2-(2-Aminoethoxy)ethanol

Diethanolamine Market Dynamics Intelligence, Analysis & Forecast

I. Market Dynamics Intelligence
(A) Price Information
- Diethanolamine: As of June 25, 2026, Shandong Jinyueyuan New Materials Co., Ltd. quoted RMB 38,000.00 per metric ton for 98% purity diethanolamine, with a minimum order quantity of 1 ton, inventory of 100 tons, and delivery within 3 days.

(B) Supply Situation
- Plant Operations: In July 2026, supply of diethanolamine’s upstream raw material—diethylene glycol (DEG)—exhibited significant volatility. East China’s main port inventories hit a historic low: as of July 13, DEG port stocks in East China stood at only 4,300 metric tons, down 2,300 metric tons from the previous reporting period. This sharp inventory contraction stemmed primarily from typhoon-related disruptions—delayed loading/unloading of near-sea and Zhejiang-origin cargoes, postponed vessel arrivals, limited import arrivals, and uncertainty surrounding maritime passage through the Strait of Hormuz. Additionally, planned maintenance shutdowns at Shenghong Petrochemical and Hengli Refining & Chemical further curtailed domestic supply. However, these outages are partially offset by restarts at CNOOC Shell and Gulei Petrochemical; thus, the net impact on domestic supply warrants close monitoring.
- New Capacity: BASF Zhanjiang’s new 80,000-ton-per-year capacity successfully completed trial operation in November 2025; however, as of July 2026, its tangible impact on the diethanolamine market remains unclear.

(C) Demand Situation
- Downstream Applications: Diethanolamine is widely used in surfactants, desulfurization agents, catalysts, electronic chemicals, wetting agents, metalworking fluids, and acid gas absorbents. In the catalyst sector, DEA-based polyurethane foam catalysts are in strong demand for manufacturing rigid and high-resilience polyurethane foams. In metalworking fluids, DEA imparts antioxidant and corrosion-resistant properties; such fluids can be applied as protective coatings on metal cutting tools. Nevertheless, downstream demand for its upstream feedstock—diethylene glycol—remains relatively stable: polyester and unsaturated polyester resin producers maintain steady operating loads and procure raw materials on an as-needed basis. As of July 9, the national average operating rate at unsaturated polyester resin plants stood at 32%, down marginally by 1 percentage point week-on-week; daily shipment volumes at two Zhangjiagang warehouse zones averaged approximately 300 tons—indicating lukewarm demand.

(D) Regional Market Conditions
- Regional Price Spread: As of July 14, 2026, the mainstream spot price for diethylene glycol in East China was RMB 9,330 per ton, while the South China market closed at RMB 7,900 per ton—widening the inter-regional spread to nearly RMB 1,500 per ton, thereby creating substantial cross-regional arbitrage opportunities. Tight spot supply and surging prices in East China contrast sharply with falling prices in South China—driven by divergent regional supply-demand fundamentals and local plant restarts.

II. Analysis & Judgment
(A) Supply Side
- Short Term: Supply constraints for upstream diethylene glycol—triggered by typhoon disruptions, constrained imports, and plant turnarounds—are unlikely to ease imminently, providing ongoing support to diethanolamine pricing. However, Zhangjiagang is scheduled to receive 7,050 tons of DEG during the week of July 14–20; if vessel schedules proceed normally, this inflow may alleviate DEG tightness and exert modest downward pressure on diethanolamine prices.
- Long Term: The commissioning of BASF Zhanjiang’s new capacity—if fully ramped up—will increase overall market supply, potentially intensifying competitive pressures over time. Concurrently, geopolitical uncertainties—including U.S.-Iran tensions—pose risks to import reliability: escalation could further tighten supply, whereas de-escalation and increased imports would ease supply constraints.

(B) Demand Side
- Current downstream demand for diethanolamine remains broadly stable, albeit with sector-specific variations. Catalyst applications show robust growth—providing notable demand support—while other end-use segments continue procuring on a just-in-time basis without marked expansion or contraction. Going forward, healthy development in key downstream sectors—such as polyurethane foams and metalworking—would lift diethanolamine demand; conversely, industry slowdowns would dampen demand.

(C) Regional Markets
- Divergent supply-demand structures between East and South China have generated pronounced price differentials and viable cross-regional arbitrage. Such disparities may incentivize traders to engage in inter-regional arbitrage, helping rebalance regional inventories over time. However, the wide spread is likely to persist in the near term.

III. Forecast
(A) Price Trend
- Short Term: Supported by upstream DEG price strength amid typhoon impacts and critically low port inventories, diethanolamine prices are expected to remain firm. However, timely arrival of the scheduled DEG shipments during the week of July 14–20 could trigger a short-term correction from elevated levels.
- Long Term: Gradual ramp-up of new capacities and resolution of supply-side uncertainties will likely expand market supply, pushing prices gradually toward a more rational equilibrium range. That said, a material acceleration in downstream demand—e.g., from macroeconomic recovery or sectoral expansion—could sustain or even elevate price levels.

(B) Supply-Demand Outlook
- Supply: Future diethanolamine supply will reflect the combined effects of new capacity commissioning and periodic plant maintenance/restarts. While new entrants augment overall output, operational disruptions and external uncertainties may cause intermittent volatility. Overall, supply is projected to trend upward gradually.
- Demand: Downstream demand will evolve in tandem with macroeconomic performance and sectoral health. Sustained macroeconomic growth and robust industrial activity would foster steady demand growth; conversely, economic headwinds or sectoral setbacks would suppress demand. In the long run, supply-demand balance is expected to improve progressively—though short-term imbalances—both surplus and shortage—may still occur.