgium dropped.

According to the analysis by the ChemAnalyst team, Aniline's market outlook is likely to increase in Europe due to the Natural gas crisis and the rising temperature. The Natural gas supply shortage might result in poor production from the manufacturers and insufficient product availability. The downstream derivatives demand may increase if the request from the consumers rises. However, the heatwaves may reduce the river water level, inflating the freight charges.

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