Aniline Market Prices Rose Sharply Last Week (Aug. 31-Sept. 4)

Analysis and Commentary

Last week, aniline prices edged up, supported by high price levels. With raw material costs remaining high, profit margins to downstream aniline items tightened, dampening purchasing interest and limiting buying largely to essential needs. Rising prices to the feedstock benzene drove up aniline prices. As of last Friday, mainstream domestic quotes to aniline stood at 13,500-13,600 RMB/ton.

From a cost perspective, the tight supply-demand stability in the benzene market is easing; while producers are ramping up operating rates, downstream operating rates—though recovering—remain constrained by end-market demand, resulting in a slow pace of capacity utilization increases. With absolute inventory levels still low and the volume of circulating supply yet to expand significantly, prices remain firm. Renewed geopolitical tensions in the short term have once again brought the supply-shortage narrative to the forefront, driving the price baseline upward.

Market outlook

Aniline prices have currently risen to high levels, and the market is absorbing these increases. Amidst high costs, downstream buying interest has waned, with purchasing driven primarily by essential needs. It is anticipated that further price gains in the short term will face significant resistance; close attention should be paid to developments regarding costs and demand.