US Triethanolamine Market Stabilizes, Dow Chemical's Price Rise Could Ignite Bullish Trend
- 06-Sep-2023 2:04 PM
- Journalist: Bob Duffler
The Triethanolamine (TEA) market in the US was declining week by week in August, while during this week, the market admitted overall stability under the influence of the feedstock prices. However, the outlook seems upbeat after the announcement of Dow's Chemical to increase the posted prices of several commodities, including TEA.
The demand for TEA is driven by several industries, including the growth of the construction, automotive, and the personal care industry. However, the US downstream construction and engineering industry has remained flat in the given timeframe due to uncertainty in the global economy. TEA consumption within the domestic market has been minimal as a ripple effect. However, after witnessing weeks of a downtrend, the TEA market in the United States has finally stabilized under the influence of the surrounding markets to settle at 1064 USD/tonne CFR New York (USA) and 1263 USD/tonne FOB Texas (USA) respectively during the week ending of August 2023. The feedstock Ethylene Oxide and Ammonia remained steady during this timeframe, which supported the price trajectory. The overall supply chain activities in the region have been seamless, with no major supply-related concerns.
According to data from the Federal Reserve Bank of St. Louis, the Producer Price Index (PPI) for the cement and concrete industry increased by 0.6% in July. However, it is expected to decline in August. This is due to the contraction of the manufacturing sector for the downstream cement industry in the United States. As a result, the consumption of TEA in the domestic market has also declined, and the demand from the international market has remained subdued. Moreover, no new inquiries from Germany have been made in the given timeframe as the downstream construction industry was performing lower than anticipated.
On the contrary, the announcement by Dow Chemical to increase the posted prices of TEA is a significant development that could have a major impact on the market and could change the suppressed outlook of the TEA market. The increase in prices could lead to increased demand for TEA, as buyers may try to secure the product before rising. Moreover, the price increase could also lead to higher profits for TEA producers, which could encourage them to increase production.
As per ChemAnalyst, the outlook for the TEA market in the United States is uncertain. The market is currently stable, but the announcement by Dow Chemical could lead to changes in the market dynamics to showcase a bullish trend. It is important to monitor the situation closely to see how the market reacts to the increase in prices.