For the Quarter Ending June 2023

North America:

Amid recent advancements in U.S. West Texas Intermediate crude futures, the broader petroleum sector has encountered a prevailing gloomy sentiment amidst persistently lackluster global economic conditions. This pessimism has translated into subdued demand for Monoisopropylamine (MIPA) within the United States, leading to current market prices resting at USD 1487/ton FOB Houston. Although the pharmaceutical and textile sectors retain their importance in the national economy, investors exhibit caution concerning their long-term prospects due to the prevailing market dynamics. Consequently, both MIPA and its upstream derivative, Isopropyl Alcohol, have witnessed a significant surge in inventory levels due to restrained market absorption and tepid investment interest. Meanwhile, markets in Asia-Pacific and Europe mirror North America's feedstock Isopropyl Alcohol market, displaying comparably volatile pricing structures influenced by shifting demand trends and transportation bottlenecks stemming from port congestion and supply chain disruptions. While a slight recovery transpired in May 2023, the prevailing market prices remain relatively stagnant. The elevated inventory levels and supply chain complexities, coupled with fluctuations in the Propylene market, have notably impacted Isopropyl Alcohol prices in the North American region. Despite steady end-user demand, the supply in the region has continued to incrementally expand, resulting in heightened inventory levels. In response to this imbalance, producers temporarily halted operations to restore equilibrium to the supply-demand dynamics.

Asia:

Throughout the second quarter of 2023, the price of Monoisopropylamine (MIPA) witnessed a notable decline within the Asian market, with prices reaching USD 1,146/ton FOB Shanghai in China by June. Global ammonia feedstock prices also exhibited a decrease of approximately 50% compared to the previous year, evoking concerns among investors about the trajectory of the low-carbon market. Although comprehensive financial support initiatives aim to incentivize the development of low-carbon ammonia projects, weakened margins in the ammonia spot market imposed financial pressure on project developers. Weaker ammonia prices translated to lower year-on-year earnings for producers in the second quarter of 2023, prompting continued dedication to low-carbon ammonia initiatives. The accumulation of feed Ammonia and raw materials was attributed to reduced MIPA purchases for downstream applications, including dyes and pigments, pharmaceutical solvents, plasticizers, and adhesive components. Investor skepticism toward India's pharmaceutical sector contributed to its lackluster performance and constrained growth potential, consequently leading to declining sales and increasing overall losses.

Monoisopropylamine (MIPA) Prices: https://www.chemanalyst.com/Pricing-data/monoisopropylamine-mipa-1530

Europe:

Market prices for Monoisopropylamine (MIPA) underwent significant declines within the European market during the second quarter of 2023, reaching an average of USD 1,253/ton CFR Haydarpasa in Turkey in May, according to available trade data. Similarly, ammonia prices in Europe encountered further reductions in June due to weakened demand and declining natural gas prices within the same month, as indicated by trade data. Concurrently, Brent crude oil prices experienced a sharp downturn during this period, hitting a record low of USD 71.80 per barrel on June 12th, based on trading data. This decline in crude oil prices exerted a detrimental influence on the value of the feedstock isopropyl alcohol market in the region. While the refining and marketing industry didn't evade the effects of falling oil prices, analysts maintain a relative sense of optimism regarding its future earnings potential, anticipating a mere 20% drop over the next five years. However, the outlook for the MIPA sector remains grim, as downstream applications such as the pharmaceutical and textile industries continue to exhibit consistently low sales within the region, according to trade data.



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