Aniline demand moderate in New Delhi despite price decline – 28 Jan 2014

The price trend for Aniline has been erratic in the New Delhi market over the past few months because of variable imports and the dollar-rupee fluctuations. This week, the price of Aniline fell by Rs. 5 per kg to current trading levels of Rs. 155 per kg. Indianpetrochem spoke to some traders in New Delhi and examined the price trend for the chemical over the past six months.

Comparative analysis of market price trend for Aniline over the last six month reveals that, the prices have peaked at levels of Rs. 165 per kg  and bottomed out at levels of Rs. 152 per kg in New Delhi.

In the month of December, the price of the chemical was bullish,  where the spread was in the range of Rs.152- 165 per kg in the national capital. The prices were initially at lows of around Rs. 152 per kg in the first week of December, thereafter, the prices escalated by Rs. 6 per kg in the second week. The prices peaked out at the range of Rs. 165 per kg by the third week of December; this can be conferred to the the support levels for Aniline in a bullish market, based on market sources.

Indianpetrochem spoke to traders about this market trend, they cited appreciation in dollar and shortfall in supply in the market due to decline in imports, as the main reason for the upswing in prices in December.

However, the prices have more or less followed a downward trend at the beginning of the year, also, the prices have especially been very volatile this month. The price of Aniline declined to levels of Rs.161 per kg at the end of the first week of January. Thereafter the price stabilised at levels of Rs.160 per kg in the second and third week of the month, before dropping to current lows of Rs. 155 per kg. From our conversation with traders, Indianpetrochem found out that volatility in prices was directly due to the dollar fluctuation. A trader even said that, " The standard expectation for price of Aniline in New Delhi is at levels of Rs.120 per kg. The demand for Aniline will remain feeble until the prices comes down to this standard price expectation". The trader further added that the prices are anticipated to move up in the near future due expectations of a devaluation of the Indian Rupee. 

Hence, despite the current decline in prices, the demand is set to be frail in the near future until and unless there is a major price correction in the market, according to market sources.

Aniline in New Delhi market is mainly sourced from Gujarat. Indian is highly depended on imports to fulfill the demand for the chemical; Aniline in India is mainly imported from South East Asian countries.