China’s local amines prices seen higher on tight supply

Focus article by Felicia Loo

SINGAPORE (ICIS)–China’s domestic prices of ethanolamines are seen climbing higher on tightening supply, which overshadows the stable-to-soft demand situation in the country, market participants said on Thursday.

The prices of the homologues have been on an uptrend in tandem with local feedstock ethylene oxide (EO)) and regional ethylene prices.

In China, the local monoethanolamines (MEA) discussions and trades rose to yuan (CNY) 9,200-10,000/tonne EXWH (ex-warehouse) during the week ended 25 March, according to ICIS.

Prices were up from 9,000-9,600/tonne EXWH during the week ended 18 March, ICIS data showed.

Domestic Chinese prices of diethanolamines (DEA) increased by CNY500/tonne at the high end to CNY9,400-10,500/tonne EXWH during the week closing 25 March.

Meanwhile, the local triethanolamines (TEA) price discussions rose by CNY200-800/tonne EXWH to CNY9,200-10,800/tonne EXWH over the same period, ICIS data showed.

“Supply is very tight because of the turnarounds, although in reality, the demand is deemed as weak,” said one market participant.

Production issues as well as a spate of maintenance in China as well as in other key amines exporting countries, have added to the strain of supply tightness, the market participants added.

“The current market strength is supply driven while the slowing Chinese economy still weighs on [prices],” said another market participant.

AkzoNobel is operating its 100,000 tonne/year ethanolamines plant in the Chinese coastal city Ningbo, Zhejiang, at 60% of capacity, following a shutdown in February over a mechanical issue, market participants said.

The plant resumed production in early March, however, the supply availability was to cater to customers which had placed their orders previously, the participants added.

BASF-YPC Co Ltd (BYC) plans to conduct a regular turnaround at its 76,000 tonne/year ethanolamines plant at Nanjing in China, market sources said.

The maintenance will take place for a month to 45 days from 1 April, they said.

The company could not be reached for comment.

Meanwhile, BYC plans to shut its 740,000 tonne/year naphtha cracker in Nanjing on 1 April for maintenance, with the facility expected to remain off line until 25 May.

In South Korea, KPX Green Chemical which is currently operating its 25,000 tonne/year ethanolamines unit in Daesan at 80% of capacity, plans to shut the facility from 19 April to 10 May.

At present, it is gearing up to build inventories before the maintenance.

Taiwan’s Oriental Union Chemical Corp (OUCC) will be taking its 40,000 tonne/year ethanolamines plant at Nanjing in China off line for a regular turnaround starting in the second half of May, a company source said.

The maintenance will last two to three weeks, the source added.

The plant is currently being operated at 50-60% of capacity.

Malaysia’s PETRONAS Chemicals Group (PCG) is planning to shut its 140,000 tonne/year ethylene oxide (EO) unit at Kerteh, Terengganu, starting from late April or early May, market sources said.

The facility will be taken off line for a month, coinciding with the maintenance of the company’s 75,000 tonne/year ethanolamines unit at the same site.

During the turnaround of the amines unit, a change of catalyst at the plant will take place.

The ethanolamines unit will be shut during the same period, sources said.

Meanwhile, EO prices in eastern China were assessed as stable at yuan (CNY) 8,100/tonne EXWH during the week ended 25 March, up compared with CNY7,000/tonne EXWH during the week ended 25 February, ICIS data showed.

Ethylene spot prices in northeast Asia rose by $70-80/tonne during the week ended 20 March to $1,150-1,200/tonne CFR NE Asia, while spot ethylene prices in southeast Asia surged by $70-110/tonne to $1,230-1,250/tonne CFR SE Asia over the same period, according to ICIS.

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