March Aniline Market Rises Sharply in China

March 31st News

I. Price Trends

According to the commodity market analysis system, the aniline market in China saw a significant increase in March. The price of aniline on March 1st was 9,145 CNY per ton, and by March 31st, it had risen to 11,362 CNY per ton, marking a 24.25% increase during the period and a 41.59% increase compared to the same period last year.

II. Analysis and Commentary

At the beginning of the month, tensions in the Middle East continued to escalate, driving international crude oil prices to remain at high levels and pushing up the prices of upstream raw materials such as pure benzene. As pure benzene is the primary feedstock for aniline, its price has recently surged significantly, causing aniline prices to rise accordingly. Coupled with planned maintenance at several major manufacturers and low inventory levels among companies, aniline prices have broken through the 10,000-yuan mark. Subsequently, the situation in the Middle East became volatile: after crude oil prices briefly surpassed $100 per barrel, they quickly retraced, leading to a rapid drop in the price of the raw material, pure benzene. Under the influence of rising costs, aniline prices began to decline. Starting in mid-March, influenced by both cost factors and supply-demand dynamics, aniline prices steadily rose again, reaching historically high levels. Downstream buyers entered the market according to their needs and gradually accepted the higher raw material prices; overall market transactions remained reasonably active.

Pure benzene: In March, the pure benzene market in China experienced sharp increases and decreases. Affected by geopolitical situations, prices deviated from the fundamentals, with market sentiment having a significant impact. Looking ahead, refineries are concerned about the stability of raw material supply and have entered a phase of defensive production cuts. Close attention is being paid to the situation in the Strait of Hormuz. In the short term, it is easier for the pure benzene market to rise than to fall.

III. Future Market Outlook

The current aniline market in China continues to strengthen due to cost support, coupled with maintenance shutdowns at major plants, leading to a tightening of supply. It is expected that the aniline market will continue to rise in the short term.