SE Asia ethanolamines prices to face further downward pressure

(recasts to reflect Malaysian ringgit currency)

SINGAPORE (ICIS)–Spot prices of ethanolamines in southeast Asia are likely to face further downward pressure amid falling ethylene prices as well as the volatility in upstream crude and naphtha values, market participants said on Friday.

Prices of monoethanolamines (MEA), diethanolamines (DEA) and triethanolamines (TEA) tanked during the week ended 26 August, reflecting market discussion levels.

“Demand is weak and the end-users are not keen on taking material,” said one market participant.

The depreciation of the Malaysian ringgit currency to a record low was a key trigger, while supply of the material is expected to build following the end of regional plant maintenance, the participants said.

Drummed MEA prices in southeast Asia slumped by $140-150/tonne during the week ended 26 August to $950-1,100/tonne CIF SE Asia, ICIS data showed.

The offer level of southeast Asian MEA was quoted at $1,000/tonne CIF SE Asia in drums.

The selling ideas from a separate producer in southeast Asia stood at $1,100/tonne CIF SE Asia for MEA in drummed packaging.

For DEA, drummed prices fell by $50-$150/tonne to $950-1,100/tonne CIF SE Asia over the same period, according to ICIS.

The selling ideas of southeast Asian DEA stood at $1,000/tonne CIF SE Asia in drummed packaging.

The drummed DEA offer level from a separate southeast Asian producer was quoted at $1,100/tonne CIF SE Asia

On the other hand, the buying ideas for both MEA and DEA were quoted at $950/tonne CIF SE Asia in drums.

Meanwhile, for TEA, drummed prices fell by $100/tonne during the week ended 26 August to $1,200-1,300/tonne CIF SEA Asia.

The drummed TEA offer level of southeast Asian material was pegged at $1,270/tonne CIF SE Asia as well as at $1,300/tonne CIF SE Asia against drummed buying ideas of $1,200/tonne CIF SE Asia.



Supply is seen burgeoning as Thailand’s PTT Global Chemical is scheduled to restart its 85,000 tonne/year EO and 50,000 tonne/year ethanolamines unit in Map Ta Phut on 24 August, market sources said.

The units have been off line since end-June, they said.

The capacity of the amines plant remains at 50,000 tonnes/year following the maintenance, while the EO plant’s capacity has expanded to 136,000 tonnes/year following the turnaround, sources said.

The run rates of the amines unit is expected to hit 100% of capacity, they added.

The company could not be immediately reached for comments.

Malaysia’s PETRONAS Chemicals Group (PCG) is currently operating its 75,000 tonne/year ethanolamines unit at Kerteh, Terengganu, at full capacity, according to market participants.

Meanwhile, ethylene spot prices in northeast Asia fell by $50-60/tonne during the week ended 21 August to $900-910/tonne CFR NE Asia, with restocking activity weighed by high inventory levels.

Spot ethylene prices in southeast Asia fell by $50-75/tonne to $870-900/tonne CFR SE Asia during the same week.

On 28 August midday in Asia, ethlylene prices were assessed at $800-830/tonne CFR NE Asia, down $10/tonne at low end from the close of trade on 27 August, according to ICIS.

Ethylene bids and buying ideas were capped at $800/tonne CFR NE Asia, against offers and selling ideas at $830/tonne CFR NE Asia for September delivery.

Crude prices fell to their lowest level since the first quarter 2009 on 24 August amid concerns over the Chinese economy and a plunge in equity markets. Ongoing oversupply concerns added further downward pressure.

However, crude prices made a late-week recovery amid a global equity market rally, higher-than-expected second-quarter US GDP growth and crude supply disruptions in Nigeria.

Naphtha prices, having slumped to a six-and-half year low, rebounded by the end of the week, and were assessed at $414-416/tonne CFR Japan at midday 28 August, ICIS data showed.

By Felicia Loo