Rising Concern Over Omicron Spread is Restraining Procurements of Triethanolamine in India
- 10-Jan-2022 5:27 PM
- Journalist: Jai Sen
Despite, bounce back of construction sector, Triethanolamine (TEA) price declined in Indian market under the threat of rapidly spreading Omicron variant. Procurers are restraining themselves from further procurement as any sign of movement restrictions may mute offtakes from downstream sectors. Furthermore, traders are also applying wait and see approach in order to optimise their profitability.
Triethanolamine has wide range of applications, while as an additive in construction sector is one of them. During December, construction sector witnessed a much-needed revival after prolonged dullness due to extended monsoon season in India. However, there were several other factors which also influenced Triethanolamine pricing dynamics across regional market, including sudden surge in freight cost and rising feedstock prices. High demand for feedstock ammonia from downstream fertilizers segment pushed up its price in global market, affecting price trend of other derivative products including TEA.
As per the analysis, freight cost witnessed a sudden jump due to unforeseen rebound in construction sector, which ramped up production activities of steel and other construction linked industries. This production hike eventually boosted trading activities and led into a significant hike in freight cost. However, Omicron threat has induced uncertainties on the ground and traders are now restraining themselves from procuring more cargoes.
As per ChemAnalyst analysis, TEA prices are expected to remain dull for whole January across Indian market, as domestic market is anticipating further movement restrictions. However, rising feedstock and freight cost injects some possibilities of dynamic change. Furthermore, major players are concerned with performance of downstream sector, as their performance will ultimately act as a decision maker for future price trend of TEA in India. However, ChemAnalyst has also predicted rebound in prices for February month, as Chinese market will go on holidays on the occasion of winter Olympics and lunar new year.