Rising Feedstock Costs and Transportation Expenses Propel Methyl Amine Prices Upwards in Germany

Recent developments in the German chemical market indicate that the prices of Methyl Amine have increased due to rising feedstock costs such as Ammonia and Methanol. The market value of Anhydrous Ammonia remains at USD 371/ton Anhydrous Ammonia CFR Hamburg, and Methanol has risen to USD 380/ton FD Hamburg. Despite these shifts in the chemical market, the downstream pharmaceutical sector seems relatively stable. Over the past week, the overall industry has experienced a moderate upswing of 1.8%, with select companies demonstrating stronger performance, impacting the prices of Methyl Amine. Merck KGaA's stock price rose by 3.3% during this period, surpassing the broader market. Meanwhile, Dermapharm Holding encountered significant challenges, with its share price plunging by 8.4%, far exceeding its peers' negative performances. This poor showing contributed to the industry's marginal downturn of 3.7% over the preceding year. Nevertheless, Methyl Amine investors can find reassurance in the fact that analysts predict robust long-term prospects for the sector, projecting an average annual earnings growth rate of 16% across the next three to five years.

Although there was a notable decrease in the price of natural gas, it has transpired, as evidenced by trading activity on a Contract For Difference (CFD), which serves as a reference point for this commodity. Specifically, between the start of 2023 and present day, there was a drop of 1.34 USD/MMBtu or 32.67%. According to the trade data, Germany also expects gas prices to stay high for several years. In light of recent events, European natural gas futures have fallen to USD 37.96/ton per megawatt-hour due to several factors, including record-high gas storage levels, diminished demand, and the avoidance of worker strikes in Australia. These developments have offset the reduction in gas supplies from Norway caused by maintenance work at the country's Troll field, which slightly reduced the prices of Methyl Amine but did not have much impact. Europe's fuel reserves stand at approximately 90% capacity, surpassing the EU target date of November 1st for reaching such levels. Industrial activity in Germany has also entered into contraction for fourteen straight months, contributing to demand destruction throughout the continent. However, this did not impact the prices of Methyl Amine much in the regional market, and the demand from the downstream pharmaceuticals market usually influenced it.

The imported Methyl Amine market in Germany has recently undergone a price increase due to various factors. Firstly, the cost of raw materials in Russia, one of the primary exporters, has increased, leading to higher prices of Methyl Amine. Moreover, transportation fees for Methyl Amine have also risen, further exacerbating the situation. Despite these circumstances, the demand from the end-user fertilizer market saw a modest improvement during this period, fueled by the country's upcoming wheat and rye planting season. Nonetheless, unfavorable weather conditions in the region, characterized by low precipitation and high temperatures, prompted some customers to postpone their purchases of Methyl Amine. As a result, reduced exports combined with tightening demand-supply dynamics of Methyl Amine supported the prevailing price trend of the product.