USES

There are three main ethanolamines: monoethanolamine (MEA), diethanolamine (DEA) and triethanolamine (TEA), which is available as two types, depending on purity and colour: TEA85% and TEA99%.

Ethanolamines span a large number of end markets. MEA’s major use is in production of ethylene amines, chelating agents. It is also used as feedstock in the production of detergents, emulsifiers, polishes, cosmetics, pharmaceuticals, corrosion inhibitors and other chemical intermediates.

DEA is primarily used in the production of glyphosate, a herbicide, but is also used as a surfactant in personal care applications, in gas treatment and as a corrosion inhibitor. A large portion of TEA goes into detergents and personal care, followed by engineering/metal working and concrete manufacture.

SUPPLY/DEMAND

The demand situation in Asia remains weak owing to a slow-growing economy in China. Buyers are largely side-lined on prospects of burgeoning supply following the end of regular turnarounds.

Ethylene oxide prices, which rose to a 10-month high in late March, started to stabilise as the end of maintenance works brought about a staple flow of supply to the market. The rise in raw material costs was what supported the local amines prices in China previously. However, that support factor is diminishing.

While downstream demand was weak owing to China adjusting its economic growth, supply of ethanolamines are set to rise with plants returning from maintenance.

Thailand’s PTT Global Chemical (PTTGC) has resumed operations at its 50,000 tonne/year unit in Map Ta Phut following a turnaround.

Saudi Kayan’s 100,000 tonne/year ethanolamines plant in Al-Jubail, Saudi Arabia, was scheduled to have resumed operations in April following a regular maintenance. It also restarted its 1.48m tonne/year cracker in Al-Jubail on 11 April after a scheduled turnaround.

South Korea’s Lotte Chemical is running its 50,000 tonne/year plant at Jiaxin city, China, at 70% rate following a recent shutdown.

Taiwan’s Oriental Union Chemical Corp ’s (OUCC) was scheduled to have restarted its 40,000 tonne/year plant at Yizheng in Jiangsu province, China, on 15 April.

PRICES

China’s domestic MEA prices inched down by CNY100/tonne at the high end to CNY9,000-9,700/tonne EXWH during the week ended 13 April, according to ICIS data. Prices were firmer compared with CNY8,500-9,000/tonne EXWH four weeks previously.

Chinese local DEA prices were yuan (CNY) 9,000-9,500/tonne EXWH during the week ended 13 April, declining by CNY300/tonne at the upper end of the range. Four weeks before, prices were CNY8,300-9,000/tonne EXWH.

On China’s TEA local prices, they tumbled by CNY300-500/tonne during the week ended 13 April to CNY9,000-9,500/tonne EXWH, though they remained firmer than CNY8,500-9,000/tonne EXWH as assessed four weeks ago.

TECHNOLOGY

Ethanolamines are produced by adding ethylene oxide (EO) to ammonia. Excess ammonia is removed in the first column and recycled, before water is removed and the homologues are separated. The product mix can be varied. MEA is usually the most abundant and can be up to 70% of the end product stream. In addition, recycling of the various products to produce more DEA or TEA can further alter the end-product mix.

OUTLOOK

Prices in China are seen to be falling amid weak downstream demand and rising supply. With ethylene prices in northeast Asia declining versus month-ago level, market players conceded that ethylene oxide (EO) prices within China have hit the ceiling, suggesting the prospects of cuts in amines prices in time to come.

To begin with, the stronger price trend in China during March was in response to widespread plant maintenance in China and the Middle East as well as in turnarounds and production issues in southeast Asia, all of which occurred at the same period.

However, once the plant maintenance works come to an end, production will resume and the market would expect a hike in supply and with that, prices are expected to fall.

The downstream markets in China are regarded to be weak and the overall demand for ethanolamines in China is mediocre. Limited buying is taking place and such a downtrend will continue to prevail.

In Europe, the market is seen largely balanced for TEA and DEA, but it remains on the long-side for MEA. The latter is attributed to the knock-on effects of lower demand for MEA, which is used further downstream in shale gas exploration. The competitiveness of the latter has been adversely affected by the historically low crude oil prices over recent months.