For the Quarter Ending March 2024
North America
In the first quarter of 2024, the pricing environment for Monoisopropylamine (MIPA) in the North American region was mixed, with some fluctuations observed in the USA market. The overall trend in prices for MIPA remained steady, with a slight decline of 2.46% compared to the previous quarter.
Several factors influenced market prices during this period. In the USA, the weak demand from the downstream Agrochemical and Pharmaceutical sectors, along with abundant supplies, led to a decrease in prices during January 2024. The decline in prices was further supported by lower operational costs due to the declining prices of Ammonia and Isopropyl Amine (IPA), the primary feedstock for MIPA production. However, the USA market did experience a slight increase in prices towards the end of the quarter. This was driven by higher demand from the downstream agrochemical and pharmaceutical sectors, as well as low inventory levels in storage facilities.
The latest quarter-ending price for MIPA in the USA market was USD 1580/MT, which represents a slight decline from the previous quarter. Overall, the pricing environment for MIPA in the North American region during the first quarter of 2024 can be characterized as stable with a bearish sentiment.
APAC
When compared with the previous quarter, the pricing environment for Monoisopropylamine (MIPA) in the APAC region was strong attributed by various factors, resulting in uptick in price trend. Overall, the market experienced a mix of positive and negative trends, with China being the most affected. In the APAC region, MIPA prices saw moderate fluctuations during the quarter. During January 2024, there were some bearish factors, such as low demand from the Agro market and high inventory levels in some regions resulting in a downtrend. In the upstream market, Ammonia and Isopropyl Amine (IPA) prices decreased, resulting in lower commodity production costs during January 2024. However, the supply of MIPA was generally low to moderate, leading to supply shortages and increased consumption of existing inventories during February due to the Lunar New Year. This, coupled with increased demand from the downstream agrochemical and pharmaceutical sectors, contributed to price increases. The overall pricing environment in Q1 2024 showed a bullish trend, with prices increasing in most markets.
Europe
During the first quarter of 2024, the Monoisopropylamine (MIPA) market in Turkey exhibited upward price trend, when compared with the previous quarter. January started on a bearish note with prices at USD 1260/MT, reflecting a decrease of 3.07% due to ample supply and sluggish demand from the agrochemical and pharmaceutical sectors. Operational costs were moderated by reduced prices of key feedstocks, such as Ammonia and Isopropyl Amine (IPA). In contrast, February saw a shift to bullish conditions by reduced trading activities due to the Spring Festival in China and adverse weather conditions, alongside increased demand from downstream sectors, which depleted inventories and drove prices upward despite the supply constraints. The market responded to a low supply-high demand scenario by stepping up production and trading activities, particularly as supply shortages prompted traders to adjust their strategies to cater to rising demands. Overall, the first quarter painted a picture of a resilient MIPA market in Turkey, responsive to both external economic influences and internal market dynamics, navigating through supply adjustments and demand shifts to stabilize and capitalize on emerging opportunities in the downstream sectors.
For the Quarter Ending December 2023
North America
The prices of mono-isopropyl amine (MIPA) showcased bullishness in the market price in the USA region, during the fourth quarter of 2023. The price of mono-isopropyl amine (MIPA) has significantly increased in the USA due to higher costs of feedstock Ammonia and Isopropyl Amine. Industrial reports suggest that the chemical sector is experiencing pricing pressure from the Chinese market, leading to reduced marginal profits.
Intense competition among various producers has driven an overall price surge in the domestic market. The availability of MIPA in the USA was at a low level across diverse sectors, including Agrochemical, Pharma, Personal Care, and other miscellaneous sectors. The accumulation of the inventories has been deeply affected by the pricing pressure and feedstock price fluctuations.
The MIPA demand in downstream sectors such as Pharma, Detergent, and Agrochemicals has seen a moderate to high surge. Traders were actively involved in pricing activities, signaling destocking in major industries. However, these industries were facing pressure to provide discounts due to a significant increase in domestic market prices, thereby impacting producer margins. Overall the prices of MIPA witnessed an incline of 3% in the fourth quarter as compared to the previous quarter of 2023.
APAC
During the fourth quarter of 2023, the prices of mono-isopropyl amine (MIPA) witnessed a bullish market trend in the APAC region. The cost of (MIPA) has notably increased in Indonesia, despite a significant decrease in the price of its raw material, Isopropyl Alcohol (IPA). This surge is mainly attributed to the favorable pricing trends of ammonia, another essential component in MIPA production. Indonesia, being a net importer of MIPA primarily from China in the Asian markets, has been affected by the rising prices in the Chinese market. The upswing in domestic industrial activities has prompted suppliers to commence the accumulation of inventories in response to the growing demand. The trading activities from the Chinese market to the Indonesian market were slightly enhanced to overcome the shortage of supplies in the storage units. Considering the market situation, the traders slightly raised their ex-quotations to boost their profit margins as the demand from the downstream sectors was observed to be rising. Therefore, it can be said that due to disruption in the equilibrium of supply and demand in the market, the prices of the commodity rose. An increase in the demand from the downstream agrochemical and pharmaceutical enterprises resulted in the faster consumption of the existing inventory levels which led to the faster depletion of the inventories. Therefore, the production rate for the commodity was enhanced along with the simultaneous restocking of MIPA.
Europe
The fourth quarter of 2023 was characterized by a bullish market for mono-isopropyl amine (MIPA) in the European region. The cost of (MIPA) has risen significantly in Turkey, even though the price of its raw material, Isopropyl Alcohol (IPA), has decreased notably. This surge was mainly due to favorable pricing trends in ammonia, a crucial component in MIPA production. The price increase was attributed to higher prices set by Asian market manufacturers, from whom Turkey imports MIPA. The sharp depletion in the Turkish currency in November 2023 has increased the import bills from major producers. The availability of MIPA in Turkey was at a moderate level across diverse sectors, including Agrochemical, Pharma, Personal Care, and other miscellaneous sectors. The accumulation of inventories in Turkey has been influenced by an increase in production costs and freight charges. Additionally, the annual inflation rate in Turkey, as reported by the Turkish Statistical Institute, rose to 62% in November 2023, surpassing the rate of 61.4% recorded in October. These factors collectively contribute to the dynamics of MIPA supply and pricing in the Turkish market. To address the shortage of supplies in storage units, trading activities from the Chinese market to the Turkish market experienced an increase. In response to this market condition, traders adjusted their ex-quotations, marginally raising prices to improve their profit margins. The disturbance in the equilibrium between supply and demand within the market contributed to an upward movement in the prices of the commodity
For the Quarter Ending September 2023
North America
In Q3 2023, the market trading fundamentals elevated, and the purchases surged among the distributors due to disruption in the supply/demand fundamentals. This quarter, the North American Monoisopropylamine market has experienced a measured increase in demand, driven not only by the downstream pharmaceuticals and Agrochemical sector but also by the considerable surge in feedstock Propylene prices followed by increased Naphtha prices. Furthermore, the deliberate reduction of oil supply by the organization of petroleum exporting countries has amplified the upward influence due to the rise of energy costs. In the USA, the price of Monoisopropylamine during August 2023 surged to USD 1499/ton FOB Houston. The market has been grappling with limited supply as the availability of the material remains constrained. This shortage in supply is primarily attributed to disruptions in the production process from the manufacturing region. As a result, market participants are faced with difficulties in meeting the demands of the downstream industries, leading to concerns about the availability and pricing of the product.
Asia Pacific
When compared with the previous quarter, the price of Monoisopropylamine in the Asia Pacific region witnessed a bullish price trajectory, contributed by strong upstream cost support, low-level product inventory, and a gradual increase in demand from the downstream enterprises. In the Chinese region, the Monoisopropylamine market showcased an incline price trend. Despite stability, downstream sectors such as Agriculture and Rubber industries. However, the rise in demand from the surfactants sector kept the market undersupplied; furthermore, the surge in feedstock Propylene and Ammonia prices has notably impacted production costs. The market remained grappling with shortages in inventories. The limited availability of stock is exerting pressure on meeting demand, while logistical hurdles are adding further layers of complexity. Consequently, businesses are facing obstacles in fulfilling orders promptly, potentially leading to delays that could impact the overall market dynamics. Demand from the downstream Surfactant industries remained high. At the same time, the demand remained moderate from the Agriculture and Rubber sector. Also, the higher upstream cost further motivated the market participants to keep an upward momentum.
Europe
In the European market, disruption in the supply/demand equilibrium forced the producers to raise their quotations for the domestic and overseas markets—an uptick in trading activities along with brisk demand for products from the downstream enterprises. In the Turkish market, MIPA inventory was depleted amid a low production rate from the local and regional producers and in view of recovery in purchasing activities, which has dented the margin of commodity producers who have curbed production running rate to 60-70%. The Turkish Monoisopropylamine market has been steadily rising, owing mostly to an increase in feedstock propylene and ammonia prices, which a rise in naphtha costs has fueled. Because of the increase in upstream material costs, overall production costs have increased, highlighting their impact on derivative market fundamentals. Furthermore, strong market fundamentals from the downstream pharmaceutical and surfactant sectors have significantly contributed to the product's market value. During Sept 2023, the price of Monoisopropylamine in Turkey surged to USD 1346/ton CFR Haydarpasa.
For the Quarter Ending June 2023
North America
Despite recent gains in U.S. West Texas Intermediate crude futures, investor sentiment towards the broader petroleum industry appears gloomy amidst persistently sluggish global economic conditions. This negativity has translated into subdued demand for MIPA within the United States, where market prices currently stand at USD 1487/ton FOB Houston. While the pharmaceutical and textile segments remain integral components of the nation's economy, investors appear wary about their long-term prospects given prevailing market dynamics. Consequently, inventory levels of both MIPA and its upstream derivative, Isopropyl Alcohol, have risen sharply owing to reduced market absorption and tepid investment appetite. Meanwhile, Asia-Pacific, and European markets share similarities with the North American feedstock Isopropyl Alcohol market through comparably volatile pricing structures influenced by shifting demand patterns and transportation bottlenecks occasioned by port congestion and supply chain disruptions. Although a marginal recovery occurred in May 2023, current market prices remain relatively flat overall. The inventory level of the product elevated and the supply chain situations were that the fluctuations within the Propylene market had a notable influence on the prices of isopropyl alcohol in the North American area. Despite stable demand from end-users, the supply in the region continued to grow gradually, resulting in higher inventory levels. To address this imbalance, producers temporarily ceased operations aiming to restore equilibrium in the supply-demand dynamics.
Asia
During the second quarter of 2023, the price of Monoisopropylamine (MIPA) experienced a significant decline in the Asian market, with values ranging at USD 1,146/ton FOB Shanghai in China during June. Global ammonia feedstock prices also decreased by approximately 50% compared to the previous year, raising concerns among investors regarding the future of the low-carbon market. Although substantial financial aid programs aim to encourage the development of low-carbon ammonia projects, weaker margins in the ammonia spot market exerted pressure on project developers' finances. As a result of weaker ammonia prices, producers reported lower year-on-year earnings for the second quarter of 2023 and remained committed to pursuing low-carbon ammonia initiatives. The accumulation of feed Ammonia and raw materials increased due to reduced purchasing of MIPA to produce downstream dyes and pigments, solvents for pharmaceuticals, plasticizers, and components used in adhesives. Investors appeared skeptical about the prospects of India's pharmaceutical sector, resulting in poor performance and limited growth potential. Consequently, sales generated by these companies continued to decrease, leading to rising losses overall.
Europe
Market prices for Monoisopropylamine (MIPA) dropped significantly in the European market during the second quarter of 2023, reaching an average of USD 1,253/ ton CFR Haydarpasa in Turkey during May based on available trade data. Similarly, ammonia prices in Europe faced further losses in June due to weak demand and falling natural gas prices during that same month, as indicated by trade data. Brent crude oil prices also underwent a sharp decline during this period, hitting a record low of USD 71.80 per barrel on June 12th, as per trading data. This downturn in crude oil prices negatively affected the value of the feedstock isopropyl alcohol market in the region. While the refining and marketing industry was not immune to the effects of falling oil prices, analysts remain relatively optimistic about its future earning potential, expecting them to drop by only 20% over the next five years. However, the outlook for the MIPA industry remains bleak, as sales from downstream applications such as the pharmaceutical and textile industries have been consistently low in the region, according to trade data.
