Global Triethylamine Price Witnessed a downturn in Jan 2024 Amid Weak Feedstock Prices

The price of Triethylamine in the in the global market witnessed a declining trend in January 2024. This decline is majorly attributed to the decrease in price witnessed from the feedstock Ammonia and Ethanol price. The mixed demand from the downstream Pharma, Agrochemical, Dyes and Pigments sectors has resulted into lowering the demand for the Triethylamine thereby influencing the price of Triethylamine this month.

In the US market, the price of Triethylamine experienced a decline in January, reaching 2700 USD/MT FOB-Texas, marking a decrease of 2.17%. This decline is primarily attributed to the reduction in prices observed in the feedstock markets of Ammonia and Ethanol. The downward trend in pricing aligns with challenging economic indicators in Texas, USA, as reported by the Federal Reserve Bank of Dallas. The general business activity index for manufacturing in Texas dropped 17 points to 27.4 in January 2024, representing its lowest level in eight months and indicating a deeper contraction in manufacturing activities. Despite the challenging economic conditions, the demand for Triethylamine from downstream markets, particularly in the pharmaceutical and personal care sectors, has shown significant growth. However, the Dyes and Pigments and Agrochemical markets witnessed subdued demand. The mixed demand in the downstream market, combined with lower raw material prices and sufficient inventory availability, has led to a decline in Triethylamine prices this month.

In the European market, Triethylamine faced a challenging price trend in January 2024. According to the Hamburg Commercial Bank, the chemicals sector in Germany showed promising signs of resurgence, with a notable slowdown in the decline of orders received. Despite lingering at a dismal level in December, there has been a significant leap toward the expansion mark of 50 in the Purchasing Managers' Index (PMI), signaling a slight downturn in order intakes. This progress in the cyclical chemicals sector is considered heartening and is seen as positive for the export sector, especially amid geopolitical challenges. The challenges include issues such as attacks by Houthi rebels on commercial vessels in the Red Sea, necessitating longer routes around South Africa and leading to significant delivery delays, notably impacting voyages to Europe. The demand for Triethylamine from downstream markets, especially in the pharmaceutical, personal care sectors, dyes and pigments, and the agrochemical market, witnessed subdued demand in the European market. In the overseas market, the chemicals segment remained the best-performing area of the German manufacturing sector in terms of the trend in export sales. The latest survey indicated that new orders from abroad fell at the weakest pace since May 2022. Exporters in the chemicals segment commented on signs of a turnaround in demand for raw materials across the global manufacturing sector, partly helped by customer restocking.

According to ChemAnalyst's anticipation, the price of Triethylamine is expected to witness bearish momentum in the upcoming sessions. This expectation is based on favorable feedstock prices, which will affect the production of Triethylamine in a cost-effective manner. While the Asian market is anticipated to experience a surge in the price of Triethyl Amine, major industries remain optimistic about the demand witnessing positive momentum. With an increase in production and orders, marked by the improvement in the economy, there is an expectation of positive outperformance in various downstream sectors. This positive trend is anticipated to influence the demand for Triethylamine in the market. The intersection of favorable feedstock prices, economic improvement, and increased production is expected to contribute to the bearish momentum in the Triethylamine market.