For the Quarter Ending June 2023
During the second quarter of 2023, the price of MEA Triazine experienced a continuous decline. This downward trend was primarily caused by a reduction in oil production during that period, as OPEC+ decided to cut back on oil production. This led to a decrease in the market demand for MEA Triazine from the oil and gas industries. Additionally, market sentiments were sluggish, and there was a surplus of MEA Triazine available in the region. Meanwhile, traders and distributors faced challenges with unsold stocks, which compelled them to lower their profit margins and offer the product at discounted rates. Moreover, the region experienced rising inflation and high-interest rates, which affected consumer spending negatively, especially in the oil industries. Ultimately, the market price for MEA Triazine continued to deteriorate throughout the second quarter, supported by multiple factors, including weakening feedstock prices, low demand from key industries, and the presence of high inventories in the US market. These combined elements contributed to the declining market conditions for MEA Triazine during that period.
During the second quarter of the year 2023, the MEA Triazine market witnessed a decline in prices. This price decrease is a result of a bearish outlook for MEA Triazine in the Asia-Pacific region, primarily due to the lack of demand from key end-use industries such as the oil and gas sector. Moreover, the market has experienced sluggish demand and limited trading activities from overseas markets, which has further contributed to the downshift in the cost of the product. In response to these conditions, MEA Triazine supply in China was reduced during this period as suppliers anticipated decreased demand from downstream sectors and increasing inventories. Downstream manufacturers showed a moderate level of demand, and the regional supply was sufficient. Consequently, their purchases were infrequent and only made when necessary. The prices of the upstream materials, monoethanolamide, and formaldehyde, remained steady, failing to support any price increases for MEA Triazine. According to data from the National Bureau of Statistics, the official manufacturing purchasing managers’ index (PMI) came in at 49.0 in June compared to 48.8 in May, indicating that the manufacturing activity in the region was smooth. Thus, the price of MEA-Triazine in China was USD 2820/MT CFR Shanghai, by the end of the quarter, while the price in India was quoted to be INR 19700/MT Ex-Ahemdabad.
In the second quarter of 2023, MEA-Triazine prices experienced a decline in the European region due to several factors. The falling prices of upstream Monoethanolamide and Formaldehyde and weak demand played a significant role in this price decrease. By the end of the quarter, upstream Formaldehyde prices had dropped by 4%, which further supported the overall downward trend in MEA-Triazine prices. The ample supply of MEA-Triazine in the market, coupled with reduced demand amidst a weakened global economy, also contributed to the price drop. The ongoing inflationary pressures and the Russia-Ukraine war had widespread impacts across all sectors in the region, including the healthcare sector, affecting the demand for MEA-Triazine. The instability in market dynamics has also affected consumer purchasing sentiments. Additionally, surplus inventories of MEA-Triazine in the domestic market and the presence of competitive prices led traders to sell the product at lower costs. In summary, during the second quarter of 2023, MEA-Triazine prices in Europe declined due to multiple factors, including falling upstream Monoethanolamide and Formaldehyde prices, reduced demand, geopolitical tensions impacting market dynamics, and surplus inventories leading to competitive pricing.
For the Quarter Ending March 2023
The cost of Monoethanolamine (MEA) Triazine climbed during the first quarter of 2023 due to the higher costs of its upstream formaldehyde and monoethanolamine. These feedstocks had increased due to the rise in crude oil prices. Additionally, there was a labor shortage caused by heated negotiations between union dock workers and their employers, leading to a reduction in production activity. This resulted in reduced stocks and put selling pressure on some MEA Triazine businesses. Despite this, the downstream gas and oil industries' operating rates remained positive, which helped to keep the MEA Triazine market positive throughout the first quarter of 2023.
In APAC, Monoethanolamine (MEA) Triazine prices increased after the spring festival due to increased demand from downstream sectors in China, particularly from the gas and oil industries. The increase in demand was driven by stricter regulations and the increasing presence of H2S in crude oil, which led to a rise in demand for MEA Triazine as a scavenger. The feedstock market also played a role in the increase in demand, with the Monoethanolamine feedstock supply from Saudi Arabia being strong and triazine production in the Chinese market running smoothly. Overall, these factors contributed to a rise in demand for MEA Triazine and subsequently drove up its price during the first quarter of 2023 in Asia-Pacific Region.
Monoethanolamine (MEA) Triazine prices increased in Europe during the first quarter of 2023 because of the significant demand from the downstream gas and oil industries. Additionally, the feedstock market was robust and had a plentiful supply of triazine and monoethanolamine. However, the slow production rates and supply interruption at the end of the quarter brought on by worker protests in Europe over low wages and terrible working conditions also contributed to the increasing trend in its price. As a result, the price for MEA Triazine stabilized towards the end of the quarter due to rising stocks, adverse consumer attitudes, and few consumer inquiries from downstream industries.
MEA (Monoethanolamine) Triazine displayed mixed sentiments in North America, with the market primarily exhibiting modest enthusiasm for the majority of the fourth quarter. The key reasons for the decreased pricing trend in the region were the growing stockpiles and changing consumer attitudes. Due to unfavorable market dynamics and falling feedstock prices for monoethanolamine and formaldehyde, the price of MEA Triazine fell. The majority of it, nevertheless, saw a decline in the market because the demand from the oil and gas sectors was not enough to make up for the price increase. While this was going on, producers had enough inventory on hand to meet domestic demand. It can be seen that MEA((Monoethanolamine) triazine market activity reduced in the fourth quarter of 2022.
Monoethanolamine Triazine prices climbed in the first half of the fourth quarter, with November prices hovering at about USD 2855/MT CFR Shanghai (China). Later, a drop in its price for the majority of the Quarter was brought on by a lackluster demand from downstream oil and gas businesses. As COVID instances increased in China, MEA Triazine producers in the Chinese market were on guard. Additionally, because consumers and sellers were in the dark about the consequences of the covid-resurge, some dealers claimed that the makers of MEA triazine had somewhat lowered the price of the material. MEA Triazine pricing consequently decreased, according to the ChemAnalyst group, in the fourth quarter of 2022.
Monoethanolamine Triazine saw a mixed mood, mirroring the Asian market, with the MEA Triazine declining for most of the fourth quarter. However, as its usage as an H2S scavenger was gradually waning, downstream saw slow offtakes from the gas and oil industries on the demand side as well. Meanwhile, manufacturers in the area had access to enough inventory. Thus, it was evident that MEA Triazine's price decreased in the second half of Q4. Furthermore, MEA triazine demand was at a low level, despite several players being seen reluctantly increasing stock levels in expectation of a rise in demand throughout the quarter.