Triethanolamine prices in both the US and Asian markets witnessed a noticeable decline during the last week of December 2024, primarily driven by ample inventories and sluggish downstream demand for the cement segment. Despite stable feedstock Ethylene Oxide prices, subdued buying activity across key sectors such as personal care, textiles, and cement additives exerted downward pressure on Triethanolamine values during this timeframe.

In the US, the ongoing economic challenges, coupled with rising shipping and transportation costs, have prompted buyers to adopt a cautious approach to procurement. The US Triethanolamine market also weakened due to the end of the holiday season and Christmas-related procurements, particularly in the cosmetics sector. As seasonal demand tapered off, Triethanolamine producers lowered both local and export prices to manage inventories and remain competitive in the global market. The reduction in buying activity from cosmetic manufacturers further contributed to the bearish pricing trend.

Additionally, the anticipated port strike on the US Gulf and East Coast ports by the International Longshoremen’s Association (ILA) in mid-January 2025 is raising concerns about potential supply chain disruptions. Meanwhile, major shipping companies, including Maersk and Hapag-Lloyd, have advised customers to prepare for potential delays and cost surcharges.

Meanwhile, in Asia, Triethanolamine prices have also softened due to sufficient stock levels and a dip in demand from key downstream industries. The easing of freight rates within the region, as reflected by Drewry’s Intra-Asia Container Index (IACI), which fell 6% in the second half of December to USD 879 per 40ft container, has provided some relief to the market. However, intra-Asia freight rates remain significantly higher than a year ago, indicating the ongoing strength of regional trade.

The construction sector, a major end-user of Triethanolamine in concrete and cement additives, has shown mixed performance. While cement and concrete prices remain elevated due to rising project demand and higher costs for labor, energy, and transportation, demand growth has been steady. However, forecasts predict a slight easing of prices between the first two quarters of 2025, which may provide some stability to the market.

Looking ahead, Triethanolamine market participants remain cautious amid global economic uncertainties and the potential impact of increased tariffs under the incoming Trump administration. Tariff hikes on imports from key trading partners such as South Korea could disrupt trade flows and impact Triethanolamine exports. The anticipated tariffs have prompted many US importers to front-load shipments, resulting in short-term fluctuations in container freight rates in the Triethanolamine market.

As per ChemAnalyst, the Triethanolamine market is expected to remain under pressure in the near term due to ample supply, stable feedstock costs, and subdued demand.