Since the beginning of April 2023, the prices of Trisodium Phosphate have been observed to be on upper levels. The downstream industry, including food additive and metal treatment, has faced several headwinds, such as volatile energy prices, spiraling inflation, and supply-chain disruptions due to COVID-19 restrictions in the extant few quarters. However, China's post-COVID economic recovery and gradual strengthening of the key industry amidst a steady decline in inflationary pressures has been responsible for the upshift observed in the price realizations of Trisodium Phosphate.

Trisodium Phosphate prices have increased by USD 20/MT monthly in the Chinese market because of improved buying sentiments among the end-user industry. The rise in downstream procurement reported has influenced the pricing value chain of Trisodium Phosphate in the local market. As a result of increased demand from the downstream food additive, water softener, producers were forced to adjust their offers in order to increase profit margins. However, feedstock Phosphoric acid prices have fallen,but it had limited beraing over the prices of Trisodium phosphate in the domestic market. As per the sources, in April, China's export rate increased by 8.5% in the US dollar term, signifying an increase in new orders from the international market, thus boosting the market sentiments of Trisodium Phosphate in the domestic market. Thus, as of result, prices of Trisodium Phosphate were settled at USD 505/MT during April 2023.

Similarly, in the Indian market, Trisodium Phosphate prices have risen substantially, backed by increased consumption from the downstream food additives and detergent industry coupled with inadequate supply in the domestic market. In addition, operating rates have been firm in the domestic market, although imports from neighboring China have remained average. Market players reported that the supply chain was interrupted amid logistic issues, leading to constrained inventories on the Indian ports or shores, which forced the traders to revise their positive price quotation. At the same time, congestion on major ports such as JNPT owing to a significant capacity reduction, which has been driven by the closure of a berth operated by APM Terminals (APMT) Mumbai, to upgrade and replace gantry cranes, which further waned the supply chain fundamentals. However, market participants reported that port congestion might last till November, which will further worsen the supply dynamics in the coming quarters. The PMI of the country reached a four-month high value and was assessed at 57.2 in April. Industrial activities, along with a better purchasing index, remained on a higher edge in the domestic market. Hence, as a result, prices of Trisodium Phosphate were assessed at around USD 538/MT with a month-on-month increment of 7.8% during the same time frame.

As per the ChemAnalyst anticipation, prices of Trisodium Phosphate are likely to increase in the Asian market due to further projection of growing demand for Trisodium phosphate from the downstream food additives, water softener, and other value chain industries. Further, feedstock Phosphoric Acid will also gain an uptrend which may positively impact the production cost of Trisodium Phosphate.