N-Methyl Aniline Prices Stabilizes in September 2024 as Supply-Demand Gap Narrows

N-methyl aniline prices remained stagnant in Asia, by the end of September 2024, as demand from the downstream petroleum sector showed signs of recovery. N-methyl aniline price movement consolidated by the close of Q3 2024, with supply shortages and rising production costs outweighing weak demand fundamentals. On the upstream front, WTI crude oil futures in the U.S. increased by 1.8% to USD 71.16 per barrel, while Brent crude futures rose by 1.4% to USD 74.01 per barrel.

In Asia, N-methyl aniline prices are projected to remain stable in October 2024, with regional demand from the downstream textile and petroleum sectors remaining stagnant. In response, N-methyl aniline producers opted to curtail production rates at the end of Q3 to safeguard their margins. The downstream demand for N-methyl aniline in the textile industry encountered significant logistics challenges and trade barriers during September 2024.

From the supply chain perspective, the N-methyl aniline trade flows were impacted by the highly constrained space availability in the Asia-Pacific region during September 2024, particularly on outbound routes, as the industry faces challenges in meeting rising shipping demand. The limited availability of widebody aircraft has further tightened capacity, increasing competition for space and pushing up costs on key routes. With the upcoming holiday season expected to worsen the already strained capacity, shipping timelines are likely to face additional pressure further impacting the N-methyl aniline supply chain.

From the downstream demand outlook for N-methyl aniline in the petroleum industry in October 2024, Asian Refiners remained Unshaken by Geopolitical Tensions in the Middle East. Asian refiners remain largely unfazed by escalating geopolitical tensions in the Middle East, with key buyers of Persian Gulf sour crudes confident that trade flows between the region and Asia will not be disrupted. Despite rising hostilities between Iran and Israel, traders across Asia expressed confidence on October 2 that the conflict is unlikely to affect oil supplies, as both nations are expected to avoid jeopardizing East Asia's neutral stance in the conflict. As tensions in the Middle East continue, Asia's reliance on Persian Gulf crude supplies remains steady Thus, the N-methyl aniline demand fundamentals are likely to consolidate positively in the region as the region's refiners are confident that their supply security will not be severely impacted, even amid heightened geopolitical uncertainty.

In conclusion, N-methyl aniline manufacturers have reported a stable price trend for the time being, driven by the stagnancy in the downstream demand. As per ChemaAnalyst, N-methyl aniline prices are expected to consolidate within a narrow range in the Asian market during October 2024, due to slight positive changes in downstream petroleum industry demand and tightening supply conditions.