Triethanolamine Market Turns Bearish In Asia And Europe at Early October 2024 Amidst Feeble Demand

Triethanolamine prices in Asia and Europe declined in early October 2024, influenced by increased production levels and fluctuating downstream demand. Demand from the downstream cement sector remained stable but lackluster, driven mostly by basic purchasing requirements. Despite these dynamics, shipments did not see any notable improvement, and inventories at certain companies grew, though overall production and sales among most Triethanolamine producers remained relatively stable. The OPEC basket crude oil prices declined during September 2024 and were assessed at USD 73.59 per barrel further affecting the Triethanolamine upstream costs in October 2024.

The Triethanolamine price trend in the Asian market remained on a decline, with demand from the downstream construction sector continuing to show no signs of recovery. Despite earlier hopes for a recovery during the traditionally strong "Golden September" period, the market continues to face weak terminal demand and slowed trading activity. The Triethanolamine industry's operating rate has increased following the completion of scheduled maintenance, leading to stable supply levels, with overall availability outpacing demand. The National Bureau of Statistics of China reported that the Manufacturing Purchasing Managers' Index (PMI) stood at 49.8% in September 2024. Thus, the Triethanolamine market across Asia remains cautious, with shipments declining and sentiment softening as the week advanced.

In Europe, the Triethanolamine prices declined in the first half of October 2024 as the downstream demand from the construction sector remained dull and eased import costs. The Eurozone construction PMI reflected a significant downturn in overall construction activity across the euro area, with new orders continuing to decline sharply. This led to the largest reduction in construction jobs. Household consumption declined, business investment was reduced, and housing investment saw a sharp drop, reflecting weakening regional demand.

From the supply perspective, Freight rates on several key routes experienced declines in early October. Rates from Shanghai to Rotterdam fell by 6%. The ILA port strike, which started on October 1, 2024, concluded after three days, ending on October 4, 2024. With the tentative agreement reached, Drewry anticipates that rates from China will continue to decrease slightly in the coming weeks. As a result, the upcoming imports from China to Europe will remain at lower costs, further impacting the Triethanolamine price trend in Europe during October 2024.

As per ChemAnalyst, the Triethanolamine prices are expected to stabilize in the upcoming weeks followed by a balanced demand-supply in the European and Asian markets. The downstream demand for Triethanolamine in the construction sector is expected to show a slow increase in the line of ample supplies, balancing the market situation in both regions.