In the first quarter of 2024, the global Aniline market saw a notable rise in prices, particularly in Belgium where prices reported at $1476.7/MT, marking an increase of 5.73% from the previous quarter. This upward trend was largely influenced by the strong demand from key sectors like Packaging and Construction, alongside rising feedstock prices. The resurgence of the Construction industry further fuelled Aniline demand, while increased Packaging needs during the Lunar New Year drove up production and distribution volumes. Supply chain disruptions, including factory closures and elevated freight rates, contributed to the upward pressure on prices, with a 2% rise in global capacity utilization compared to 2023 adding to the market strain.
In the second quarter of 2024, Aniline prices in Belgium increased to $1510/MT, reflecting a positive trend of 2.26% from Q1. This rise can be attributed to sustained demand from both the Packaging and Construction sectors. During this period, there was a 7.4% increase in container port volumes and a 10.4% rise in containership supply, which contributed to higher freight rates and exacerbated the bullish market trend. Congestion at major ports in Asia, equipment shortages, and rerouting issues further strained the supply chain, leading to significant price increases. The ongoing demand pressure and logistics challenges were key factors driving the higher prices in this quarter.
By early Q3 2024, Aniline prices had surged to $1630/MT in July, marking a substantial increase of 3.82% from June. This upward movement was driven by a combination of factors including robust global demand and persistent supply chain issues. Despite the overall high supply levels, tight market conditions, and ongoing freight disruptions kept the pressure on prices. Additionally, increasing costs of feedstock and higher production expenses contributed to the price hike. The global market experienced significant fluctuations due to continued congestion at major ports and a scarcity of shipping containers, which further impacted the pricing dynamics.
Looking ahead to Q4 2024, the Aniline market is expected to continue experiencing upward pressure on prices. The approaching festive season is likely to drive increased demand from the Packaging sector. Additionally, rising production costs due to increasing prices of key feedstocks such as benzene and ammonia will contribute to higher Aniline prices. Environmental regulations aimed at reducing emissions from chemical production processes could also impose stricter operational requirements, further pushing up production costs. As manufacturers ramp up production to meet the holiday demand, these factors will likely maintain the upward price trend seen in previous periods.