Qingdao (China): In March 2024, Trisodium Phosphate prices are expected to increase towards the end of the month due to rising costs of its feedstock, Sodium Carbonate, amidst growing demand from downstream industries like food additives and emulsifiers, spurred by improved economic conditions. This follows a notable surge in Trisodium Phosphate prices in February, primarily attributed to higher Sodium Carbonate costs, Trisodium Phosphate's primary raw material. Strong demand persisted from sectors such as food additives, water softeners, and laundry, creating a favourable overall demand environment. Forecasts indicate further price hikes influenced by escalating Sodium Carbonate costs.

Looking forward, expected increases in energy prices may lead to higher production expenses. However, continued strong demand from detergent and bleaching industries is anticipated, driving ongoing inquiries from downstream sectors. Market expectations include the possibility of a Trisodium Phosphate price surge due to restocking activities, potentially exacerbating supply gaps and raising price hike expectations.

Moreover, increased economic activity driven by restocking efforts is poised to further support Trisodium Phosphate prices. Domestically, production plants maintained steady operations to meet downstream industry demand, ensuring ample availability of Trisodium Phosphate in the local market. Supply chain disruptions were minimal, with little port congestion observed in the region. In the Chinese domestic market, resilience was evident in the Trisodium Phosphate downstream food additives, water softener, and laundry industries. However, the rise in crucial Sodium Carbonate feedstock prices this month has resulted in increased production costs.

Nonetheless, despite these challenges, there has been a significant increase in the Purchasing Managers' Index (PMI), signalling manufacturing sector expansion alongside heightened demand from downstream industries.

In February, Trisodium Phosphate prices surged in India notably, primarily driven by elevated import prices from the Chinese market. However, demand from sectors like food additives, water softeners, and laundry remained robust, creating a positive overall demand landscape. Forecasts suggest prices will continue to rise due to increasing costs of the raw material, Sodium Carbonate, though steady demand from the Trisodium Phosphate downstream detergent industry is expected. Looking ahead, rising energy prices are expected to lead to higher production expenses.

Moreover, there were no significant disruptions in the supply chain, and port congestion in the region remained minimal. In the Indian domestic market, industries such as food additives, water softeners, and laundry products showed resilience. However, prices of essential Trisodium Phosphate feedstock Sodium Carbonate increased this month, resulting in higher production expenses.

Nonetheless, the Trisodium Phosphate downstream detergent and bleaching industries are anticipated to maintain their strong demand, keeping downstream sectors interested. Market expectations hint at a potential price surge due to restocking activities, with a possible supply gap further heightening expectations of price hikes. Additionally, increased economic activity driven by restocking efforts is expected to contribute to an upward trend in prices. Domestically, production plants maintained consistent operations to meet downstream demand, despite escalating import prices from the Chinese market leading to increased inventory costs. Despite robust demand from these sectors, Trisodium Phosphate remained readily available in the local market.