11 April 2013 11:02 [Source: ICIS news]
SINGAPORE (ICIS)--Domestic prices of ethanolamines in China fell by as much as yuan (CNY) 500/tonne ($81/tonne) this week as market players expect a further reduction in the cost of feedstock ethylene oxide (EO), industry sources said on Thursday.
On 10 April, prices of drummed monoethanolamine (MEA) were assessed at CNY11,350/tonne EXWH (ex-warehouse), down by CNY100/tonne from the previous week, according to ICIS.
Average prices of drummed diethanolamine (DEA) and triethanolamine (TEA) likewise fell by CNY200/tonne to CNY11,700/tonne EXWH, and by CNY500/tonne to CNY12,800/tonne, respectively, according to ICIS.
Ethanolamines prices have been on a steady decline since mid-March, shedding between 7.1-7.9% of their values over the past six weeks, ICIS data showed.
Feedstock EO prices were at CNY11,500/tonne EXWH on 10 April, unchanged from last week but down by CNY1,100/tonne from 29 March, as producers were facing inventory pressures amid lacklustre demand and the poor performance of its major downstream – the monoethylene glycol (MEG) sector.
Spot MEG prices in the domestic China market were assessed at CNY7,150-7,450/tonne ex-tank, plunging by about 16% from late February, according to ICIS data.
Expectations of further EO price fall in the coming weeks kept ethanolamines buyers on the sidelines, hampering trading activity.
EO prices may further decline by CNY500-800/tonne as supply is long amid weak derivatives demand, Chinese traders said.
($1 = CNY6.20)
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