Methylamines    

*Millions of pounds per year of mono-, di- and trimethylamines. Commercial production is typically by alkylation of anhydrous ammonia with methanol. Hence methylamine’s production cost is sensitive to the cost of natural gas. The capacities of many plants are variable based on the required product mix of mono-, di-, and tri- products. The product mix exiting the unit is controlled by adjusting the alcohol to ammonia feed ratio and recycling the lesser demanded mono- and trimethylamines, in order to maximize the diamethylamine product.

In August 2002, Chinook Group (Sombra, Ontario) announced it had has idled one of its three methylamine units at Sombra, which had a capacity of approximately 35 million pounds. The move was to help balance the methylamine supply/demand market situation. More than 90 percent of methalamines imported into the U.S. originates in Canada.

In 1998 Air Products added 150 million pounds of methylamines capacity (75 million pounds capacity on stand-by) at Pensacola, Fla., to the existing 250 million pound base capacity.

Profile last published 4/24/00; this revision 7/28/03.

DEMAND

2001: 402 million pounds of mono-, di- and trimethylamines; 2002: 412 million pounds; 2006: 470 million pounds, projected. Demand includes imports (2001: 94 million pounds; 2002: 100 million pounds) less exports (2001: 10 million pounds; 2002: 8 million pounds).

Market demand in 2002 was split between the different products as: monomethylamine, 88 million pounds (21 percent); dimethylamine, 257 million pounds (63 percent); trimethylamine, 67 million pounds (16 percent).

GROWTH

Historical (1997 - 2002): 2.7 percent per year; future: 3.3 percent per year through 2006.

PRICE

Historical (1997 - 2002): High, $0.77 per pound, list, anhyd., 100 percent basis, tanks, frt. equald.; low, $0.77, same basis. Current: $0.77, same basis. List price same for mono-, di- and trimethylamines. Market pricing has been substantially below list pricing.

Beginning in May 2001, producers began announcing what has become a series of price increases for off-schedule prices in order to recover dramatically increased raw material costs due to escalating prices for natural gas during this period. In August of this year, at least one producer will be invoicing with a natural gas surcharge. The surcharge will be $0.008 per pound for every $1.00 increase in natural gas above $6.50 per Mbtu, based on the settlement contract closing of the New York Mercantile Exchange.

USES

Monomethylamine: pesticides, 37 percent (methamsodium, 21 percent; methyl isocyanate based 16 percent); n-methylpyrrolidone (NMP), 34 percent; alkylalkanolamines, 23 percent; surfactants, 3 percent; miscellaneous, including explosives and pharmaceuticals, 3 percent.

Dimethylamine: solvents, including dimethylformamide (DMF) and dimethylacetamide, 29 percent; water treatment, 28 percent; dimethylaminoethanol (DMAE), 18 percent; fatty tertiary amines, 8 percent; dimethylaminopropylamine, 8 percent; pesticides, 3 percent; miscellaneous, including rubber processing chemicals, 6 percent.

Trimethylamine: choline chloride, 48 percent; miscellaneous, including cationic starch reactants, 52 percent.

STRENGTH

Many application segments will grow at or above the GNP, but the largest volume segments will continuing growing at even higher rates. In particular, monomethylamine consumed for pesticides (2.5 percent p.a.), and alkylalkanolamines (2.7 percent p.a.); and dimethylamine used for water treatment polymers (5.9 percent p.a.); dimethyl aminopropylamine (13.5 percent p.a.); and dimethylaminoethanol (7.5 percent p.a.). Totaled, these segments represent 49 percent of demand last year.

The phase-out of methyl bromide in fumigant applications is increasing the market for methamsodium (21 percent of methylamine demand). Much of this is used for grain storage pesticide applications. Methyl bromide is an alleged ozone depleter and the deadline for phasing out domestic production and use of methyl bromide is 2005.

WEAKNESS

Exports of methylamines have been declining since their peak of 34 million pounds in 1993, falling to 8 million pounds in 2002 as overseas capacity has grown. While this is a small portion of the total U.S. production, a downturn in derivatives exports would be felt quickly in methylamines.

OUTLOOK

The outlook is very good. Methylamines' growth should continue moderately strong for the foreseeable future as applications in the largest market segments are still growing at better than the GNP rate. Aggregate growth over the forecast period is projected to be 3.3 percent per annum. Raw material supplies of ammonia and methanol are abundant, but the prices for natural gas used in their production has been significantly higher compared to prices prior to the winter of 2000 - 2001.

HISTORICAL DATA