Global Methyl Amine Market Strengthens in the Latter Half of February 2024 Amid Demand Disruption and Low Inventory Level

In the latter half of February, the global market for Methyl Amine witnessed surge in its pricing despite decreases in key feedstock prices such as Ammonia and Methanol. Mixed demand from downstream sectors, including Pharma, Agrochemical, Dyes, and Pigments, has influenced the Methyl Amine demand and subsequently impacted its market price for the respective period. The global aliphatic amines market heavily relies on China, where Lunar New Year holidays halted production and exports, causing a global imbalance in demand and supply dynamics.

In the US market, the price of Methyl Amine experienced a challenging turn in the second half of February. The general business activity index for manufacturing in Texas, as reported by the Federal Reserve Bank of Dallas, plunged by 17 points to 27.4 in January 2024. This marked its lowest level in eight months, indicating a deeper contraction in manufacturing activities. Despite these challenging economic conditions, there has been a positive demand for Methyl Amine from downstream markets, particularly in the pharmaceutical and personal care sectors. However, the Agrochemical sector is witnessing a lower performance. The mixed demand in the downstream market, combined with lower raw material prices and ample inventory availability, has influenced the price of Methyl Amine during this period.

In the Asian market, particularly China, Methyl Amine prices surged in the second half of February at 745 USD/MT FOB-Qingdao marking an incline of 2.75%. Methanol and Ammonia prices in the feedstock market declined. Following the end of the Lunar New Year, market traders became active, engaging in trading with significant manufacturing units. Demand for Methyl Amine from downstream sectors such as Agrochemicals and Pharmaceuticals saw notable growth. Increased procurement activities were observed as existing inventories were utilized during the Lunar New Year holidays.

In the European market, The Hamburg Commercial Bank reported promising signs of a resurgence in the German chemicals sector, highlighting a notable deceleration in the decline of received orders. Despite the Purchasing Managers' Index (PMI) lingering at a dismal level in December, there was a significant leap toward the expansion mark of 50, indicating a slight improvement in order intakes in the cyclical chemicals sector. These challenges include attacks by Houthi rebels on commercial vessels in the Red Sea, leading to longer routes around South Africa and substantial delivery delays, notably impacting voyages to Europe. In the European market, the demand for Methyl Amine from downstream sectors, including pharmaceuticals, personal care, dyes and pigments, and agrochemicals, experienced subdued demand. Chemical exporters noted signs of a turnaround in global manufacturing sector demand, partly attributed to customer restocking.

ChemAnalyst anticipates stable to bullish momentum in the upcoming sessions for the price of Methyl Amine. Despite a projected surge in Methyl Amine prices in the Asian market, major industries express optimism regarding positive momentum in demand. Anticipated increases in production and orders, driven by economic improvements, are expected to lead to positive outperformance in various downstream sectors, influencing the overall demand for Methyl Amine in the market. The confluence of favorable feedstock prices, economic improvement, and heightened production levels is expected to contribute to this anticipated momentum in the Methyl Amine market.