As the Q2 of 2024 draws to a close, Ethanolamine prices have continued to surge in the global market during June 2024. The Ethanolamine prices showed an increase despite slow demand due to the low availability of stocks amid reduced production rates and high shipping costs. The input costs continued to rise in the Asian market due to rising cost pressure with rising upstream energy prices. From the supply perspective, the shipping companies cited the escalating complexity of the situation in the Red Sea and its ripple effects on global supply chains as the reason for the surcharge.

In Asia, despite hopes that the situation would improve, Ethanolamine market players in Asia continue to face additional challenges and costs, including longer journeys and increased sailing speeds to make up for delays, leading to higher fuel costs. Moreover, a consistent increase in the upstream crude oil prices also caused upward pressure on the Ethanolamine players for July 2024.

The OPEC basket price for crude oil reached USD 87 per barrel in the week ending July 5, 2024, marking a 1.2% increase from the previous week. Meanwhile, The recent conflict in the Middle East has resulted in attacks on commercial vessels, significantly reducing maritime activity. The Red Sea, a vital route for global container traffic, is now experiencing an unprecedented shipping crisis. Economically, this crisis has driven up freight rates and shipping insurance costs, fueling inflation and adversely impacting both regional and international shipping economies. Thus, the increase in Ethanolamine prices is attributed to prolonged reductions in production rates and container shortages in the Saudi market, further tightening supplies in Asia.

Ethanolamine prices in the US market increased during June 2024, primarily due to low inventories and higher selling costs amid rising freight charges in the export market. The approaching hurricane season has also brought industrial production in the USA to a halt, and floods have disrupted industrial demand for the product. Additionally, crude oil prices have surged to a two-month high, driven by optimistic demand forecasts and a reduction in US stockpiles, raising concerns about potential inflation. Seasonal severe weather patterns will also contribute to the increase in oil prices. Consequently, the anticipated rise in upstream cost pressures is likely to impact Ethanolamine prices in the coming weeks.

As per  ChemAnalyst, future focus on Ethanolamine prices will center on the terminal real estate market and capital conditions. In specific regions of the South China market, rainfall and steady demand have resulted in average shipment levels. Although supportive real estate policies have raised future demand expectations for Ethanolamine in Asia, the overall global market demand has not shown significant improvement.