Asian Triethanolamine Market Ends May on a Positive Note Amid Upbeat Freight Cost

At the beginning of June 2024, the Triethanolamine market witnessed a rise in prices in the Asian region. Early in May 2024, there was a modest increase, spurred by growing interest in inquiries and procurement in the downstream sector. This momentum carried into June, with production costs continuing their upward trajectory. Moreover, a sharp reduction in available container space caused a spike in container freight rates.

In China, a significant boost came with a reduction in the interest rate for personal housing provident fund loans, injecting positive sentiment into the Triethanolamine market. This macroeconomic development led to a strong performance in the Triethanolamine market, which in turn lifted the local market prices. Overall, the market showed an improvement during May 2024.

In Southeast Asia, market participants have been acutely aware of the swift increase in freight rates. Although caution prevails, the climbing rates have prompted producers to raise prices in the Triethanolamine market. The players are beginning to restock to protect themselves against the rising freight costs. Meanwhile, some Asian sellers observed that despite weak end-product demand, local supply tightness and the freight rate hikes have driven up Triethanolamine prices.

A severe container and vessel space shortage, caused by commercial ships taking longer routes to avoid the Red Sea, has caused freight rates to skyrocket in recent weeks. This surge has artificially inflated Triethanolamine prices, despite generally weak demand. The competitive advantage Asia gained from weaker currencies against the US dollar is being eroded by the high cost of shipping from the region. The Chinese yuan recently hit a six-month low, while the Japanese yen remains at multi-year lows against the US dollar, which is bolstered by persistently high interest rates.  While overseas demand for the products, including Triethanolamine, appears to be improving, the actual trades are being disrupted by logistical issues stemming from the Red Sea crisis in the Middle East. Thus, the Triethanolamine prices have been elevated by the supply shortage and rising freight costs during this timeframe.

As per ChemAnalyst, the Triethanolamine prices are expected to increase due to low stock availability and a rise in freight costs. The producers in Saudi Arabia are expected to reduce production rates in the face of geopolitical tensions, further affecting the inflow of Triethanolamine imports in the Asia Pacific region. Freight rates for chemical tankers are increasing due to the Red Sea crisis, leading some producers to delay cargo loading.