In November 2023, prices of TetraKis (Hydroxymethyl) Phosphonium Sulfate (THPS) experienced a notable upswing in the US market, propelled by robust demand from the downstream oil and gas sector and escalating requirements in wastewater treatment. The surge in USA petroleum production, particularly after April 2023, played a pivotal role in bolstering the demand for THPS. Simultaneously, concerns about microbial contamination in drinking water further fueled the need for THPS in effective water treatment solutions. THPS is predominantly used as a biocide in various applications, including water treatment in industries, oil and gas production, paper manufacturing, and wood preservation.

Throughout November, TetraKis (Hydroxymethyl) Phosphonium Sulfate prices maintained an upward momentum, influenced by a positive trend observed in the Asian market. Buoyant demand for THPS in water treatment downstream sectors, coupled with increased costs in feedstock Phosphine and Formaldehyde, contributed to the steady ascent in prices. Natural gas prices, a crucial input energy source, also exhibited a positive trend, further supporting the overall pricing dynamics.

The unexpected increase in U.S. crude oil output, exceeding analysts' expectations with a 9% year-on-year increase through April, defied earlier projections of a decline. This boom in oil production not only surpassed expectations but also hinted at the diminishing influence of the Organization of the Petroleum Exporting Countries (OPEC) in controlling global oil prices, significantly boosting THPS demand within the oil and gas industries.

In parallel, researchers from Loma Linda University (LLU) identified microbial contamination in drinking water sources, including soda fountains at fast-food establishments in the Eastern Coachella Valley. The discovery that 41% of water samples contained total coliforms underscored the urgent need for effective water treatment solutions.

The price of THPS began rising in April 2023 at USD 927 per metric ton, increasing to USD 1036 per metric ton in the following month, representing an 11.7% surge. Subsequently, the price continued to climb each month, reaching USD 1430 per metric ton in September. Following this upward trend, it reached USD 1450 per metric ton in October, and by November, THPS prices in the US peaked at USD 1470 per metric ton.

Looking ahead, the ChemAnalyst Database projects sustained growth in THPS demand in the coming months, aligning with the anticipated continuous boom in U.S. oil production throughout 2024. This optimistic outlook is expected to drive further developments in the water treatment and oil and gas industries, solidifying THPS's position as a key player in addressing emerging challenges and ensuring the integrity of critical systems.