As of last week of Oct the price of the Triethylamine (TEA) in the global market witnessed a notable rise. This surge in the TEA price is majorly attributes to the rise in the demand from the downstream market despite underperformance in the feedstock price majorly Ammonia and Ethanol. However the suppliers are witnessing deficit in the supply and the demand ratio due to which the price is influencing marginal upturn in the TEA price.

In China, TEA prices showed a marginal rise, now positioned at 1760 USD/MT FOB-Qingdao, following a period of consecutive price reductions. This slight uptrend in the TEA price aligns with suppliers gradually increasing inventory levels, reflecting a sense of price correction after ongoing declines. The supply chain saw notable shifts, as increased urea-to-ammonia conversion ramped up ammonia availability, contributing to a downward pull-on ammonia prices. Concurrently, raw corn prices continued their decline, loosening cost support for fermented corn ethanol, which saw softer quotes in the ethyl alcohol market. Although company shipments experienced slower movement, suppliers aimed to mitigate the impact of recent price drops through strategic inventory accumulation. With these adjustments in raw material costs and a cautious buildup in TEA stocks, market actions suggest a conservative approach by suppliers to stabilize prices, preventing further volatility. This combination of supply and feedstock dynamics provides a basis for the marginal rise in TEA pricing.

In the U.S. market, the price of TEA rose to 2700 USD/MT FOB-Texas amid a strengthening recovery across key sectors, particularly agriculture and pharmaceuticals. This uptrend in the TEA price was influenced by an increase in ammonia prices, a critical feedstock for TEA, which elevated production costs. In mid-October 2024, North American Ammonia prices rose due to high natural gas costs and supply shortages from weather-induced shutdowns. Key facilities, including LSB Industries and Nutrien, halted production, tightening supply. Meanwhile, domestic demand remains modest as heavy rainfall and hurricanes raise concerns over potential crop damage, adding complexity to the Ammonia market’s upward price trend. Meanwhile, ethanol supply remained adequate, ensuring stability in secondary input availability. Market participants maintained an upward price adjustment, reflecting the demand recovery in downstream sectors and the pressures from rising ammonia costs. Additionally, as the economic backdrop stabilized, TEA producers adjusted their pricing to balance cost pressures and meet the heightened sector demands, sustaining the current pricing trend.

ChemAnalyst anticipates a bullish trend in TEA prices in upcoming sessions, primarily due to expected inventory buildup by suppliers. This strategy addresses a projected deficit in the demand-supply balance, which is likely to persist in the near term. Supplier actions in inventory management aim to stabilize availability, potentially driving prices upward amidst this anticipated imbalance.