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.