Quarterly Update on Global Triethylaluminium (TEAL) Market
For the Quarter Ending June 2021
Prices of Tri-Ethyl Aluminium (TEAL) rebounded this quarter, backed by improved offtakes from the downstream sectors. The demand for Tri-Ethyl Aluminium improved after resumed plant operations in US Gulf Coast. Several polymer plants resumed their operations to produce major polymers like LDPE and LLDPE during this quarter, which improved the offtakes for TEAL as a catalyst in the process. However, initially during April demand remained low, as manufacturers were analysing damages on their plants, which affectively improved week over week in the country.
The overall consumption of Tri-Ethyl Aluminium (TEAL) remained firm throughout the quarter, backed by firm offtakes from the regional market. In China, prices remained firm in these three months, as the production remained stable, in effect of rising domestic demand after sharp economic rebound. Meanwhile in India, prices declined in May due to rapid surge in pandemic cases which reduced the overall consumption of polymers in the country. Therefore, price of TEAL declined in the month of May and later rebounded effectively during June in India, eventually settling at USD 4852/MT in June 2021.
European market witnessed stable demand for Tri-Ethyl Aluminium during this quarter, backed by stable offtakes from the regional polymer market. Despite of shortage of raw materials and halted production activities, demand for Teal maintained overall stability throughout the quarter, while the prices also remained stable and overall buoyancy was observed. However, other global factors like rising production cost and surging freight cost also influenced the market price of Tri-Ethyl Aluminium across the region during Q2 2021.
For the Quarter Ending March 2021
During this period, demand for several petrochemicals either major upstream or downstream, showed substantial growth, but tight supply supported the regional prices. Globally, the demand for TEAL wasn’t very high Y-o-Y, but supply constraints created an environment of shortage and effectively raised its prices. After freezing weather cast spell across the US Gulf coast, several Ethylene plants faced force majeures, that reduced the availability of the feedstock. Overall, the prices of TEAL showed significant improvement during this timeframe across the region, pushing buyers to make purchases only on need-to basis.
Buoyant demand from LLDPE manufacturers as packaging sector zoomed over the quarter, boosted the regional demand for TEAL during Q1 2021. Post lunar new year holidays, price of upstream Ethylene took a sharp upturn, which affected the prices of downstream chemicals including TEAL. The key reason behind the price rise was stated as tight regional supply after major PE plants went for turnarounds staring from mid-February. Limited availability of containers also pushed up the prices of almost all major petrochemical products, thereby sending ripples to the prices of TEAL which showed prominent growth in the Indian market and hovered around USD 4638.6/MT during March 2021.
Demand for TEAL across the European countries remained in a narrow range, as the second wave of COVID 19 left significant impact on the downstream markets. However, the prices showed a positive growth throughout the quarter, since the shortage of upstream Ethylene translated its impact in the global market. Downstream sectors showed firm improvement after February, post the successful vaccination rollout across the region.
For the Quarter Ending December 2020
Post COVID-19 recovery enhanced the sentiments in the Asian TEAL market during Q4 2020. Major olefins manufacturers were heard increasing the domestic prices every week. Recovered industrial and domestic activities were effectively increasing the demand of LLDPE, HDPE and other plastics which led to inclination in the prices of TEAL. The price of TEAL rose from USD 4401.9/tonne (October 2020) to USD 4511.9/tonne (December 2020) in India. In addition, China and Thailand also reported great recovery in the domestic LDPE market which led to healthy rise in demand of TEAL.
In the European market, tight Ethylene supply uplifted the prices of downstream derivatives like TEAL, PE, LLDPE, HDPE etc. Healthy recovery in demand for olefins from the consuming industries and households also boosted the product prices till October 2020. Tight supplies occurred in effect of unplanned shutdowns amid surging COVID 19 cases which maintained somewhat uncertainty over the market outlook. During December, significant shortage in supply of the feedstock Ethylene halted the manufacturing of TEAL and other derivative prices across the region.
Production of TEAL remained hard hit in the first half of the quarter as multiple hurricanes led to unplanned turnarounds on Polyethylene production units at the US gulf coast region. These shutdowns halted the feedstock Ethylene supply and eventually of TEAL which contractors sought to produce ethylene derivative plastics. Meanwhile, the export demand of plastics from the US to several Asian countries was seen rising that lent support to the prices of TEAL. Later in December, the pace of price acceleration decreased and slowed down to stagnate due to year end market lull.