Cheaper Feedstock, Falling Demand Pressure Polyetheramine Prices in the USA and Asia
- 29-Dec-2022 5:28 PM
- Journalist: Shiba Teramoto
The market of Polyetheramine has been striving to gain traction from the demand perspective for a long time. The data shows a steep fall in demand from the international market due to depressing market sentiments, which loomed after the fear of recession rose for the major global economies. Polyetheramine prices have been falling since the start of Q4 2022, putting producers into a dilemma if they should opt for a production cut or offer more discounts.
China, being the major exporter of Polyetheramine, drives the price trend for the global market; thus, during Q4 2022, due to a sudden escalation in pandemic-related uncertainties in the country, demand from the domestic Chinese market plunged, and ready availability rose effectively. However, not only in China, demand dynamics for Polyetheramine also remained dull in India and the USA; a decline in prices of around 21%, 27%, and 28% was observed for India, the USA, and China, respectively, during November 2022. Furthermore, prices are still projecting a falling trajectory, and another dip of around 4% has been noted by the first half of December 2022.
Plummeted raw material prices have also played an important role in this decline in the price of Polyetheramine in the Chinese market. The data shows a fall of around 15% in feedstock Ammonia prices during the month of November 2022, which later continued to December. This decline in feedstock prices opportune manufacturers to offer discounts in order to induce offtakes from the downstream niche buyers, affecting price trends in major importing nations like India and the USA.
The pressure of looming recession has been affecting the economic activities of major economies, including the USA and China; however, India has incomparably better shapes. Furthermore, demand for Polyetheramine from the downstream coating industry, especially from wind turbine manufacturers, remained low as countries kept focussing on tackling with falling economy and pandemic.
Additionally, under the influence of prolonged lockdown implementation and following zero covid policy protocols, Chinese Polyetheramine players have started facing a shortage of labours and supply chain disruption. As a consequent effect, key market players have anticipated that Polyetheramine prices may start rising from January 2023 for the global market.