Sodium Acid Pyrophosphate Prices Rise in Thailand Amid Strong Demand and Supply Constraints in August 2024

In August 2024, the Sodium Acid Pyrophosphate (SAPP) market in Thailand experienced significant growth trajectory, with prices increasing by 3.4% to USD 1,551 per MT on FOB - Laem Chabang basis. This incline in price was driven by various factors, including enhanced demand from food processing industries and water treatment companies, where Sodium Acid Pyrophosphate plays a vital role as a leavening agent and sequestrant. The rise in prices showed both domestic consumption and a raise in export orders, with Thai manufacturers adjusting to the changing market conditions.

One of the major reasons for the price increase in Sodium Acid Pyrophosphate is the seasonal increase in demand, especially from the food processing sector. This sector relies heavily on SAPP in various applications, including baked and processed foods. Additionally, the use of this commodity in water treatment and metal industries has further supported its demand. These industries have shown constant growth in August, adding to the steady increase in Sodium Acid Pyrophosphate prices as manufacturers capitalized on these growing needs.

Global supply chain constraints also played a vital role in keeping the prices of Sodium Acid Pyrophosphate higher. Export restrictions in major manufacturing countries, along with logistical delays, have affected the availability of SAPP in the international market, placing significant pressure on Thai suppliers. This situation has allowed Thai exporters to raise quotes, taking advantage of the imbalance between supply and demand across the globe.

Thailand’s broader industrial recovery, which can be seen in the steady growth of the manufacturing sector, also played a role in strengthening the market for Sodium Acid Pyrophosphate in the country.  According to the observations by ChemAnalyst, the country’s Manufacturing Purchasing Managers’ Index (PMI) has consistently stayed above 50, showing overall expansion. Although input prices for raw materials like sodium carbonate and phosphoric acid have generally been falling, the bulk purchasing of chemicals like Sodium Acid Pyrophosphate has allowed manufacturers to keep their production costs manageable while meeting the growing demand.

Looking ahead, the market for Sodium Acid Pyrophosphate in Thailand is expected to witness further price volatility till the end of this year. Although demand is likely to remain high, external factors such as shifts in global trade policies and production capacities in other regions will continue to influence pricing trends. For now, the forecast for September by ChemAnalyst indicates a further 3% rise in prices, indicating that the demand pressure will persist.

In summary, the price trends for Sodium Acid Pyrophosphate in Thailand during August 2024 were driven by strong demand from industries like food processing and water treatment, compounded by global supply constraints. These market forces hint that prices may continue to increase into the final quarter of this year, placing Thailand as a key regional supplier of SAPP.