Asian MEA Triazine Market Sees Bleak Outlook for Q2 2023, Oversupply and Low Demand to Blame

MEA Triazine, a chemical compound used as a scavenger for hydrogen sulfide (H2S) in the refining of crude oil has recently experienced a price fall in the Asian market. However, it was facing an uptrend during the Q1 2023, supported by the growing demand from the gas and oil industries, which was healthy throughout that timeframe. The cost of H2S scavenging including MEA Triazine was also increased due to stricter regulations and an increasing presence of H2S in crude oil. This resulted in a rise in demand for MEA Triazine, which has driven up its price during the first quarter of 2023. However, the market situation for MEA Triazine in the Asia-Pacific region for April 2023 observed to be declining.

Entering April 2023, the decline in demand from the downstream gas and oil industries was mostly to blame for the recent reduction in the price of MEA Triazine. The price decrease could also be attributed due to several factors, such as a decrease in demand from the gas and oil industries, a shift towards alternative methods of H2S scavenging, or increased competition from other market players. Currently, a vast supply of the substance was available, according to Asian producers. As a result, the MEA Triazine market looked gloomy.

In the feedstock market, the Monoethanolamine supply from Saudi Arabia was at its best, and triazine production in the Chinese market ran without a hitch. In anticipation of rising orders from downstream industries, MEA Triazine production was more than adequate as long as the feedstock supply remained strong. However, because the demand did not match the anticipated outlook, Asian countries were left with a significant amount of unsold material and were prepared to negotiate to sell off the stocked material. As a result, its price fell in April after increasing during the first quarter.

As per the ChemAnalyst Forecast, “The price of MEA Triazine is anticipated to maintain a downward trend because there are still substantial stockpiles available to meet downstream demand. Additionally, with lower crude oil production in the upcoming month, demand from the gas and oil industries may fall.