November Aniline Market First Declines Then Rises in China

November 27 news

I. Price Trends

According to the commodity market analysis system, the Aniline market in China showed a firm increase in November. The price of Aniline was 7,995 CNY per ton on November 1st and 8,045 CNY per ton on November 27th, rising by 0.63% during the period, but falling by 12.77% compared to the same period last year.

II. Analysis and Commentary

In November, the aniline market in China turned from weak to strong, mainly supported by the cost and supply sides. At the beginning of the month, the price of raw material pure benzene slightly increased, and the main production areas of nitric acid, another raw material, had low operating rates, leading to a tight supply and rising prices of nitric acid. This situation restricted the operations of aniline producers that rely on external nitric acid, with the possibility of reduced loads later on. Boosted by the raw material side, aniline factories collectively raised their prices, and transactions became active, continuously pushing up the aniline prices. Mid-month, after the aniline prices rose, they stabilized, and aniline enterprises experienced smooth sales with not much inventory pressure. Towards the end of the month, the main production area in East China saw a tight supply, and under stable demand, aniline prices continued to rise. Downstream buyers purchased as needed, and transactions remained stable.

Pure benzene: In November, the pure benzene market in China fluctuated at a low level. The overall supply remained loose, with downstream rigid demand procurement being the main driver. Some loss-making products reduced production to maintain prices, but overall, demand support was limited. Although the pure benzene market experienced several rebounds during the month, these were constrained by demand, resulting in limited increases. Given the weak fundamentals, the pure benzene market was more prone to declines than gains.

III. Future Market Outlook

The current aniline market is supported by a strong supply side, while the raw material benzene remains weak. With stable demand and a balance of bullish and bearish factors, it is expected that the aniline market in China will continue to operate on the stronger side in the short term.