TEA Prices Rise in the US, but Decline in Asia, Amid Varied Supply and Demand Dynamics
TEA Prices Rise in the US, but Decline in Asia, Amid Varied Supply and Demand Dynamics

TEA Prices Rise in the US, but Decline in Asia, Amid Varied Supply and Demand Dynamics

  • 27-Dec-2024 5:45 PM
  • Journalist: Harold Finch

In mid-December, the Triethyl Amine (TEA) market showed contrasting trends across regions. In Asia, TEA prices declined as suppliers worked to manage high inventory levels amid falling feedstock costs, with both ammonia and ethanol prices showing a downward trend. Conversely, the US market experienced a price rise, supported by firm feedstock dynamics and increased ethanol costs. Positive demand from downstream sectors in the US further contributed to the upward TEA pricing momentum, highlighting regional differences driven by distinct supply, demand, and feedstock conditions.

In mid-December, TEA prices in the Chinese market experienced a significant decline. This downward movement was primarily driven by TEA supplier actions aimed at managing ample inventories amidst fluctuating feedstock conditions. Ammonia prices decreased due to rising supply pressures from increased production rates and restored maintenance equipment. Producers shifted focus to ammonia amid market sluggishness, intensifying surplus conditions, while ethanol prices observed a marginal decrease. TEA traders maintained high quotes but ultimately accepted lower prices, with ample bargaining space prevailing in the market. Downstream demand remained sluggish, limiting port transactions and restraining futures price growth. Despite modest positive signals from downstream sectors, they proved insufficient to counterbalance the prevailing supply pressures and cautious purchasing activity. In response, TEA market participants adopted competitive pricing strategies to accelerate inventory clearance, further reinforcing the declining trend in TEA prices across the region.

The price of TEA in the US market witnessed an increase in mid-December. This increase in the TEA price is primarily influenced by a rise in feedstock prices, particularly ethanol. U.S. ethanol prices grew due to higher production levels and a surge in export demand. Meanwhile, ammonia remained stable at upper levels, supported by prolonged buildup activities from market participants. Suppliers typically focus on managing stable inventories while adjusting pricing strategies to handle demand fluctuations. They are strategically withholding stock to support price levels, initiate selective sales to preferred customers, or implement gradual price increases. These actions aim to balance supply with future demand expectations, ensuring market stability while safeguarding profit margins.

As per ChemAnalyst's anticipation, the price of TEA is expected to show bullish trends in the US market, driven by prolonged buildup activities and positive movement in feedstock prices. In contrast, the Asian market is anticipated to maintain a stable to bearish momentum, with flat trends in feedstock prices exerting limited upward pressure. This divergence in market trends highlights the regional differences influenced by supply-demand dynamics and feedstock developments.

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