This month, the domestic market atmosphere for monoethanolamine continued to be light. As of May 30th, the benchmark price of Yishangshe Yiethanolamine was 10440.00 yuan/ton, a decrease of -0.57% compared to the beginning of this month (10500.00 yuan/ton). This month, the primary demand for transactions in the monoethanolamine market has weakened expectations for transactions, with dealers offering more discounts for shipments, and downstream purchasing intentions being lackluster.

Market analysis:

This month, the performance of the monoethanolamine market has been relatively stable, but with a slight off-season atmosphere. After experiencing a period of decline, the price of ethylene oxide in the market gradually stabilized. As the main raw material of monoethanolamine, it provided some support for the cost of monoethanolamine, but the support was still average. Due to the relatively sufficient supply of monoethanolamine in the market, while the demand from downstream users has weakened, the trading atmosphere in the market appears relatively cold.

On the one hand, downstream users mostly follow up on demand and are cautious in purchasing monoethanolamine. Market transactions are mainly based on regular orders and lack support from bulk purchases; On the other hand, some production enterprises may have made price adjustments to reduce inventory, further affecting the market price trend.

In terms of cost:

The domestic market price of ethylene oxide fell in May. According to the Commodity Market Analysis System of Shengyishe, as of May 30th, the average price quoted by domestic ethylene oxide enterprises was 6900.00 yuan/ton, a decrease of -1.43% compared to the price on May 1st (the reference price for ethylene oxide was 7000.00 yuan/ton). The early maintenance equipment has started to resume production, and there has been a slight increase in supply pressure. Coupled with the unsatisfactory transmission of downstream product prices, the price of ethylene oxide has begun to decline. However, the cost support brought by the raw material side remains, and it is expected that there is not much room for price decline in the short term, with short-term fluctuations being mainly weak.

The liquid ammonia market fluctuated in May. According to the Commodity Market Analysis System of Business Society, as of May 28th, the average quoted price of liquid ammonia enterprises was 3100.00 yuan/ton, an increase of 3.91% compared to May 1st (reference price of liquid ammonia was 2983.33 yuan/ton), and a decrease of -6.06% compared to May 15th (reference price of liquid ammonia was 3300.00 yuan/ton). The main reason is that the maintenance equipment has resumed work one after another, and the supply side has shown a loose performance. Coupled with the downstream related product urea, which stopped rising this week, some regions have fallen back, and the market has fallen into a stalemate, which has dragged down ammonia prices.

On the demand side:

As an important organic chemical raw material, monoethanolamine has a wide and diverse range of application scenarios on the demand side. In the chemical industry, monoethanolamine is the main raw material used as a corrosion inhibitor, surfactant, catalyst and crosslinking agent in the polyurethane (coating) industry, fluorescent whitening agent in the textile industry, synthesis of advanced dyes in the dyeing and chemical industry, neutralizing agent in the rubber and ink industries, rust inhibitor, preservative, paint manufacturing and acid gas absorption rust inhibitor, preservative, paint manufacturing and acid gas absorption agent collector. Downstream stocking is mainly based on demand.

Overall:

The market for monoethanolamine is showing a stable and weak trend, with downstream user procurement demand mainly maintaining in a rigid range. Holders have a relatively pessimistic attitude, and the focus of market negotiations is clearly biased towards the low price range. Without clear positive factors to support it, the monoethanolamine market is currently struggling to reverse its decline. According to analysts from Business Society, the market for monoethanolamine may continue its weak consolidation trend in the short term.