US Triethylamine Prices Spike in Mid-August Fuelled by Costly Feedstocks and Robust Market Demand

In mid-August, the price of Triethylamine (TEA) in the US market experienced a significant increase. This rise in the TEA price is primarily linked to the higher cost of Ammonia, a key feedstock for TEA production, while Ethanol prices remained stable, contributing to the overall cost dynamics. The surge in TEA prices is further supported by improved performance in the downstream Agrochemical and Pharmaceutical sectors. Enhanced activity and growth in these sectors have led to increased demand for TEA, as it is a crucial component in various formulations and processes. As a result, these combined factors have driven up TEA prices in the US market, reflecting the interplay between feedstock costs and robust end-user demand.

This week, the price of TEA in the US market experienced an increase at 2650 USD/MT FOB-Texas. In the feedstock market, Ammonia prices saw a notable rise, while Ethanol prices remained stable. Major manufacturers reported mixed results, Eastman Chemicals recorded strong year-over-year sales growth driven by Advanced Materials, achieving a 300-basis-point sequential margin improvement despite flat sales revenue. In the aliphatic amines market, Albemarle posted net sales of $1.4 billion, reflecting a 40% year-over-year decline, partially offset by a 37% increase in Energy Storage volume. The Dow Jones Pharmaceuticals (DJUSPR) index showed robust growth, indicating strong TEA consumption in the pharmaceutical sector. Meanwhile, the ISM Manufacturing PMI dropped sharply to 46.6 in July from 48.5, indicating a significant contraction in US factory activity. The surge in TEA prices this week is largely attributed to positive market reactions to the imbalance between supply and demand.

In the US market, the demand for TEA has increased, largely due to heightened activity in the Agrochemical sector. From the Agrochemical sector, FMC Corporation reported a 24% rise in North American sales, driven primarily by higher herbicide volumes, while Latin American sales grew by 14%, with strong performance in Brazil. In the Pharmaceutical sector, Pfizer saw a 3% year-over-year revenue increase, and Johnson & Johnson recorded a 4.3% growth in second-quarter sales. Additionally, the US Bureau of Labor Statistics reported a 3% rise in the consumer price index, indicating ongoing inflationary pressures.

According to ChemAnalyst's forecast, the price of TEA is expected to trend bullish in the upcoming sessions. This anticipated increase in the TEA price is mainly driven by the expected rise in feedstock prices, particularly Ammonia and Ethanol. Additionally, positive demand from the downstream Agrochemical and Pharmaceutical markets is likely to further boost TEA demand. These factors are projected to influence the pricing dynamics of TEA in the US market.