Production Cut Among Enterprises Soars the Price of Alkyl Amine in Europe
- 12-Aug-2022 2:03 PM
- Journalist: Yage Kwon
Hamburg, Germany- With soaring Ammonia prices in Europe, central manufacturing units had a production cut for Amine. Germany’s BASF, the world’s largest chemical exporter, is cutting feedstock Ammonia operations due to accelerating Natural Gas prices. Pricing is heating up again in the fertilizer market due to the energy crunch in Europe, making Nitrogen manufacturing more costly.
When we throw the light on the methylamine market, surging raw material costs and strong demand from downstream pharma and paint industry accelerated the market fundamentals with price revision in the regional market. Significant manufacturing units of Methylamine in Germany and the Netherlands had also revised the prices for the overseas supplier with healthy demand from the end user.
Europe’s energy challenges are increasing, and oscillations in crude and Natural Gas prices are capping the sales and revenue among the ventures. The paint and coating industry is also growing in Europe, with accelerating utility costs resulting in high electricity prices and affected production rates.
Surging inflation and bullish demand caused a shortage of Alkyl amine, also used in agrochemicals and pharmaceutical products, placing further pressure on the cost of manufacturing essential products. Global supplies become highly tight because of the shortage of refinery capacities in the US and Europe caused by closers and uncertainty about rising raw material prices.
According to ChemAnalyst, the price of Alkyl Amine in Europe is expected to slow with fluctuations in feedstock Ammonia prices. Spot prices of Amine will also decrease, and a low buying rate will create oversupplies of products, impacting the prices. Trading activities will remain affected by low exports from China and India to other Asian suppliers. However, logistics constraints and surging transportation costs will support the price trend. Methanol prices will also decline further as producers try to shift from Natural gas to other conventional sources to maintain their sales and revenue.