In the European market, the price of Diethylenetriamine (DETA) exhibited a notable increase in June. This surge in the DETA price can be primarily attributed to the proactive actions of suppliers who are accumulating inventories. Despite the lower demand observed in the downstream market, where end-users are purchasing less DETA, and despite the favorable conditions for lower prices in the upstream feedstock markets, the overall inventory management in Europe has faced significant deficits. These deficits have driven suppliers to build up their stocks in anticipation of future demand or potential supply chain disruptions. Consequently, this accumulation strategy by suppliers has led to a bullish trend in DETA prices in the European market, contrasting with the softer demand and advantageous feedstock pricing conditions.

In the European market, particularly Germany, the price of the DETA witnessed notable increment in June. In the feedstock market, the price of the Ammonia continued to showcase bearishness due to lower demand from the downstream market and the weak supplier’s action of accumulations. While Ethylene Dichloride marked an upswing of 5.7% in the continuous destocking trend. The European Commission is initiating an anti-dumping investigation into Epoxy Resin imports from certain regions, including China, the Republic of Korea, Taiwan, and Thailand. This investigation follows a complaint filed by the Ad Hoc Coalition of Epoxy Resin Producers, indicating potential dumping margins ranging from 10% to 170%. China reportedly faces the highest alleged margins, underscoring the difficult market conditions for epoxy resins in Europe. This situation has subsequently influenced the demand for Diethylenetriamine (DETA), used as a curing agent in epoxy resins. However, lower demand from the agriculture sector has collectively driven DETA demand downward.

In the textile sector, recent reports indicate a 1.6% decrease in exports and an 8.7% fall in imports in May 2024 compared to May 2023. Additionally, the DAX Pharmaceuticals & Healthcare (CXPPX) performance reflects underperformance in the German pharmaceutical sector. Despite the overall downturn in downstream market demand, price actions indicate that after significant destocking over the past year, market participants are now aggressively accumulating inventories. This shift has led to an uptrend in the European DETA market over the past few months. As of this month, the price of DETA in the German market stands at 4300 USD/MT FD-Hamburg.

As per the ChemAnalyst, the price of the DETA is expected to showcase bullishness in the upcoming sessions. This bullishness in the DETA aligns with the supplier’s activeness in the inventories managements. The expectation of improvement in the demand from the downstream market along with the positive accumulation activities will play a significant role in the DETA price fluctuations in the upcoming sessions.