THPS Prices Improve Amid Rising Demand

Shanghai (China): In recent weeks, THPS (Tetrakis Hydroxymethyl Phosphonium Sulfate) prices surged globally, driven by consistent demand across key sectors such as water treatment, paints, coatings, and the oil and gas industries. This price hike was fueled by increased household activities and seasonal demand from downstream paint and coating sectors, as well as the water treatment industry. International demand for THPS also rose, influenced by similar seasonal trends. China, a major producer and exporter of THPS, reported a 7.6% year-on-year growth in exports in May 2024, exceeding the forecasted 6% growth rate. This robust export performance indicates improved demand from international markets for THPS, fostering optimism among industry stakeholders.

China's manufacturing sector experienced significant growth, driven by accelerated production rates and an increase in new orders, including those for THPS. This led to quicker accumulation of backlogged work and heightened purchasing activities to secure inputs for ongoing and future production. Strong domestic and international demand, particularly in the consumer goods segment, fuelled robust output growth for THPS. However, the sector faced challenges such as a slight decrease in cost support from tetrahydrofuran feedstock due to sluggish trading activities and disruptions caused by severe flooding and power outages in southern Chinese provinces. Despite these issues, high coal prices driven by rising temperatures and peak sales season maintained elevated production costs. Additionally, increasing port congestion in key Asian hubs exacerbated supply chain challenges, contributing to the overall rise in prices across various sectors, including THPS.

In the domestic USA market, THPS demand improved due to sustained strength in the downstream oil and gas sector as U.S. crude oil production continues to rise. THPS plays a crucial role in facilitating the recovery and treatment processes essential for maximizing oil and gas extraction efficiency, supporting its heightened demand. Additionally, the paint and coating sector in the USA witnessed significant growth fueled by a robust rebound in the automobile market. May's remarkable 7.6% month-on-month increase in U.S. vehicle sales, with 15.9 million units sold, drove heightened procurement activities across multiple downstream industries, including those requiring THPS. Positive market sentiment, coupled with incentives linked to the Memorial Day holiday, further bolstered demand in these sectors.

According to ChemAnalyst, THPS prices are expected to continue rising as global manufacturing activity improves and active procurement queries are anticipated in the water treatment industries for the summer season. This trend underscores the critical role of THPS in maintaining industrial efficiency and meeting escalating global demand for this versatile chemical.