High upstream volatility affecting Triethanolamine in the Global market

Triethanolamine in Saudi Arabia witnessed a rise of around 1.5% by the end of April 2022. Saudi Arabia is the largest producer of Triethanolamine globally, which usually drives the global pricing dynamics for the product. Further, this substantial hike was bolstered by a global rise in the natural gas costs, affecting feedstock Ammonia prices in the country. On the other hand, China have been battling with a sudden jump in pandemic cases in the country, pulling down domestic market sentiments for several commodities, including Triethanolamine in the country.

Meanwhile, demand fundamentals in India have been stable since the start of this month from downstream pesticides manufacturers, owing to firm demand from the seasonal crop (Rabi season) in the country. In India, a hike of around 2% was observed during April 2022, while a further 1%-2% hike is projected in the coming couple of weeks, under the expectation of high demand from the Zaid season. 

Discussion for Triethanolamine in USA and Europe also remained buoyant due to soaring upstream value. Since the time the Russia-Ukraine conflict started, the global crude oil and natural gas values have climbed up, and no significant ease has been observed since then. The USA has been facing multiyear high natural gas costs, putting inflationary pressure on manufacturers, compelling them to keep on revising their offers to sustain profitability.

However, the actual cost pressure has been bearing by consumers, where pesticide manufacturers are increasing their product prices, while the government has the pressure to control food inflation in the country. The USA is one of the largest manufacturers of Triethanolamine. Thus, a marginal hike of around 1.4% was observed for the local market this month, while traders are ready to negotiate with the prices bulk purchases to sustain offtakes from niche buyers, as the Russia-Ukraine conflict has already hampered trade activities across the US and European markets.

Owing to high volatility in the global market under the influence of Russia-Ukraine conflict and recovering global economies from pandemic related uncertainties, Triethanolamine price has kept on rising since the start of this year. ChemAnalyst data shows consistent price increments for Triethanolamine across the Middle East, Asia, and North America during the past couple of months due to high upstream value.