Methyl Amine Market Takes a Hit: April H1 Sees Decline in Prices Amidst Demand Drop

The cost of Methyl Amine saw a decline in H1 April, primarily due to a drop in the price of its raw material, notably Ammonia, while Methanol prices increased. Expectations within the market suggest ongoing reduction of inventories, which is likely to limit new purchases this month. Moreover, decreased demand from downstream sectors has caused an imbalance between supply and demand, resulting in excess stockpiles. These pivotal elements have notably impacted the market demand for Methyl Amine.

In April H1, the European market experienced a notable drop in the price of Methyl Amine, indicating an excess of inventories compared to downstream demand. The continuous price surge witnessed until November hinted at destocking activities, ultimately leading to the decline in Methyl Amine prices. Despite an overall increase in the Consumer Price Index (CPI) in Germany, which rose to 118.60 points from 118.10 points in February 2024 according to the Federal Statistical Office, the manufacturing sector in Germany remained in contraction territory at the end of the first quarter. Although business outlook regarding future output improved, weak demand conditions persisted, resulting in further job losses in the manufacturing sector and a continued reduction in pre-production inventories.

Moderate demand for Methyl Amine is evident in the Pharma sector, as reflected in indices like DAX Pharmaceuticals & Healthcare (CXPPX). However, the Agrochemical sector is experiencing a downturn, leading to decreased performance in the Polymer & Rubber and Dyes & Pigments markets. This decline in the Agrochemical sector is consequently dampening the demand for Methyl Amine in the German market. Overall, although there is moderate demand from the Pharma sector, the reduced performance in the Agrochemical sector is affecting the overall demand for Methyl Amine. This underscores the interconnected nature of various industries within the chemical sector, where fluctuations in one sector can ripple through to others.

In April H1, the US market saw a decline in the price of Methyl Amine. While the pharmaceutical sector is experiencing robust demand and the Rubber and Polymer market is showing positive indicators, the Agrochemical sector is currently performing below expectations. Additionally, there is moderate demand observed from the Surfactant and Detergent market. According to the U.S. Bureau of Labor Statistics, the consumer price index (CPI) in the United States rose by 3.5% year-over-year to 312.332 points in March 2024. This increase follows a 3.2% rise in February, slightly surpassing the market consensus of a 3.4% advance.

According to ChemAnalyst's forecast, the price of Methyl Amine is anticipated to exhibit a bearish trend in the European market. This forecast is consistent with the overall demand from the downstream market, which is not significantly impacting the need for Methyl Amine. Additionally, ongoing destocking of inventories by suppliers is expected to contribute to the decrease in the price of Methyl Amine, given the ample inventories in the market. However, the US market is displaying signs of improvement in the downstream sector, which may influence the price of Methyl Amine to slightly increase in the near term.