Falling Feedstock Costs Lead Triethanolamine Prices to Nosedive in the USA and Europe
- 30-Jan-2023 12:29 PM
- Journalist: Robert Hume
The Triethanolamine market in USA and Europe observed low prices in recent weeks as the festive season in the last month and the Lunar New Year festival in January 2023 have reduced the demand for the product in the international market. In Europe, under the influence of easing upstream Natural Gas and feedstock Ammonia prices, the price of Triethanolamine fell in the market. Whereas in the USA, From December 21 to 26, 2022, a historic extratropical cyclone was created. A winter storm pummelled the USA with blinding snow, and powerful Arctic winds left 1.7 million customers without power in the last week of December 2022 and affected the country's demand and supply chain activities.
A sharp decline in prices of Triethanolamine of around 15% was observed in the US market in December 2022, owing to several factors that contributed to this price fall like the price of feedstock Ammonia in the US market fell by 6.7% during this timeframe, the domestic market witnessed muted demand from downstream industries as consumers have been opting for the wait and see tactic in order to halt losses.
In Germany, feedstock Ammonia and Ethylene Oxide prices declined by 16.2% and 11.5% in December 2022. Consequently, the prices of Triethanolamine fell by 20.5% in Germany, France, and Belgium in the meantime. Falling natural gas prices due to lessened energy needs this winter season remained the major factor behind the fall in Ammonia prices.
According to ChemAnalyst, the price of Triethanolamine in the USA and Europe may increase in the upcoming weeks owing to the expected rebound in demand for Triethanolamine from domestic and international markets. After the Lunar New year holidays, a temporary shortage of feedstock as well as the product might appear, which will impact the prices of the commodity in the overseas market. Additionally, the Prices of Feedstock ammonia may also increase in the upcoming week because of the seasonal rise in demand from the fertilizer sector, which may affect the price of Triethanolamine in the USA and Europe.