Global TEA Prices Fall in November 2024 Due to Weak Demand and Stable Supply Chains

During November 2024, Triethanolamine (TEA) prices exhibited a downward price trend across the global market, shaped by regional economic conditions, supply chain dynamics, and eased upstream cost pressure. Moreover, slowed downstream cement manufacturing demand led to the ease in the TEA prices.

In Asia, TEA prices remained stable, supported by resilient demand in key importing markets such as China and India. China’s Shandong province introduced winter pollution controls on cement production starting November 15, potentially dampening TEA demand in the region. Meanwhile, stabilized Ethylene Oxide prices helped keep input costs steady for TEA producers. Additionally, China’s factory production rebounded in October after a period of contraction, offering a boost to market sentiment in mid-November. Meanwhile, procurement activity across the region remained muted, with Japanese and South Korean producers reporting reduced input purchases, signaling economic weakness in these economies. These factors collectively balanced out, keeping TEA prices steady in the Asian market. 

In the USA, TEA prices faced downward pressure, declining by approximately 0.7% over the mid-week of November 2024. This was attributed to softened production costs and weak downstream demand. The U.S. cement sector saw a marked decline in procurement activity, reflecting preparations for reduced production volumes in November 2024. Stable energy prices and subdued raw material demand, combined with lower feedstock Ethylene Oxide and upstream Ethylene values, further contributed to the price drop. The export market also experienced weakened demand, exacerbating the downward price trend. 

TEA prices in Europe followed a declining trajectory amid the region's ongoing industrial recession. Demand was heavily impacted by subdued construction activity and fragile consumer sentiment, particularly in the cement manufacturing sector. Upstream costs remained stable, with Ethylene Oxide prices holding steady through mid-November, easing cost pressures on TEA producers. The overall market sentiment, however, remained bearish, reflecting weak economic recovery and reduced industrial output. 

The global TEA market continued to face supply chain challenges. Inventory drawdowns intensified as companies maintained leaner stock levels to preserve cash flow amid weak order volumes. Labor shortages also constrained production throughput, leading to rising backlogs. Despite these challenges, transportation costs remained aligned with historical averages, providing some stability in logistics. 

According to ChemAnalyst, TEA prices in the coming weeks are likely to be influenced by regional energy costs, procurement activity, and economic conditions. While Asia might see steady prices due to localized demand stability, Europe and the USA are expected to face continued downward pressure due to subdued demand and eased supply chain constraints.