Slow Offtakes Affect US Triethanolamine Prices Entering September 2022
- 02-Sep-2022 5:41 PM
- Journalist: Patricia Jose Perez
The ongoing market disturbances in the USA have been a major concern for the country for the past several weeks. The data shows a consistent fall in prices of Triethanolamine in the US market, which maintained its fall until the first week of September 2022. The assessment shows a decline of around 2.2% during the last two weeks in the domestic market.
Data shows that feedstock Ammonia and Ethylene Oxide prices have also witnessed a similar price trajectory, where Ammonia and Ethylene Oxide have tumbled by around 3.3% and 3% in a similar timeframe.
The US market has been under the threat of recession for a long time, looming across the domestic market and making the market tenser. As per the insights, the US Purchasing Manager Index declined during the month of August 2022, which is an indicator of slowed economic activities.
Previously, major economists predicted slow economic growth for the USA when the country's central bank announced a revision in lending rate. However, this decision was taken to curb huge inflationary pressure on consumers. Thus, under the influence of feeble offtakes from the downstream construction sector, Triethanolamine prices started tracing a downtrend during mid-June, which continued until the first week of September 2022 in the USA.
However, the upcoming winter season has also started bothering domestic Triethanolamine market players, as it would further affect the natural gas prices in the country. Any significant pickup in natural gas value would eventually affect the feedstock Ammonia prices and manufacturing costs.
As per the ChemAnalyst analysis, the state's global slowdown in demand for Triethanolamine, which has affected the prices of the product in the US market, may not remain persistent for a further period in the market. Further, despite slow demand from the domestic market, escalating energy prices may affect the product's price in the coming months.