Diethanolamine, as one of the important raw materials in the production process of glyphosate, its price trend directly influences the fluctuations of glyphosate price, according to CCM. In 2015, both the prices of diethanolamine and glyphosate records declines, forming a vicious circle.
Diethanolamine is one of the important raw materials in the production process of glyphosate. Therefore, its price determines the price of glyphosate. Iminodiacetic acid is produced by diethanolamine and then reacted to glyphosate.
According to price monitoring of CCM, in H1 2015, the average market price of diethanolamine presented upward trend. However, the price continued dropping in H2 2015. In June, the market price was USD1,855/t, up 13.73% when compared to USD1,631/t in Jan. 2015 while down 5.60% when compared to June 2014. Accordingly, the average price of glyphosate TC showed declines in H1. Fortunately, the price drop was not large.
Since the market price of diethanolamine is one of the constituent parts of glyphosate's production cost, it can slightly support the glyphosate price to some extent.
Nevertheless, in H2 2015, the average market price of diethanolamine starts to slum, further dragging down the price of glyphosate TC. In Dec., the average market price of diethanolamine is USD1,389/t, down 25.12% when compared to June 2015 and down 25.92% year on year, sourced from CCM. As a result, the average ex-works price of glyphosate TC is USD2,943/t in Dec., down 26.37% year on year. Compared to H1 2015, the figure reports a larger drop in H2.
In fact, the price reductions in diethanolamine and glyphosate TC form a vicious circle. Firstly, the price drop of diethanolamine cannot support the production cost of glyphosate, resulting in a further fall in glyphosate price. Secondly, the declining glyphosate TC price also affects the price of its raw materials. In particular, manufacturers will reduce purchasing diethanolamine when the market demand for glyphosate remains slack. This puts pressure on the sales of diethanolamine in China, driving down the diethanolamine price further. In such cases, the prices of diethanolamine and glyphosate TC will be dragged down by each other.
At present, China's diethanolamine is mainly imported from other countries. Affected by the further devaluation of RMB, it is predicted that the average market price of diethanolamine would not greatly decline in a short run. In the near future, the stable diethanolamine price will help stabilize the glyphosate TC price if other effects are neglected.
Monthly market price of diethanolamine in China in Jan. 2014-Dec. 2015
Ex-works price of 95% glyphosate TC in China in Jan. 2014-Dec. 2015
If you would like to know more about the diethanolamine market, you could have a look at our product: Glyphosate China Monthly Report.
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.