Triethylamine Market Experiences Downtrends in the USA Amidst Supply Glut

The Prices of Crude Oil and Natural Gas have declined in the USA, impacting the downstream Ammonia and Urea prices in the regional market. However, this has lowered the Triethylamine market prices due to the lowering of the consumption rate. Meanwhile, today marks the start of the initial stage of an increase in the transportation of Triethylamine, wherein the equilibrium between supply and demand exists between the United States and its export destinations to European countries, according to recent market reports.

Urea futures shrunk to USD 300/ton as feedstock prices declined in the local market. Similarly, the price of Triethylamine tumbled in the US market, settling at USD 2276/ton FOB Texas, influenced by declining feedstock costs for Ammonia. A surplus of LNG imports and restructured supply chains boosted Triethylamine availability, exacerbated by accumulated inventories caused by sluggish consumer spending in certain application sectors such as catalyst production, herbicide formulations, and corrosion protection services.

Unit labor costs in the US non-farm business industries increase annually by 4.2% in Q1 2023 compared with 2022, less than earlier anticipates of 6.3% but remains lower than expected. The production costs of Triethylamine plunged, with PMI in the region also depleted by 46.3, pointing to the biggest contraction in the manufacturing sector since December. New orders depleted with plunging demand linked to muted customer confidence, while international downstream demand was also subdued, and input buying from the downstream market fell to its steepest rates. The US CPI also plunged to 4% in the region, relieving the pressure and impact of high prices on Triethylamine.

Freight charges from the US West Coast to Asian markets underwent a moderate correction of 8%, providing partial respite from escalating expenditures associated with Triethylamine shipping. Despite fluctuations in the domestic market, supply adequately met the demands of the downstream sector domestically.

In addition, the global oversupply of Triethylamine is compounded by insufficient patronage from the downstream catalyst, herbicide, and corrosion protector sectors. The market participants witnessed swollen stock levels with traders and dealers owing to prolonged dormancy in end-user demand, based on current transaction statistics of Triethylamine.

Recently, the Logistics Industry experienced a marginal decrease of 1.1%, attributable to a diminished 2.5% performance by United Parcel Service impacting the Triethylamine prices. Going forward, experts predict growth prospects, prompting worried capital allocators to project slower long-term expansion compared to historical averages, resulting in a  reduced price to Earnings ratio of 14.4 times versus the conventional 3-year mean multiple of 21.1 times. As per market trade data, all these factors helped reduce the Triethylamine pressure in the regional market.