Contrasting Market Fundamentals Push Down Triethanolamine Prices in the US and Europe, But Rises in India
- 22-Jun-2023 5:31 PM
- Journalist: Sasha Fernandes
A recent assessment shows that the Triethanolamine prices in the global market showcased mixed sentiment during May 2023. As per the data, Triethanolamine prices rose in the APAC region (except India), while Europe and the USA experienced an overall bearish market sentiment.
The USA, being the largest exporter to European countries, has experienced a decline of around 5.2% to settle at 1251 USD/tonne. The US-European market is heavily driven by feedstock prices, prompting reduced costs. Ammonia and Ethylene Oxide are the major feedstock required to produce Triethanolamine. By the end of May, Ammonia pricing in the USA fell to 476 USD/tonne FOB down from 547 USD/tonne in April respectively, which was caused due to the end of the spring planting season, following the main demand to shatter in the late April. This has affected the demands in the fertilizers industries, resulting in a downtrend of feedstock prices. Moreover, the US economy is falling apart, which would contribute to the slower demand for products because the drop in feedstock prices has affected the markdown prices of Triethanolamine.
On the other side, in Asia, the China Triethanolamine market has experienced a rising trend for the month of May 2023 with 7.5% to settle at 1027 USD/tonne CFR in China amidst rapid demand. Additionally, India’s domestically traded prices have declined based on enough availability and lower demand for Triethanolamine in May 2023. However, the pricing trend has been fluctuating in India due to the low demand fundamentals of the product.
The cosmetic and personal care market mainly consumes Triethanolamine. The Asia Pacific cosmetic market is one of the exponentially growing markets across the world. In order to maintain the high beauty standards and rising competitive consciousness amongst youngsters and adults, including men and women mainly in Asia, influencing the demands for cosmetics. This has affected the production and growth of the Asia Pacific cosmetic market, increasing the demand for Triethanolamine and resulting in higher prices. Due to the high demand in the exporting as well as importing nations, the price for Tri- Ethanol Amine was found to be increasing in the Malaysian market, which settled at 1013 USD/tonne.
As per ChemAnalyst, the Asia-Pacific Triethanolamine prices are expected to boost till the end of July 2023 as growing demand for the product in the Asian cosmetic market. However, in the next two months, the product prices in the US-European market may fluctuate a bit, revolving around the current estimation.