Category

Countries

European Triethanolamine Prices sees a Surge Amidst Extended Supply Disruptions
European Triethanolamine Prices sees a Surge Amidst Extended Supply Disruptions

European Triethanolamine Prices sees a Surge Amidst Extended Supply Disruptions

  • 14-May-2024 3:07 PM
  • Journalist: Peter Schmidt

The European Triethanolamine market experienced a rise in the early May 2024, driven by producers' efforts to boost profit margins amidst reduced downstream consumption. Additionally, upstream Ethylene Oxide suppliers encountered a price increase early in May 2024, attributed to a plant shutdown in Germany. The upward trajectory of crude oil prices in April potentially prolonged the closures of Triethanolamine plants in Europe, leading to continued price hikes in the regional market.

In Europe, BASF SE at Ludwigshafen facility in Germany underwent maintenance turnaround throughout March and April 2024  with a total production capacity of 4333 TPM reduced to the active capacity of 0 TPM for the time being, along with other producers, who are considering the closure of their upstream units due to low profitability and intense competition. They plan to stop feedstock production in Europe and opt to import them from Asia instead. The closure of upstream plants in the European region has notably decreased Triethanolamine production rates and limited supplies during this period. In May 2024, the upstream Ethylene Oxide production facility, Ineos Oxide at Cologne also scheduled maintenance shutdown in the first half of the month.

From the demand perspective, the Triethanolamine new orders in the construction sector were influenced by the current real estate markets, with residential sectors experiencing a gradual cooldown while commercial counterparts grapple with mounting obstacles. Challenges such as increased financing expenses, the shift toward hybrid work setups, e-commerce, and demands for environmental and social governance are expected to notably strain office and retail segments going forward. Furthermore, there has been a notable shift in the purchasing behavior of European Triethanolamine buyers, who have increased their procurement from the import market in recent years. European customers previously exhibited a more conservative approach to their procurement strategies, showing a preference for contractual agreements.

Moreover, due to the ongoing complexity of the situation in the Red Sea, we will persist in diverting our vessels around the Cape of Good Hope in the foreseeable future to ensure the safety of our crew, vessels, and our customers' cargo. Recent attacks extending farther offshore have compelled our vessels to extend their voyages, resulting in escalated costs and sailing durations. Consequently, this situation has led to bottlenecks, clustering of vessels, delays, and shortages in both equipment and capacity in the Triethanolamine market.

In conclusion, Triethanolamine industry players expressed concern about a tighter supply outlook due to constrained production rates in the Eurozone. Several participants mentioned receiving a cargo of Triethanolamine from the United States. As per the ChemAnalyst, projections for May indicate that Triethanolamine prices are expected to stabilize after a consistent upward trend, with forecasts suggesting that feedstock Ethylene Oxide prices will remain stable to slightly resilient. Demand is expected to continue focusing on essential needs with the upcoming downstream construction industry consumption, while the Triethanolamine supply outlook remains unchanged.

Related News

Asian Triethanolamine Market Ends May on a Positive Note Amid Upbeat Freight Cost
  • 03-Jun-2024 4:28 PM
  • Journalist: Gabreilla Figueroa
The US Triethanolamine Prices Continuous following Uptrend in March 2024
  • 19-Mar-2024 3:51 PM
  • Journalist: Gabreilla Figueroa
Dow Chemicals Puts Force Majeure on Triethanolamine Plant as Winter Snap Hits Production
  • 24-Jan-2024 2:47 PM
  • Journalist: Harold Finch
Force Majeure at BASF Sends Shockwaves to Belgian Triethanolamine Market
  • 27-Dec-2023 5:24 PM
  • Journalist: Gabreilla Figueroa