For the Quarter Ending June 2023
North America
In Q2 2023, the price of Polyetheramine in North America plummeted in successive months. When compared with the previous quarter, the prices remain on the lower end in Q2 2023. The Polyetheramine market was seen to be on the lower end as adhesive and sealant ventures' interest brought about frail expense support. The feedstock Ammonia market was additionally frail on top of feeble energy values and high inventories among the essential makers. Trading exercises in the USA market stayed bearish because of satisfactory supplies and feeble market basics for the new stocks. Imports of Polyetheramine from Canada to the USA drooped with a cautious stance from the critical manufacturing units regarding an additional increment of inventories. US participants attributed the weaker market dynamics due to low product demand and comfortable availability. Market participation in purchasing the cargo from the overseas market in bulk declined, increasing the product inventories among the manufacturing units. In June 2023, the price of Polyetheramine in the US declined to USD 3152/ton CFR Houston.
Asia Pacific
In Q2 2023, the Polyetheramine market slumped in the wake of low-demand fundamentals and a gradual increase in product inventory. Exports of Polyetheramine from China to other Asian regions stay adequate, bringing about an accumulation of inventories among the ports. In China, run rate cuts have been applied across the production chain as cracker operators have additionally been bringing their operating rates down to avoid the slide in monomer costs. In June 2023, the Dragon Boat Festival also contributed to a slump in market trading activities, and limited trading fundamentals remain the primary reason for weak market fundamentals. In June 2023, the price of Polyetheramine in China declined to USD 2984/ton FOB Shanghai. The demand for Polyetheramine in the adhesive and sealant industry remained impacted with sufficient stocks at the manufacturing units. The demand for Polyetheramine in the international market was deterred, due to which prices slid across the globe. Stock levels in the domestic market stayed ample and local producers have reduced operating rates to minimize margin loss given the persistent demand slump.
Europe
In Q2 2023, the Polyetheramine market remained lackluster, with limited bids and offers for fresh stocks in the European market. In Germany, market participants were less keen to purchase the cargo in bulk, which brought low trading volume and even lower prices for feedstock Ammonia prices. Polyetheramine surrendered another penny as traders sought further discounts amid growing domestic stockpiles and declining purchasing interest. While demand remains weak, the manufacturing units continue to act cautiously with purchases and prioritize reducing inventories as the trajectory of the European economy remains uncertain. The demand remained unresponsive to the talks about stabilization, and uncertainties about the costs side linger. The declining trade offers in the European region drove cautious optimism on the part of sellers. The cost of feedstock Ammonia tumbled this quarter with weak market basics and lower offerings for the new stocks, additionally influencing the Polyetheramine market. In terms of product supply, suppliers remain skeptical about increasing the prices for the domestic and overseas markets.
For the Quarter Ending March 2023
North America
In the US market, Polyetheramine prices showed an upward trend throughout the quarter, driven by rising upstream costs and improved performance of the downstream industries. The consistent increase in upstream Ethylene oxide and Propylene oxide prices during the quarter provided significant cost support to Polyetheramine. Additionally, downstream demand from the paints and coatings industry improved in the US market following the New Year holidays. It is worth noting that imports into the US market remained tight due to logistical issues and temporary shutdowns at key importing ports on the US West Coast. As a result, the supply dynamics of several petrochemicals, including Polyetheramine, were affected, leading to longer lead times.
APAC
During the first quarter, the prices of Polyetheramine experienced fluctuations, with prices initially increasing, then decreasing, and ultimately recovering towards the end of the quarter. The upswing in demand from the construction industry and high costs of upstream Propylene oxide and ammonia led to a surge in Polyetheramine prices in the Chinese market in January. In February, however, the prices of Polyetheramine in China declined due to inadequate upstream support and weakened demand. In March 2023, there was an upward trend in Polyetheramine prices, driven by high consumption from downstream industries. The positive price movement was caused by strong domestic demand for Polyetheramine in China and limited product availability in the market. The restricted supply from traders and inadequate supply to meet downstream industries' demand resulted in increased product costs.
Europe
The prices of Polyetheramine in Germany witnessed a decline during the first two months of the first quarter, owing to low demand and weak upstream Ethylene and Ammonia costs, as well as decreasing energy costs. However, towards the end of the quarter, the price of Polyetheramine recovered in the German market due to increased demand from other European countries and improvement in feedstocks. The demand dynamics from downstream applications such as adhesives, coatings, and other end-uses remained largely stable. It is worth noting that the European region experienced several instances of labor strikes and other issues, which led to tight logistics.
The price movement of Polyetheramine has witnessed a drop in the quarter ending December 2022, owing to the bearish construction and coating industry demand and lower feedstock glycol costs in the North American region. The feedstock Glycols prices fluctuated due to the uncertainty in the crude oil prices throughout Q4 of 2022. The rising recessionary fears and the onset of the escalating inflationary input cost pressures reduced the domestic offtakes in the downstream sector for the product considerably. The slowed domestic demand, coupled with ample supplies amidst cheaper imports from Asia, has caused a fall in the prices in the fourth quarter of 2022. Thus, the price of Polyetheramine was assessed at USD 3634/ton in December 2022.
The price trend of Polyetheramine has shown an overall bearish market in the APAC region in the quarter ending December 2022. The fluctuating feedstock Glycols prices in the Chinese market due to the consequent reduction in the upstream cost pressure and stagnant downstream construction and coating industry demand conclusively led to lower values of the commodity. The COVID lockdown disturbances led to delays in the cargo momentum and diminished the market participation of Polyetheramine in the downstream sector in China this quarter. Meanwhile, the fear of recession in the international market adversely impacted overseas offers and shipping rates in the region and raised the domestic inventory levels. Therefore, the price of Polyetheramine was assessed at USD 3456/MT FOB Shanghai in December 2022.
Polyetheramine prices settled at lower values in the fourth Quarter of 2022 with a slump in the downstream offtakes, such as in construction and coating industries in the European region. Additionally, the lower feedstock glycols prices supported the price movement of Polyetheramine in the quarter ending December 2022. As a result of the Christmas holidays in the European region, the demand fundamentals remained sluggish, the soaring inflation and a depressed economic outlook across the regional market at the termination of this quarter. The market players remained cautious about the decreasing output and made sales at lower margins amid the fear of piling of stocks towards the end of the year and slowed purchasing customer interest in the product.
