For the Quarter Ending June 2022
The US market has long been under intense inflationary pressure, and the government has responded by taking the required action to reduce inflation. Analysis reveals that the nation began moving toward stagflation conditions, which would be bad for the nation's economic growth. According to ChemAnalyst statistics, the price of triethanolamine increased by 0.5% in the middle of Q2 2022. Additionally, the US has begun to increase its natural gas shipments to Europe due to Russia's supply-side announcement. As a result, amid rising natural gas exports, the price of ammonia feedstock rose on the domestic market.
Due to shifting market dynamics, this quarter saw various ups and downs in the Asian market. Due to trade disruptions and expensive imported cargoes, triethanolamine prices in China showed a considerable increase of almost 2.3 percent in April. However, the product's core demand dynamics remained range-bounded because of the prolonged COVID crisis, where millions of people were subject to severe lockdown restrictions throughout the nation. Additionally, a sizable price increase was noted in the Indian market due to increased upstream chemical costs and steady offtakes from niche consumers. As a result, the pricing dynamics for triethanolamine in the Asian market remained positive throughout the quarter.
Throughout this quarter, triethanolamine prices continued to rise on the German market. Germany has been severely impacted by the rapid escalation in the Russia-Ukraine war because it relied on Russian natural gas imports. Triethanolamine's price continued to rise due to high natural gas prices, increased inflationary pressure due to high crude oil prices, and trade disruption. According to the data, triethanolamine prices increased by about 1.7% and 1% in Germany and France, respectively, in May. Russia recently declared that it would be reducing its natural gas supply to Europe, which has already destabilised the market mood and boosted the pricing dynamics of many commodities.
For the Quarter Ending March 2022
Rising inflationary pressure-induced anxiousness among US-based manufacturers of Triethanolamine, as the prices of raw materials kept rising under the influence of fuming crude oil value. The geopolitical conflict between Russia and Ukraine turned into a war that stirred demand-supply dynamics with harsh diplomatic decisions taken by major economies, including the USA. As a consequent effect, upstream prices started tracing an uptrend across the global market, compelling manufacturers to revise their offers to sustain their margins. Meanwhile, construction activities in the country were also stable since the first week of January, which bolstered the overall pricing dynamics for the product in the country. Thus, post witnessing a consistent hike, triethanolamine price assessed around USD 2850/MT CFR basis during February.
Despite ongoing war between Russia and Ukraine and rising crude oil value, Triethanolamine prices declined marginally during January and February in India and China on the back of ample availability of the product amid modest to stable demand from the domestic market. As per market source, pricing dynamics for the product maintained overall stable throughout the month of February and a marginal fall in price trend was observed due to tough negotiations on bulk purchases. Meanwhile, in China, Triethanolamine prices kept on tracing downtrend throughout the quarter, owing to wavering demand fundamentals for the product from the domestic market coupled with rising pandemic related restrictions in China. China started facing pandemic since 2020, making it hard for domestic players to maintain offtakes from domestic as well as international buyers. Thus, under the influence of low demand amidst ample inventories, Triethanolamine price was assessed around USD 1490/MT in China during February.
On the back of modest demand fundamentals for the product from downstream sectors, the Triethanolamine price declined consistently in January and February in Saudi Arabia. Furthermore, a decline in raw material cost also remained a major reason behind the shortfall, which allowed producers to revise their offers on spot purchases. In addition, apart from domestic purchases, demand fundamentals from India also remained dull during this timeframe. Therefore, post witnessing a decline, Triethanolamine price was assessed around USD 1270/MT FOB basis during January. Meanwhile, Monoethanolamine prices also traced a similar trajectory due to ample availability in the country. However, demand fundamentals for the product maintained overall stability on the back of firm offtakes from the domestic detergent and personal care segment. Thus, post witnessing a marginal decline, Monoethanolamine price hovered around USD 1440/MT FOB basis in January.
For the Quarter Ending December 2021
Market remained bullish in last few months as prices of Triethanolamine increased on the back of increasing cost of raw materials and lack of significant inventories. Supply has improved since last quarter as feedstocks availability has risen after the lag in Q3. Demand from downstream sectors has been stabilized in comparison with previous quarters where market participants remarked that strengthening supply fundamentals have restored the balance of market dynamics. Furthermore, USA has been facing huge pressure of inflation due to rising crude oil value, which is not letting most of the commodity prices to ease down in the country. Conclusively, Triethanolamine price remained firm throughout the quarter in USA, which assessed around USD 3170/MT FOB during December.
Asian market showcased mixed sentiments for Triethanolamine during this quarter, which varied country over country. Downstream construction and surfactant sectors maintained stability throughout the quarter across most of the major economies of Asia. Later during December, significant hiccups was observed, as rising omicron threat was resisting traders from further procurements and prices started to see downtrend by the end of this quarter. Furthermore, in India, muted demand from the construction sector remained a major concern for producers, as construction activities remained dull during monsoon season. However, steep rise in freight cost and consistently rising raw material prices induced buoyancy to Triethanolamine price in India, which assessed around USD 1602/MT during December.
European market has been witnessing huge setbacks during this quarter due to several reasons. Unprecedented hike in energy cost remained a major event during fourth quarter in Europe. However, rebound in industrial activities was also remained a major reason behind any change in pricing dynamics across European market. Demand for Triethanolamine remained firm from the domestic downstream sector of UK and Germany, while high energy cost pushed producers to raise their prices on contract as well as spot purchases. Furthermore, high raw material cost coupled with significantly high freight charges also exacerbated the overall price trend for the product across European market.
For the Quarter Ending September 2021
During the third quarter of 2021, the prices of Triethanolamine rose significantly across the North American region. A hike in the prices of upstream Ethylene Oxide due to volatility in Ethylene supported the prices for Triethanolamine which were already volatile since the 2nd quarter. Demand fundamentals remain strong for TEA in Q3 with robust consumption volumes from the detergent segment. Furthermore, the construction sector along with the household sector formed the key application areas for TEA across the region. As of the 1st week of August, the price of Triethanolamine was settled at USD 2415 per MT FOB Texas.
The pricing trend of Triethanolamine witnessed a steep rise in the 3rd quarter of 2021 across the Asia Pacific region. Demand for Triethanolamine remained muted from Northeast China in Q3 due to tightened environmental controls by the Chinese government and the lack of downstream demand due to lower operational capacities. In other Asian countries, demand was still strong on tightened supply especially for the grade used in the personal care sectors. In the Indian market, prices kept on rising during the month of July, taking support from firming demand from the domestic market under limited availability. Upstream Ethylene Oxide and Ammonia prices were heard rising in the country during Q3 due to high demand under crippled supply activities, which supported Triethanolamine price. Thus, the price of Triethanolamine was last assessed at USD 1652 per MT during August.
Middle East Africa
In Q3 of 2021, the demand for TEA was slightly lower as buyers side-lined amidst surges in container freight in Middle Eastern countries. On the raw material front, the market of ethylene was collectively lowered while ammonia settled on an upper hand. FOB Jebel Ali offers were assessed at USD 1231/MT, down by about USD 56/MT over the levels seen in August. Triethanolamine shipments (for non-medicinal use) from Saudi Arabia exceeded 150 MT to India since the beginning of September. It was noted that shipments were priced lower over the August settlements.
For the quarter Ending June 2021
Prices of the Triethanolamine remained bullish in the North American region throughout the second quarter, taking cues from firm upstream Ethylene Oxide and Ammonia. The restoration in the industrial activities improved the supplies of Triethanolamine (TEA) while the raw material tightness persisted even in Q2 leading to marginal constraints in the availability of Triethanolamine. Dow increased the prices of its amine products multiple times in the second quarter of 2021. The company increased TEA offers by USD 60 per tonne in Q2. Triethanolamine demand was persistent from the downstream derivatives and offtakes surged for the household and construction sector as the economy revived. The monthly average of Triethanolamine surged to USD 2200 per tonne FOB Texas in June.
During the second quarter of 2021, TEA supplies in the Asia Pacific region was balanced to firm to meet the end user enquiries as the downstream operational rates rose significantly to meet the industrial rebound. Furthermore, the market situation was supported by improved exports to the overseas market. Market sentiments were robust from the pharmaceutical companies as the industry ramped up manufacturing amidst rising COVID-19 cases across the globe. Supply constraints heard across Asia further gave operating leverage to several Middle Eastern manufacturers.
In the European region, Triethanolamine (TEA) supplies were tight after the leading producer BASF announced turnaround at its Amines facility which is likely to last till first half of the next quarter. Some production hindrances were seen from the major producers in Russia. Market easiness was observed as imports volumes improved from the US as the suppliers improved operational rates amidst restoration in production. Demand was resolutely high as the offtakes observed a seasonal hike from the construction and household sector. Plant outages in the Middle East and in Asia affected the import availability.
For the Quarter Ending March 2021
The Triethanolamine market in the North American region was severely hampered as the unavailability and surging pricing of the feedstock hampered the domestic production of Triethanolamine as the plants were shut down amid the severe freeze weather conditions in the USA Gulf region. Firming Ethylene Oxide further added to the cost pressure. Demand surged as enquires from the personal care industry improved. Amid macroeconomic factors supporting the price uptrend, the price of Triethanolamine rose from USD 1750/MT in January to 1860/MT in FOB Texas in March.
Margins of almost all ethanolamine manufacturers increased by manifolds since the start of this quarter mainly due to surging demand from both the local and export markets. Strong gains in raw material EO pricing and some upstream plant turnarounds scheduled for maintenance have pushed up the price curve. Market sentiments were upbeat with rising enquiries from the pharmaceutical companies as the industry ramps up manufacturing amidst rising COVID-19 cases across the globe. Supply constraints were heard across Asia amid the bad weather conditions causing plant outages in US. Furthermore, logistic disruption along with hampered trade routes concerned compelled buyers to purchase cargoes even at high premium prices to abate the demand from the downstream sector. Due to the demand-supply gap widened Triethanolamine prices in India by USD 336/MT withing the quarter.
The European Triethanolamine market was severely impacted during the first quarter of 2021, as a couple of major suppliers to the region in Middle East were on a turnaround, followed by the reduced imports from the USA amid winter storms. Further tightness was uplifted due to low operating rates at one of the major production facilities in the region. Demand segment was balanced throughout the quarter as the resurgence of COVID made people more cautious about the regular hygiene which led to the strong offtakes from detergent segment and strong consumption from the cosmetics sector.
For the Quarter Ending December 2020
With major manufacturers like Xian Lin Chemical & Jiangsu Yinyan Specialty Chemicals in China operating at maximum plant efficiency, supplies of the Triethanolamine remained healthy, throughout the fourth quarter of 2020. Meanwhile, the demand witnessed a significant improved uptrend economy started to recover after the wase in Covid-19 restrictions followed by the increased industrial and commercial activities across the region. With TEA being a major industrial solvent, traders and buyers were heard mounting up their inventories amid supply concerns and surging downstream demand. All the sectors re-opened fully or partially including construction.
During the Q4 of 2020, supplies remained constrained, as the imports in the region were hindered by planned outage caused due to spate of hurricanes in the US Gulf region. BASF’s Ethylene Oxide (EO) plant in Antwerp (Belgium) underwent a scheduled turnaround which resulted in its shortage in the regional market. Meanwhile remained mixed in Europe, with imposition of a partial lockdown to curtail the stress of new coronavirus. Although the construction industry witnessed an uptrend with improved consumption of TEA.
Triethanolamine availability in the domestic market remained low during Q4 2020, due to several trade barriers and scheduled turnaround in several plants of feedstock Ethylene Oxide in US1w. Meanwhile the exports of Triethanolamine were hampered due to the supply disruptions caused by spate of hurricanes in the Gulf region. In December, net purchases of TEA and its salts reached USD 560 thousand amidst its favorable demand from downstream industries.