Ethanolamine prices in the Asia-Pacific region witnessed a steady decline in the first half of December 2024, weighed down by weak upstream fundamentals, sluggish downstream demand, and seasonal slowdowns in construction activity. Market participants faced persistent headwinds as supply outpaced demand, further exacerbating downward price trends. 

The upstream Ethylene Oxide market, a key feedstock for Ethanolamine production, experienced bearish sentiment throughout December. Ethylene prices remained under pressure due to low trading activity and limited downstream margins, particularly in the spot market. The crude oil and futures markets offered little support, with prices exhibiting minimal changes and trading within a narrow range. Crude oil prices maintained a low operating level, providing no significant push for Ethylene prices to rebound. This weakness in raw material costs translated into reduced production costs for Ethanolamine, further pulling market prices downward. 

On the downstream front, demand from the construction sector, a major consumer of Ethanolamine, remained underwhelming. Earlier in the fourth quarter, China’s real estate market saw some short-lived improvements, driven by government stimulus policies designed to spur home-buying activity. Cities such as Nanjing recorded a 9% month-over-month increase in property transactions by November 2024, temporarily boosting sentiment. However, this rebound proved unsustainable, as demand for construction materials, including cement and related chemicals failed to gain momentum. 

The South Korean Ethanolamine market mirrored these trends, facing similar challenges. The construction sector experienced its seventh consecutive month of job losses, shedding 96,000 jobs in November 2024. Reduced construction orders, delayed infrastructure projects, and subdued investment weighed heavily on demand for construction-related chemicals, including Ethanolamine. Moreover, persistent economic pressures stemming from weak wholesale and retail activity amplified the bearish outlook, further depressing Ethanolamine prices. 

In conclusion, the Ethanolamine market in December 2024 reflects a complex interplay of weak fundamentals, subdued economic activity, and seasonal challenges. The near-term trajectory will hinge on potential adjustments in supply dynamics, economic stimulus measures, and any notable shifts in demand patterns. Until then, the market is expected to remain cautious, with prices trending lower amid a challenging trading environment. 

Looking ahead, As per ChemAnalyst, the Ethanolamine prices will likely remain under downward pressure in the near term in the Asian region. The weak Ethylene Oxide market, coupled with stagnant construction demand and seasonal slowdowns, will continue to weigh on market sentiment. While government stimulus efforts and infrastructure spending in China provide a glimmer of optimism, significant improvements in downstream demand are unlikely in the immediate future.