29 February 2012 04:11 [Source: ICIS news]
By Becky Zhang
This is compared with the 2-3% forecasted growth in the
The country’s ethanolamines consumption rose to 366,000 tonnes in 2011, which is close to three times the 125,000 tonnes recorded in 2005, according to ICIS data.
The country’s strong demand was mainly driven by rapid growth in the major downstream surfactants, pesticides/medications, polyurethane (PU) and cement sectors, with the former two accounting for two thirds of
The country’s real estate market is another major booster for ethanolamines demand, mainly in the PU and cement sectors, and is expected to stay high in the next few years because of the large population, the Zhejiang-based trader said, adding that the current ease in monetary policy may temporarily dampen demand.
International players detected the potential growth of the ethanolamines market in
Some ethanolamines majors have built production bases in China in the past three years, bringing the country’s capacity to over 5m tonnes/year in 2011, up by 10 times from 2005 and making up a quarter of global capacity.
With around 860,000 tonnes/year of capacity in 2011, Asia now has the largest production capacity of ethanolamines in the world, exceeding that in the
More new capacities, mainly in
These include South Korean firm Honam Petrochemical’s 50,000 tonne/year project in
Market players said they are aware that the capacities coming on line in
“Now a large importer,
With a total consumption of around 100,000 tonnes in 2011, mainly from the optical glass production and the textile industry, the country is relying the majority of its demand for monoethanolamines (MEA) and diethanolamines (DEA) on imports since import duties for the chemical were reduced to 7% from 20% in 2010, said a major India producer, who is also a trader.
The Asian ethanolamines market is highly dynamic, characterised by active spot trading and volatile price movements, a second southeast Asian producer said.
“The key driver of ethanolamines prices used to be demand, but now it’s more of feedstock prices and the macroeconomic environment,” the producer added.
Asia’s ethanolamines prices increased steadily to $1,300-1,400/tonne (€962-1,036/tonne) CIF (cost, insurance & freight) China for MEA, $1,300-1,420/tonne CIF China for DEA and $1,500-1,670/tonne CIF China for triethanolamines (TEA), up by 5-12% since the beginning of the year.
The increase was underpinned by reduced supply, restocking and firmer feedstock ethylene prices, ICIS data showed.
($1 = €0.74)
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