Texas (USA): The prices of Sodium tripolyphosphate (STPP) in the US have shown a downturn in recent weeks, mainly due to the import of cheaper goods. With ample availability and low consumption of STPP, sellers in exporting countries offered STPP at discounted prices. However, domestic prices were slightly supported by increased household activities and rising demand in the water treatment sector for the upcoming summer season.

Demand from the downstream textile and paper industries was underwhelming. On the cost side, support for STPP from upstream raw materials remained stable, as reported by manufacturers. Additionally, the Federal Reserve's recent signals have sparked concerns among investors that anticipated rate cuts may not materialize as quickly as expected. The Federal Reserve did not specify when rate cuts might occur, indicating that the high-interest rate environment in the United States could continue for an extended period.

According to market participants, the availability of STPP was moderate in the domestic market, leading to an increase in new purchases. However, the downstream paper and textile industries witnessed moderate demand for STPP as business confidence remained weak, resulting in a decrease in inquiries from the packaging industry. According to the US Department of Commerce's Office of Textiles and Apparel, apparel exports to the US market experienced a significant decline from January to March of this year, dropping by 17.68% to USD 1.75 billion. Similarly, combined shipments of textiles and apparel fell by 17.37% to USD 1.81 billion during the same period. Despite a decrease in inflationary pressures in the US, apparel exports have been steadily declining in recent months as retailers and brands in the country reduce their imports of clothing. As a result, the consumption of STPP in this segment has further declined.

On the other hand, demand for STPP from the water treatment sector has  remained robust. Xylem, a global water technology provider, raised its annual profit forecast due to strong demand for its water and wastewater treatment products and services. In the first quarter of 2024, the company's total revenue surged by 40.4% to USD 2.03 billion, surpassing expectations of USD 2 billion. Sales from its water infrastructure division, responsible for producing water and wastewater pumps, increased by 40%.

The ChemAnalyst database anticipates that STPP prices will likely improve in the coming weeks due to increased consumer demand. The increased offtakes from the downstream industries is expected to catapult the prices of STPP in the US market.