Methylamine Prices Hold Steady Amid Rising Feedstock Costs and Proactive Supplier Strategies

In the global market, Methylamine prices remained stable through the last week of September, despite increasing feedstock costs, especially for Ammonia and Methanol. Proactive supplier actions, such as efficient inventory management, have been instrumental in maintaining this price stability. These strategies helped suppliers balance the impact of rising input costs while meeting consistent demand, contributing to the overall steady pricing in the Methylamine market.

In the US market, Methylamine prices remained flat during the last two weeks of September. Meanwhile in the feedstock market, ammonia prices surged by 5.2%, driven by long buildup activities from market participants. Additionally, the US Department of Energy has offered $1.6 billion in loan guarantees to Wabash Valley Resources for a $2.4 billion low-carbon ammonia plant in West Terre Haute, Indiana. This project will repurpose a former Duke Energy gasifier to convert petroleum coke into hydrogen feedstock, producing 500,000 metric tons of ammonia annually for fertilizer use. Despite the hurricane's impact on trading and supply chain activities, methanol prices remained stable at elevated levels, while demand for Methylamine was supported by strong performance in the Pharmaceutical, Rubber, and Personal Care sectors. Despite rising feedstock costs and increased demand, Methylamine prices have remained stable due to effective supply chain management and proactive supplier actions. By optimizing inventories and ensuring consistent availability of Methylamine, suppliers have mitigated cost pressures and maintained balance in the market.

In the European market, particularly in Germany, Methylamine prices remained stable over the last two weeks of September. Meanwhile, ammonia prices saw an 8.2% rise, driven by constrained supply of essential raw materials and heightened concerns about supply chain risks due to geopolitical tensions in the Middle East and along the Ukraine-Russia border, particularly near Kursk. Methanol prices also increased by 4.4%, primarily influenced by rising natural gas costs. However, Methylamine demand has been negatively impacted by weak downstream recovery, limiting its market momentum. Additionally, severe weather conditions, including heavy rainfall and potential snowfall through September 17, are expected to cause flooding and landslides in Bavaria and Saxony, further disrupting travel and utilities. These adverse weather events are compounding supply chain challenges for commodities like Methylamine, affecting overall pricing dynamics in the European market.

According to ChemAnalyst's forecasts, Methylamine prices are expected to follow a bullish trend in the coming sessions. This anticipated price increase of Methylamine is largely attributed to rising feedstock costs, particularly for ammonia and methanol. Furthermore, ongoing supply chain disruptions, exacerbated by recent severe weather events, are likely to create additional upward pressure on Methylamine prices.