US Sodium Tripolyphosphate Prices Decline Amid Tepid Consumer Demand, Seeks Recovery in Q2 2024

Texas, USA: The US Sodium Tripolyphosphate market demonstrated a bearish trend in March 2024 as the prices noted further decline due to the importation of low-priced goods. Due to ample availability and low consumption of Sodium Tripolyphosphate, sellers in exporting nations offered products at discounted prices. Additionally, on the cost side, support for Sodium Tripolyphosphate from upstream raw materials has remained stable as reported by the manufacturers.

On the demand side, due to the high availability of Sodium Tripolyphosphate, procurement decreased, accompanied by a slight downtick in domestic market consumption rates this month. Additionally, market participants have noted a delay in Sodium Tripolyphosphate payloads within the domestic market due to delays in container shipments that have eased slightly this month. Furthermore, government data indicates that U.S. economic growth in the fourth quarter of last year was slightly weaker than previously thought. This revision is mainly due to a downward adjustment in business investment. The GDP growth rate for the final quarter of 2023 was revised to an annual rate of 3.2%, slightly lower than the initial estimate of 3.3% released last month. Overall, businesses were operating at the usual pace; however, pressure regarding economic health continues to linger.

According to market participants, inventories of Sodium Tripolyphosphate were high in the domestic market, thereby the consumer market demonstrated a decrease in newer purchases of the product. The overall supply chain operated at a slower moderate pace, while vendor performance noted improvement due to limited trading activities. Additionally, freight rates have also remained at elevated levels, and supply chain constraints continued to impact trade. However, this month, freight rates have eased across major sea trade routes. Also, the drought in the Panama Canal has stabilized, although tensions in the Middle East such as attacks on container ships in the Red Sea continue to hinder business activities. For March 2024, the assessed prices of Sodium Tripolyphosphate CFR Los Angeles were USD 1085/MT.

Consumer demand for Sodium Tripolyphosphate from downstream water treatment, detergent, food, and beverages industries remained moderate due to ample material availability, and further inquiries from downstream industries were observed to be weak. In the fourth quarter of 2023, US gross domestic product expanded at a rate of 3.4% on an annualized basis, surpassing the previous estimate of 3.2%. The upward revision can be attributed to higher estimates of consumer spending, exports, and business investment, which provided support to the economy during the period under review. As a result, the business condition in the chemical sector, including Sodium Tripolyphosphate, improved, and an optimistic attitude is foreseen in the near future.

According to the ChemAnalyst database, the prices of Sodium Tripolyphosphate are anticipated to demonstrate a bullish trend in the upcoming weeks due to improved domestic consumption and increased consumer spending.