Global Methyl Amine Prices Hold Steady Amid Stable Supply and Demand

In the global market, Methyl Amine prices remained stable in the first half of May. This stability is primarily due to the unchanged demand and supply ratio from suppliers. In Germany, feedstock Methanol prices have held steady, while Ammonia prices have continued to follow declining trend. The downstream market is experiencing lower demand and sales, resulting in no significant changes in inventory accumulation during this period. These factors have collectively contributed to the stability of Methyl Amine prices in the global market.

In the US market, Methyl Amine prices stabilized in the first half of May. The ISM Manufacturing PMI in the United States fell to 49.2 in April 2024 from 50.3 in the previous month, missing market expectations of stabilization. The Methyl Amine supply remained adequate. According to the Xeneta Shipping Index, US imports experienced a significant decline in April, with the XSI falling by 9.4% to 150.6 points. This marks a substantial 67% decrease compared to April last year, when it was at 451.5 points, and is the lowest point the index has reached since April 2021. Many US shippers operate on one-year contracts from May 1st to April 30th, leading to significant fluctuations in the index between April and May. In the US downstream market, demand for Methyl Amine from the Agrochemical sector has weakened, while there has been a slight uptick in the Personal Care sector. Nonetheless, the Pharmaceutical and Paints & Coatings sectors have continued to provide robust support in terms of demand.

The German Methylamine market has encountered recent challenges, notably reflected in the stabilization of Methanol prices and a 1.3% decline in Ammonia prices in April 2024. BASF's collaboration with International Process Plants (IPP) to market various production assets underscores the market's evolving dynamics. Despite this, BASF's Q1 sales volume dipped due to reduced demand and destocking efforts by suppliers. Producers have responded by scaling back purchasing activity to match lower production needs, resulting in decreased Methylamine inventories. This strategic adjustment aims to address the prevailing market conditions, ensuring a balanced supply-demand equilibrium amidst ongoing challenges.

According to ChemAnalyst, the price of Methyl Amine is anticipated to follow a bearish trend in the upcoming sessions. This expectation is primarily driven by the projected lower prices of Methanol and Ammonia in the near future. The ample availability of Methyl Amine inventories, along with diminished demand, is likely to lead to reduced production of Methyl Amine. These factors will play a crucial role in influencing the price of Methyl Amine in the upcoming sessions, contributing to the expected downward trend.