China domestic ethanolamines may stay stable to firm on higher EO costs

13 November 2017 10:08 Source:ICIS News

SINGAPORE (ICIS)--China domestic prices for ethanolamines may stay stable-to-firm this week amid rising feedstock costs, market players in Asia said on Monday.

Monoethanolamines (MEA) spot prices in China on 8 November were assessed up week-on-week to yuan (CNY) 9,900-10,700/tonne EXWH (ex-warehouse) on a drummed basis, according to the latest ICIS data.

Domestic diethanolamines (DEA) and triethanolamines (TEA) prices were assessed firmer week-on-week, at CNY9,900-10,900/tonne EXWH and CNY11,200-11,700/tonne EXWH, respectively, ICIS data indicated.

Upstream ethylene oxide (EO) prices climbed CNY200/tonne to CNY10,200/tonne EXWH, after hitting a 7-month high two weeks before, according to data compiled by ICIS on 8 November.

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If EO prices continue to rise, domestic spot prices for ethanolamines are likely to stay strong, sources said.

Feedstock tightness and recent plant turnarounds in Asia were among the factors supporting the market, participants said.

Overall demand was perceived as stable among most sources.

Separately, some producers and buyers may be affected by environmental restrictions, in terms of reducing output to meet certain requirements, a trader source added.

Ethanolamines are used to make personal care and household products, detergents and herbicides.

By Kheng Wee Loy