30 August 2013 09:42 [Source: ICB]
Upstream MEG market prepares for a further price spike amid current shutdowns and an impending plant turnaround
Spot prices of monoethanolamines (MEA), diethanolamines (DEA) and triethanolamines (TEA) in China may continue rising in response to tightening supply amid plant maintenance in the country and overseas, market participants said on 22 August.
Recent gains were triggered by rising costs of feedstock ethylene oxide (EO), they said.
On 21 August, MEA prices in China in drummed packaging were assessed at yuan (CNY) 11,000-12,000/tonne ($1,797-1,961/tonne) EXWH (ex-warehouse), up by CNY200-800/tonne week on week, while DEA prices rose to CNY11,300-12,300/tonne EXWH, CNY300-800/tonne higher over the same period, according to ICIS.
Meanwhile, TEA prices increased by CNY200-700/tonne to CNY12,200-13,200/tonne EXWH, the data showed. The difficulties in securing spot material because of plant turnarounds overshadowed the stable-to-soft demand, market participants said. Typically, China faces a demand lull in the amines segment during summer. "Supplies are very tight. Two major plants are down in China and we're not getting much offers for imported material," said one market participant in east China.
Ethanolamines has applications in agrochemicals, surfactants, personal care and construction. MEA is produced by reacting ethylene oxide (EO) with ammonia. The chemical reaction also produces DEA and TEA.
FEEDSTOCKS PRICE SPIKE
Besides tighter cargo availability for both imported material as well as locally produced supply, the spike in feedstock EO prices, which were in turn supported by a strengthening monoethylene glycol (MEG) market, helped underpin the current amines price strength, market participants said.
Asia's MEG spot prices continued their uptrend in the week ended 16 August, as a sales rally in downstream polyester industry drove up traders' buying interest and discussion prices.
MEG prices rose by $90-100/tonne (€68-75/tonne) to $1,200-1,230/tonne CFR Asia, according to ICIS.
On 21 August, EO prices in eastern China were assessed at CNY10,200/tonne EXWH, up by CNY200/tonne week on week.
The market is bracing for a further price spike amid current shutdowns and an impending turnaround at a major regional facility in southeast Asia.
Dutch producer Akzo Nobel's 80,000 tonne/year amines complex at Ningbo in China's Zhejiang province is undergoing a regular month-long turnaround.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Sample issue >>
My Account/Renew >>
Register for online access >>
|ICIS Top 100 Chemical Companies|
|Download the listing here >>|
Asian Chemical Connections