Feedstock Cost Elevation Impacts Diethylene Tri Amine Prices in China
- 15-Jun-2022 5:06 PM
- Journalist: Li Hua
Diethylene tri amine prices has maintained an upward trend in China due to high feedstock Ethylene costs in June. Limited raw material availability escalated the production costs for Diethylene tri amine and created inventory pressure on the enterprises to satisfy the market requirement for the product. Traders continued to raise the prices in the domestic market for Diethylene tri amine amid a shortage of inventories to attain maximum profit margins.
Moreover, production activity depends on energy price movement for electrolysis operation to prepare the product. Energy costs are affected by the high electricity consumption due to the ongoing summer season in India, which led to higher energy prices in the Indian market.
Meanwhile, Diethylene tri amine prices are also influenced by the rising costs of Crude Oil due to the increasing consumption in the Chinese domestic market amid limited availability of inventories. The market for Diethylene tri amine is elevated by the slightly eased-up lockdown restriction, trading, improvement in production activity in the market, and decent demand for Diethylene tri amine.
Moreover, robust demand from primary Diethylene tri amine consuming downstream plastic industry because of the escalating consumption in the construction segment in India due to various government initiatives also conclusively pulled the prices of Diethylene tri amine upward in June.
As per ChemAnalyst anticipation, prices of Diethylene tri amine may surge in July owing to the robust demand from the downstream industries such as plastic and textile dye in China. Moreover, feedstock Ethylene and Ethylene Dichloride prices are expected to show stability as improved production amid high demand from the Chinese domestic market is anticipated, backed by the ease of lockdown restrictions in China. Thus, as per the Analysis conducted by ChemAnalyst, prices of feedstock are likely to show an increment of nearly 4% in China in the month of July. Furthermore, energy prices are expected to increase in the Asian market amid the escalated Russia-Ukraine conflict.