Weak Pharma Demand Keeps Methyl Amines Prices Mixed; Agro Demand Expected to Rebound
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In the domestic market, Methyl Amines prices have decreased by ₹1/kg, despite an uptick in feedstock methanol prices. Current offers for Mono Methyl Amine (MMA) 40% stand at ₹52++/kg, Di Methyl Amine (DMA) at ₹59++/kg, on advance payment terms. Several traders observed that domestic manufacturers like Balaji Amines and Alkyl Amines offered more competitive prices compared to imports, making them a preferred choice for buyers.
Chemical Price
- In the domestic market, Methyl Amines prices have decreased by ₹1/kg, despite an uptick in feedstock methanol prices. Current offers for Mono Methyl Amine (MMA) 40% stand at ₹52++/kg, Di Methyl Amine (DMA) at ₹59++/kg, on advance payment terms.
- Several traders observed that domestic manufacturers like Balaji Amines and Alkyl Amines offered more competitive prices compared to imports, making them a preferred choice for buyers.
- The price drop in Methyl Amines is attributed to a slowdown in pharmaceutical production rates. Meanwhile, methanol prices remain bullish, with futures contracts showing a contango structure. On the other hand, ammonia spot market prices are lower, while futures contracts are priced higher.
Chemical Demand and Supply
- Supply from domestic manufacturers remains constrained, while importers are facing higher replacement costs due to increased feedstock prices and elevated freight costs. Market participants expect the Methyl Amines market to recover post-October, following the Diwali festival, as pharmaceutical and agrochemical production, especially in the West and North regions, has slowed this month.
- The Indian demand for Methyl Amines is approximately 5.50 kt per month. The major downstream consumers include the Pharmaceutical, Agrochemical, Dye & Pigment, Surfactant, and Rubber Chemical sectors.
- In the pharmaceutical sector, demand for Ephedrine and Theophylline is robust, driven by increased demand for respiratory drugs, which is expected to remain strong until February due to seasonal factors. Conversely, demand for Methamphetamine and Para Amino Phenol has dropped, as many Paracetamol manufacturers have reduced their production rates.
- The agrochemical sector is seeing strong demand for Glyphosate, which is expected to remain firm until April. However, demand for dyes has weakened, especially for Azo Dyes. The market for other agrochemicals like Carbaryl, Monocrotophos, and Fenitrothion remains healthy, according to market participants.
- The market anticipates a significant recovery in Methyl Amines demand, driven primarily by a rebound in pharmaceutical production after October and strong agrochemical demand. Additionally, higher replacement costs for feedstocks such as Methanol and Ammonia are expected to keep Methyl Amines prices elevated, according to some market sources.
Chemical News
- In the international market, upstream crude oil benchmark WTI prices increased by 0.24%, reaching $73.79/barrel, while Natural Gas prices decreased by 1.10% to $2.70/MMBtu. Feedstock prices for Methanol (CFR China, second half of October) were at $303/MT, and Ammonia (FOB Middle East, second half of October) prices were at $436/MT.
Expert Opinion
- Methyl Amines prices are expected to remain mixed in the coming week due to weak downstream demand from the pharmaceutical sector.
- However, the anticipated surge in agrochemical demand and higher feedstock prices (Methanol and Ammonia) are likely to support a rebound in Methyl Amines prices. Buyers are advised to plan their inventories accordingly.
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