Global MEA Triazine Market Faces Price Decline Amidst Reduced Oil and Gas Production

During July 2023, the prices of MEA Triazine experienced a significant decline due to reduced demand from the oil and gas industries. These sectors typically use MEA Triazine as a hydrogen scavenger to remove hydrogen sulfide. However, the market for MEA Triazine was further impacted by an announcement from Saudi Arabia and Russia about cutting crude oil output by 1.5 million barrels. This move weakened the demand for MEA Triazine as well as its role as a hydrogen scavenger. The ChemAnalyst database has shown that the price of MEA Triazine plummeted by 4%, with prices hovering at USD 2700/MT CFR Shanghai.

The MEA Triazine market experienced a major price reduction due to weak demand from the downstream oil and gas sectors. The price downturn can be attributed to the decreased activity in the downstream oil and gas industries, which grappled with a combination of factors, including volatile crude oil prices. The voluntary cut in oil production initiated by the Organization of the Petroleum Exporting Countries (OPEC) and its allies further complicated the situation. This move kept crude oil prices at higher levels and impacted the demand, ultimately decreasing MEA Triazine's necessity to eliminate hydrogen sulfide and other impurities from hydrocarbon streams. The decrease in oil production directly correlates with a reduced volume of oil and gas that is transported through pipelines and refined in processing facilities. As a result, the formation of hydrogen sulfide would also reduce due to the decreased flow of crude oil and natural gas. 

The price for Monoethanolamine (MEA)  was also down during the month, owing to the low price of ammonia, a crucial feedstock used in the production of MEA. This reduction in the cost of MEA subsequently affects the production cost of MEA Triazine. On the other hand, Saudi Arabia had a strong supply of Monoethanolamine, and the Chinese market experienced smooth triazine production. Additionally, the reduced demand from the downstream oil and gas sectors had resulted in an oversupply of MEA Triazine in the market. This oversupply, coupled with weaker demand, had led to downward pressure on prices, affecting suppliers in the industry.

In Conclusion, ChemAnalyst Forecasted the price trend for MEA Triazine to continue its downtrend, as Saudi Arabia is likely to extend a 1 million barrel per day voluntary crude output cut into August-September, the state-owned Saudi Press Agency confirmed. Therefore, reducing crude oil production is anticipated to reduce the demand for hydrogen sulfide scavengers such as MEA Triazine.