For the Quarter Ending June 2021
Supply in the North American region improved in comparison to the previous quarter as refineries that were previously affected by the polar storm resumed production. With improvement in operating rates the supply chain restored, however diversion of upstream commodities to manufacture other derivatives curtailed the supply of Triethylamine by significant margins. Demand remained firm from the downstream pharmaceutical sector. Consequently, Eastman Chemicals surged the prices of Triethylamine and its derivatives in April starting. Overall, pricing trend in the North American region was stabilized after a marginal gain in the second quarter of 2021.
During the second quarter of 2021, supply in the Asia Pacific region remained balance to tight following upstream plant turnarounds in April and May, which curtailed the availability of the key feedstocks in Northeast Asia and China. Whereas in the later half buyers in China were reluctant to procure high-cost feedstock amidst the rising inflation rates of raw materials in China. Overall market sentiments remained mixed with the rise in demand of Triethylamine from the downstream, pharmaceutical industries. Margins of all alkyl amines manufacturers increased by manifolds taking cues from high feedstock cost and rising demand.
The supply outlook in the European region improved in comparison to the previous quarter but remained pressurized due to the restricted availability of upstream products. Backlog orders from the US flourished in the domestic market but diversion of the upstream products to manufacture other commodities put forth significant pressure upon the Triethylamine market in the European region. Demand remained firm from the downstream pharmaceutical sector leading to a marginal uptrend in the prices throughout the quarter.
For the Quarter Ending March 2021
North American Triethylamine market witnessed severe tight supplies due to the abrupt shortage of key feedstocks as the USA Gulf region was hit by the polar winter storm in mid-February. The regional industrial infrastructure collapsed as it could not withstand such low temperature. Due to adverse conditions, several major Triethylamine facilities were forced to shut the production including Dow and Eastman Chemicals. Demand in the region skyrocketed from various end use sectors, especially pharmaceuticals. As a ripple effect of short supplies and steep rise in raw material prices, several spot buyers became more flexible towards overseas suppliers due to safeguard their margins.
Demand in the Southeast Asian market bolstered from the pharmaceutical sector as the enquiries for Remdesivir injections surged following another deadly wave of COVID is several parts of the region, especially India. Consequently, Triethylamine CFR JNPT (India) prices settled at USD 2328 per tonne in March. Supplies remained tight taking cues from the shortage of key feedstocks, and trade activities were hampered due to the congestion along prime trading routes followed by the steep rise in shipping and freight costs. Inventory level in China depleted as several producers halted their production during the Chinese Lunar New year holidays.
Supplies in the European region remained sluggish due to the reduced overseas shipments from the USA following bad weather conditions. Besides, hindrance in transportation of key feedstock ammonia and reduced plant operating rate amidst severe cold weather in the Northwestern Europe also impacted the regional supply fundamentals. Demand kept a firm stance in the European market due to the constant offtakes from the downstream pharmaceutical sector. Arbitrage window between the APAC and Europe regions were hampered in the quarter ending due to the Suez Canal blockage.
For the Quarter Ending December 2020
Post COVID-19 improved industrial activities also supported the demand of Triethylamine across the Asian markets. Demand for Triethylamine from the pharmaceutical sector significantly improved prompting healthy growth in prices. Meanwhile, the prices of feedstock Ammonia and Ethanol were also rising due to strong demand from the agrochemicals and petrochemical industries. Till November, the prices of feedstock raised to its highest which and in December, satisfying supply retreated the price curve back to Q3 levels again.
During Q4 2020, the demand forTriethylamine remained stable and the FOB prices faced slight downward trajectory. The price of Triethylamine in USA went down from USD 1750/tonne (October 2020) to USD 1550/tonne (December 2020), due to stable demand but improved feedstock supply. Amid rising demand of feedstock Ethanol from the sanitizer manufacturing and pharmaceutical sector, supply towards Triethylamine production remained firm. Post pandemic, several Ethanol manufacturing units started their operations, and were trying to push for pre-pandemic sales again. Meanwhile LLC updated about their latest Ammonia manufacturing unit, which is very closed to be completed. This will improve the supply crisis of Ammonia across the region.
Amid rapid spread of COVID-19 during Q4 2020, industrial activities remained low and hence the shortage of feedstock chemicals elevated the price of Triethylamine. FOB price of Triethylamine in Belgium rose from USD 1740/tonne (October 2020) to USD 1940/tonne (December 2020). The reason behind the rise was lower imports of the feedstock materials and restricted movements amid second wave of COVID-19 infections. The demand of Triethylamine remained firm throughout the quarter.