DETA Prices Slide in European Market Amidst Feeble Demand and Economic Turbulence

Diethylene Triamine (DETA) prices continued to fall in the European market in April 2023 as a result of mild cost pressure from feedstock costs, low demand, and steady inventories. Furthermore, macroeconomic factors such as restricting interest rates, constraining credit due to regional banking crises, and a fluctuating pricing environment for upstream items all impact the commodity's price realization this month in Europe. Moreover, the persistent weakness in the trading atmosphere across the overseas market since the start of the year effectively impacted the commodity prices.

In the European market, DETA prices have fallen due to slow offtakes in the coating segment and as the curing agent in the Epoxy Resin production industries, such as Olin corporation, and stable supply in the region. Economic uncertainty caused by the European Central Bank's (ECB) raising interest rates concerning high inflation and a drop in purchasing activities has further impacted DETA market sentiments in the regional market. Furthermore, low upstream Ethylene costs, followed by a constant fall in crude oil prices, subsequently impacted the region's DETA production cost this month. In addition, the Asian region's poor demand dynamics pushed regional producers to ship the material offshore. As a result, the material available on the European coasts has become stale. Furthermore, market participants stated that domestic production run rates would remain modest in May 2023. Therefore, the price of DETA was quoted at USD 3876/MT Hamburg (Germany), with a monthly drop of 4% in April 2023.

As per the ChemAnalyst, it is anticipated that DETA prices in Europe will gain stability in May 2023 as downstream demand from the coating industry and as an Epoxy Resin curing agent will remain unchanged amidst the economic downturn in Europe and persistently high-interest rates might weigh on the purchasing sentiments in the regional market. Moreover, anticipated lower values of upstream Ethylene might affect Europe's DETA pricing dynamics in May 2023.