Demand Recovery in Pharmaceuticals and Agrochemicals Boosts Ethanol Amines Market

11 Dec 20242 Min ReadDaily Market Report

Ethanol amine prices increased by 1%, driven by rising downstream demand and feedstock cost hikes. MEA demand remains strong in pharmaceuticals despite reduced Ranitidine use. Ample supply and seasonal demand in agrochemicals and personal care sectors will stabilize the market in the near term.

Key Highlights

Price Updates: MEA at ₹110++/kg (ISO Tank) and ₹130++/kg (Barrel); DEA at ₹165++/kg and TEA at ₹164++/kg, with stable ammonia prices at $426/MT FOB Middle East.
Demand Trends: MEA sees strong pharmaceutical demand, while agrochemical and personal care sectors boost consumption.
Supply Insights: Domestic production at 12,500 MT annually, with 4,000-4,500 MT met through imports.
Market Dynamics: Seasonal demand and increased feedstock ethanol prices (+3.76%) drive price stability amid bearish sentiment.

Chemical Price Updates: Ethanol Amines and Feedstocks

Ethanol amines prices witnessed a nearly 1% increase this week, driven by a rise in downstream demand.
Importers are currently offering Monoethylamine (MEA) at ₹110++/kg (ISO Tank) and ₹130++/kg (Barrel) on an ex-Mumbai basis, with advance payment terms. Domestic manufacturers have also raised their prices, as reported by a prominent trader.
For Diethylamine (DEA), offers are at ₹165++/kg, while Triethylamine (TEA) prices stand at ₹164++/kg, both ex-Raichur for barrel packs under similar payment terms.
Feedstock ethanol spot prices rose by approximately 3.76% this week, supported by improved trade sentiment in the market.

US Ethanol Weekly Historical Prices

December 1st Week: $1.53/gallon
December 2nd Week: $1.58/gallon
FOB Ammonia Middle East Prices (Future Contracts)

Ammonia prices in the Middle East remained stable, as shown below:

December 1st Week: $424/MT
December 2nd Week: $425/MT

Chemical Supply and Demand Trends Across Key Sectors

Supply of ethanol amines remains ample, sourced both from domestic manufacturers and importers.
However, demand, though still subdued, has improved compared to November 2024, supported by increased production activity among bulk drug manufacturers. Buyers are refraining from building inventories due to bearish domestic market sentiments.
In the pharmaceutical sector, demand for MEA continues to be robust, driven by its application in Metformin production.
On the other hand, the withdrawal of Ranitidine in several markets has negatively impacted MEA consumption. Additionally, demand for APIs like Lidocaine, Diazepam, and Ethambutol showed a slight uptick in December compared to November, potentially influencing MEA demand in the near term.
In downstream sectors such as agrochemicals, personal care, and water treatment, demand improved in November and is expected to support MEA consumption through June 2025.
India’s annual demand for MEA is estimated at approximately 17,000 MT. Domestic manufacturers, such as Balaji Amines and Alkyl Amines, collectively produce around 12,500 MT, while the remaining 4,000–4,500 MT is met through imports.

Chemical Market News

Crude Oil: International crude oil benchmark prices rose marginally by 0.14%, settling at $68.68/barrel.
Natural Gas: Prices increased by 1.53%, reaching $3.21/MMBtu.
US ethanol prices climbed by 1.44%, now at $1.58/gallon.
FOB ammonia prices in the Middle East edged higher by $1, reaching $426/MT.

Expert Opinion: Market Stability and Seasonal Demand Drivers

Ethanol amine prices are anticipated to remain volatile in the near term, influenced by the uptick in downstream demand. Additionally, seasonal demand from the personal care and agrochemical sectors is likely to provide price support, lending stability to the market outlook.