For the Quarter Ending September 2024
North America
In Q3 2024, the North American phosphonate market experienced a consistent decline in prices, driven by several key factors. Reduced demand from downstream sectors such as textiles and paper, coupled with ample material availability and weak consumption, contributed significantly to the downward pressure on prices. Additionally, the market faced challenges due to ongoing disruptions and periodic plant shutdowns, including issues at major facilities.
In the U.S., where the most significant price fluctuations occurred, additional factors further exacerbated the market challenges. Consumer spending and industrial activities in the country saw a notable decline, which directly impacted the consumption of phosphonates, particularly in sectors like water treatment, detergents, and industrial cleaning. This reduction in demand was compounded by global disruptions, as the ongoing conflict in Middle Eastern regions led to interruptions in trade routes and supply chains, further influencing the availability and cost of key raw materials.
The price drop became more pronounced in the latter half of the quarter, signaling a strong downward trend. By the end of Q3 2024, phosphonate prices had settled at lower lavels, highlighting the negative market sentiment shaped by persistent price declines and challenging market dynamics throughout the period.
APAC
In Q3 2024, the Phosphonate market in the APAC region has experienced stable pricing dynamics. The overall stability can be attributed to various factors influencing market prices. Demand from downstream industries like water treatment, paper, and pulp has played a significant role in maintaining price consistency. However, challenges in the upstream markets, such as yellow phosphorus and phosphorus trichloride, have added pressure on prices. Despite steady consumption patterns and production levels, the market has struggled with weak consumer inquiries and subdued demand in certain sectors. Specifically focusing on China, the market has witnessed the most significant price changes within the region. The quarter recorded a -6.1% decrease compared to the same period last year, reflecting ongoing market challenges. Moreover, the quarter-on-quarter change of -7.4% highlights the continuous downward trend in pricing. Notably, the comparison between the first and second half of the quarter showed no significant fluctuations, indicating a stable pricing environment. The quarter-ending price of USD 890/MT for Phosphonate ATMP 50%-FOB Shanghai in China underscores the prevailing stability in prices despite internal and external market influences.
Europe
Throughout Q3 2024, the Phosphonate market in Europe experienced a downturn in prices, with Germany notably affected by significant fluctuations. The decrease in prices can be attributed to various factors, including weakening demand from downstream sectors such as textiles, water treatment, and paper industries, coupled with reduced consumer spending and sluggish economic growth. Moreover, high material availability in the region further contributed to the downward pressure on prices. The overall trend in the market indicated a negative sentiment, with a notable -6% price difference between the first and second half of the quarter. Compared to the same quarter last year, prices saw a decline of -1%, reflecting the challenging market conditions faced by Phosphonate producers and distributors. However, there was a slight 1% increase from the previous quarter in 2024. The quarter-ending price of USD 1050/MT of Phosphonate ATMP-CFR Hamburg in Germany underscored the stable yet downward pricing environment prevalent throughout Q3. The consistent decrease in prices underscores the overall challenging market dynamics and subdued demand in the region.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Phosphonate market in North America experienced an upward trend. Prices increased in the initial weeks due to heightened consumer demand, particularly in the industrial, household, and water treatment sectors, as summer approached. The quarter was marked by heightened manufacturing costs, propelled by increased prices of upstream Yellow Phosphorus and sustained demand from downstream industries.
By mid-Q2 2024, Phosphonate prices continued to rise because of increased demand and supply constraints. Although the textile and paper industries showed limited demand, the influence of upstream raw materials was significant. While business confidence improved slightly during the quarter, consumer demand in sectors other than the water treatment industry remained lackluster. Although Q1 GDP was weaker than expected, this was primarily due to softer net exports and inventory investment, which offset stronger domestic economic activity.
In the final month of the quarter, Phosphonate prices increased further due to persistent supply stress and strong domestic demand. Upstream prices continued to have an impact, while higher freight charges due to geopolitical tensions and supply concerns also exerted pressure on the Phosphonate market. The U.S. economy showed positive signs, with projections of high inbound cargo volumes despite ongoing supply chain challenges, leading to optimism among industry participants about the future.
APAC
In the second quarter of 2024, the Phosphonate market in the APAC region experienced a marked downturn, driven by several pivotal factors. Firstly, increased inventories due to expanded manufacturing activities led to an oversupply situation, exerting downward pressure on prices. Additionally, the cost support from upstream phosphorus trichloride was stable, but not strong enough to counterbalance the weak demand from downstream sectors, particularly fertilizers, which saw sluggish procurement. Focusing on China, the region with the most significant price fluctuation, the decreasing trend in Phosphonate prices was even more pronounced. Seasonality played a crucial role, with lower consumption rates during the off-peak season contributing to the price decline. Correlation with upstream markets showed that steady prices in raw materials like phosphorus trichloride could not mitigate the overall weakening demand. The prices of Phosphonate ATMP 50% FOB Shanghai dropped by 18% compared to the same quarter last year and saw a 5% decrease from the previous quarter in 2024. Additionally, a comparison between the first and second half of the quarter revealed a 6% decline, underscoring a progressively negative trend. The quarter concluded with the price settling at USD 895/MT, reflecting a negative pricing environment throughout the period. Overall, the pricing dynamics in this quarter have been negative, driven by a confluence of high inventories, weak downstream demand, and stable but insufficient cost support from upstream markets. This has created an overwhelmingly bearish sentiment in the APAC Phosphonate market.
Europe
In Q2 2024, the European Phosphonate market experienced a notable uptick in prices driven by several key factors. This quarter saw heightened competition and an influx of low-cost imports creating a challenging landscape for domestic producers. However, consistent supply and strategic restocking ahead of the summer holidays bolstered market sentiment. The chemical industry's confidence began to rebound, supported by improved demand fundamentals across various downstream sectors such as textiles, water treatment, and paper and pulp. Despite persistent high energy and raw material costs, the market dynamics leaned towards a gradual price escalation. Focusing on Germany, which witnessed the most significant price fluctuations, the overall trends displayed a clear seasonal effect, with an uptick in consumer inquiries and demand correlating with pre-holiday restocking activities. The price changes in Germany showed a substantial 9.5% decrease from the same quarter last year, reflecting a further slump after economic downturns previously. Compared to the previous quarter in 2024, prices rose by 2.5%, underscoring a consistent growth trajectory. The first half of the quarter saw slightly lower prices compared to the second half, with a 2% increase as market conditions tightened and demand solidified. Conclusively, the quarter-ending price for Phosphonate ATMP-CFR Hamburg in Germany stood at USD 1160/MT. This steady rise in prices throughout Q2 2024 underscores a positive pricing environment, marked by moderate to high supply and a resurgence in demand, indicating a stable yet bullish market sentiment. Overall, this quarter has been characterized by a strong recovery in the phosphate market, with Germany at the forefront of this upward trend.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the pricing of Phosphonate in the North American region was a tale of mixed sentiments. In the USA, the overall trend leaned towards bearish, witnessing price declines over the quarter. Initially, Phosphonate prices dipped due to subdued demand, notably in water treatment and paper-making sectors. Operations were disrupted by severe weather, leading to temporary shutdowns.
Paper demand saw a 2% decrease, reflecting a broader slowdown in packaging. Supply chain interruptions in the Middle East caused delays in shipping, impacting Phosphonate trade. However, the last two months saw a slight price increase. Primarily, the uptick was influenced by increased costs of upstream materials like Phosphorus, driving up production expenses and consequently affecting Phosphonate pricing.
Moreover, elevated freight charges, stemming from supply disruptions in the Middle East and potential issues in the Red Sea and Suez Canal, continued to exert upward pressure on product prices. Overall, the demand in downstream water treatment and paper-making sectors remained subdued, resulting in reduced consumption and weaker market conditions. The downturn in the paper-making sector, coupled with declining packaging demand, further dampened the overall demand outlook in the region.
APAC
The first quarter of 2024 has been characterized by mixed trends in the pricing of Phosphonate in the APAC region. China experienced significant price changes during this period due to several factors. One key factor is the level of demand from downstream industries such as water treatment and cleaning. The demand has been moderate to high, driven by increased consumption and restocking activities. However, the overall demand has been tempered by the Lunar New Year holidays, which led to reduced industrial activities and limited market transactions.
In China, the pricing trends have been more pronounced compared to other countries in the region. The market has experienced a bearish sentiment, with prices declining due to weak consumer demand and high inventories. The Lunar New Year holidays and destocking activities have contributed to lower industrial activities and reduced demand for raw materials. Looking at the quarterly price changes, Phosphonate prices in Q1 2024 have remained relatively stable compared to the same quarter last year.
In conclusion, the pricing environment for Phosphonate in the APAC region during Q1 2024 was bearish overall, with China experiencing significant price declines. Factors such as demand, supply, and seasonality have influenced the market prices, leading to varying price trends in different countries. The latest quarter-ending price for Phosphonate ATMP 50%-FOB Shanghai in China was recorded at USD 960/MT.
Europe
The European Phosphonate market in Q1 2024 experienced a decline in prices, primarily influenced by factors such as increased imports of low-priced goods, lackluster consumer demand, and reduced manufacturing costs. Inquiries from downstream industries, including water treatment and cleansing, remained limited, leading to a decrease in market transactions. The majority of phosphonates in the region are sourced from neighboring countries.
Manufacturers adjusted their prices in response to lower manufacturing costs resulting from the decreased prices of upstream Phosphorus Trichloride. The overall market sentiment was bearish, with industrial activities remaining subdued and limited international demand. Overall, the Phosphonate pricing environment in Europe during Q1 2024 was negative, with prices experiencing a notable decline.
The market was influenced by factors such as increased imports, limited demand, and reduced manufacturing costs. The trend of lower prices was consistent throughout the quarter. In Germany, the price of Phosphonate ATMP-CFR Hamburg decreased by USD 30/MT (-2.7%) in Q1 2024, reaching a quarter-ending price of USD 1050/MT. The German economy continued to struggle, with poor demand across various segments.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Phosphonate market in the USA demonstrated mixed sentiments and the prices fluctuated throughout this period. In October, Phosphonate prices in the US surged due to elevated import costs, but by November, inflation subsided, bringing about improved business conditions. This positive trend persisted into December as inflationary pressures continued to ease. The heightened demand from water treatment and associated industries played a role in enhancing business conditions, while major exporting nations adjusted selling prices upward owing to increased production costs.
In November, heightened consumer spending and improved market activities bolstered overall economic conditions. Nevertheless, downstream industries faced only moderate demand. Despite apprehensions regarding a potential recession, inflation, and geopolitical uncertainties, consumer confidence in the US grew in both November and December, indicating optimism about future business conditions.
Overall, the Phosphonate market in North America was stable, and steady product procurement was observed overall. Throughout this quarter, high inflation, higher interest rates, and ongoing geopolitical tensions with China also influenced the market sentiments in the region.
APAC
The APAC region phosphonate market in Q4 2023 witnessed a stable market situation with a moderate supply. Domestic manufacturers operated at a moderate pace due to low purchase orders, resulting in sufficient inventory levels to meet consumer demand. However, production costs continued to increase as the cost support from upstream Yellow Phosphorus rose. One of the primary factors impacting the market was the moderate production rates in domestic manufacturing facilities, as indicated by the manufacturing PMI data. This, coupled with low purchase orders, contributed to the stable market situation. In terms of pricing, China experienced a bullish market with moderate supply. The prices of phosphonates, specifically DTPMP and ATMP, saw an increase of 2.1% and 2.8% respectively compared to the previous quarter. This upward trend can be attributed to the increased cost support from upstream Yellow Phosphorus. Overall, the APAC phosphonate market remained stable in Q4 2023, with moderate supply and production rates. The prices in China experienced a bullish trend due to increased production costs. The latest price of Phosphonate ATMP 50%-FOB Shanghai in China for this quarter is USD 995/MT.
Europe
The Phosphonate market in Europe during the fourth quarter of 2023 was characterized by a bearish sentiment and low demand from the detergent, cleaning, and water treatment industries. The market witnessed a decrease in prices due to imports of low-priced goods and a poor demand outlook. In Germany, the largest market for Phosphonate in the region, prices dropped further as consumer inquiries remained subdued and inflation fell to its lowest level since the Ukraine crisis. The overall market sentiments were weak, and market transactions were limited, leading to moderate supply and inventory levels. Looking at the price trends, there was a 4% decrease in prices compared to the previous quarter, indicating a decline in the market. However, the price in the current quarter remained stable at USD 1050/MT of Phosphonate ATMP-CFR Hamburg in Germany. The factors influencing the market included imports of low-priced goods, sluggish consumer demand, and fluctuations in energy prices. Overall, the market outlook for Phosphonate in the Europe region during the fourth quarter of 2023 was characterized by low demand and bearish pricing trends.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the Phosphonate market in the USA demonstrated mixed sentiments and the prices fluctuated throughout this period. In the first two months, amid the ongoing summer season, the demand outlook was positive, and steady inquiries from the downstream water treatment and other end-use industries were registered. As per the government GDP data, the economy improved at an increased pace from July to September, despite higher interest rates, depleted pandemic savings, and high inflation. Overall, the market transactions were usual and the trading atmosphere was normal. Albeit, in September, the prices decreased slightly as the demand conditions stagnated. Consumer inquiries remained weak, particularly with the end of the high-demand summer season and the buyers were mainly focusing on long-term orders of the product. Overall, the market transactions remained sluggish, and limited product procurement was observed overall. Throughout this quarter, high inflation, higher interest rates, and ongoing geopolitical tensions with China also influenced the market sentiments in the region.
APAC
Over three months from July to September in the Chinese domestic market, the Phosphonate industry witnessed notable fluctuations in prices and market conditions. In July, the market sentiments for Phosphonate took a hit due to weak demand from downstream sectors like detergents, cleaning, and water treatment. Consequently, the prices saw a significant drop. Manufacturing activities, as indicated by the NBS manufacturing PMI, remained subdued at 49.3, reflecting a decrease in factory operations due to declining new orders and export sales. Additionally, factory gate deflation led to shrinking profit margins for domestic manufacturers. Purchases of Phosphonate were primarily driven by demand, and production rates were maintained. August saw a further decline in Phosphonate prices, with weak demand persisting. Downstream sectors showed low interest as material availability was sufficient. While domestic manufacturing activities improved slightly, there was some cost support from increased prices of upstream Yellow phosphorus. In September, Phosphonate prices rebounded due to improved demand from the detergent, cleaning, and water treatment industries. Production costs rose with increased pressure from upstream Yellow phosphorus prices. As of September 2023, the prices of Phosphonate in China were assessed at USD 1290 per tonne.
Europe
Over three months from July to September in the German domestic market, the Phosphonate industry experienced a persistent decline in prices and challenging economic conditions. In July, Phosphonate prices in Germany decreased by 6.0%, reflecting a continuous downward trend. This decline was exacerbated by the Eurozone's manufacturing PMI falling to 42.7, indicating a year of consecutive contractions due to higher borrowing costs imposed by the European Central Bank (ECB). The German manufacturing PMI also deteriorated, dropping to 38.8, signifying worsening conditions in the German manufacturing sector. August witnessed further price drops for Phosphonate in Germany as weak demand continued to affect the market sentiments. The German Manufacturing PMI fell to 39.1, remaining well below the 50-point benchmark, primarily due to consumer uncertainty, instability in the building sector, and a lack of investment interest. In September, Phosphonate prices continued to decline in the German market. Low-priced imports and poor demand outlook were contributing factors. Consumer demand in water treatment and cleansing industries remained weak, with consumers making purchases in small volumes. Furthermore, inflation in Germany reached its lowest level since the Ukraine crisis, with consumer prices growing by 4.3% year on year in September, indicating economic challenges for Germany. As of September 2023, the prices of Phosphonate in Germany were assessed at USD 1078.
For the Quarter Ending June 2023
North America
During Q2 2023, the US phosphonate market experienced steady growth, driven by robust demand from key end-use industries. The water treatment sector remained a major consumer of phosphonates, utilizing them as effective scale and corrosion inhibitors in various applications, including boilers, cooling towers, and water systems. The demand for phosphonates in the detergent and cleaning industry also saw consistent growth, where they serve as chelating agents, enhancing the cleaning efficiency by sequestering metal ions and removing hard water deposits. Moreover, the agriculture industry showed sustained interest in phosphonates, employing them as plant growth regulators and anti-fungal agents to improve crop health and protect plants from diseases. In the oil and gas sector, phosphonates were in demand as scale and corrosion inhibitors, ensuring the integrity of drilling operations, production systems, and pipelines. The pharmaceutical industry continued to utilize phosphonates as intermediates in the synthesis of various drugs and active pharmaceutical ingredients. Additionally, the construction and personal care industries demonstrated a steady uptake of phosphonates for their concrete admixtures and used as stabilizers and chelating agents in personal care products. Overall, the US phosphonate prices witnessed positive growth momentum during Q2 2023, supported by the diverse applications and strong demand from key end-use sectors. After Q2 2023 ended, Phosphonate prices in the US were assessed at USD 1350 per MT on a FOB basis
APAC
In Q2 2023, the Indian phosphonate market witnessed a bearish trend as prices dropped by 1.8% in the domestic market. This decline was attributed to lower production costs, driven by weaker cost support from upstream raw materials. The cost pressure from phosphorus trichloride decreased by 1.9%, and prices of upstream yellow phosphorus dropped by 1.5% in June, contributing to lower manufacturing costs. Demand outlook remained firm in the downstream detergent and cleansing industries both domestically and overseas. The manufacturing PMI decreased to 57.8 in June from May's 58.7, indicating steady growth in factory activities. Supply chain operations remained smooth, with no major issues reported. Throughout the quarter, phosphonate prices fluctuated, influenced by demand from the detergent and cleaning industries. The market situation was bearish, and supply remained moderate while demand ranged from low to moderate. As of June 2023, Phosphonate prices in Asia were assessed at USD 1060 per MT on CFR basis.
Europe
The European phosphonate industry experienced a mixed demand landscape during Q2 2023. Demand remained stable from the downstream solvent industry, indicating a consistent need for phosphonates in various solvent applications. However, the consumption from the dyes and explosives industry remained dull, primarily due to the underwhelming performance of the construction and mining sectors. LANXESS's quarterly report highlighted the impact of high inflation rates, declining demand, and weak cost support from upstream Toluene, which affected the overall consumption of phosphonates in these industries. Additionally, the European phosphonate market faced challenges from the freight market, which declined throughout the quarter due to slowed trading activities in Europe. This decline in the freight market led to eased shipping costs and increased availability of cheaper imports from the Asian market, influencing the competitive landscape for phosphonates in the region. Despite the mixed demand scenario and market challenges, the stable demand from the downstream solvent industry provided some support to the phosphonate market in Europe. Moving forward, the industry may need to closely monitor the developments in the construction and mining sectors, as well as keep an eye on the global energy market dynamics, to adapt and navigate through any potential headwinds in the coming quarters. After the conclusion of Q2 2023, Phosphonate (ATMP) prices in Europe were assessed at USD 1290 per MT on FD basis.
For the Quarter Ending March 2023
North America
In the North American market, the Phosphonate market observed a mixed pricing trend in the first quarter of 2023. The market sentiments for the product were in positive territory in March 2023 amid increased production rates and a surge in demand from the downstream cleaning and water treatment industries. In the next month, the market prices of Phosphonate increased further owing to stronger demand in the downstream cleaning and water treatment industries and active inquiries from domestic as well as international market participants. Amid looming inflationary pressure, uncertainties regarding the economy and the collapse of two banks in the US resulted in a weaker consumer demand outlook in the last month of Q1, and hence, the market sentiments for Phosphonate exhibited a bearish trend this month.
APAC
In the first quarter of 2023, the Phosphonate market in China showcased a bullish pricing trend. In the first month of Q1, the market prices increased amid constrained availability in the domestic market and stronger cost support from the upstream Yellow phosphorus. In the second month, the prices surged amid the resumption of manufacturing activities and paced up downstream demand from the water treatment and cleaning industry. Wherein the prices inclined further in the last month owing to increased procurement from domestic consumers. The overall supply of the product was adequate and domestic manufacturers maintained stable production rates in the region.
Europe
The overall pricing of Phosphonate in the European market demonstrated mixed market sentiments in the first quarter of 2023. The product's prices surged in the first month of Q1 due to the lack of market competitiveness in the region as the Asian market activities remained at lower levels in this period. In February, market prices declined as inflationary pressures and uncertainties regarding economic conditions affected consumer sentiments in the region, resulting in limited purchases of the product. Overall market prices dropped further in March due to reduced procurement from the downstream cleaning and water treatment industries. Also, the manufacturing PMI fell amid weaker demand and a drop in input costs in the European region this month, resulting in bearish market sentiments for Phosphonate in the region.
For the Quarter Ending December 2022
North America
The Phosphonate market in the North American market has fluctuated within rangebound during the first half of the quarter. That is further coupled with the reduced operations at the manufacturing facilities impacting the demand in the domestic market. Although to sustain the netbacks efficiently, producers adjusted the operating rates in the domestic market. In addition, the demand has dropped in the latter half, further coupled with a blizzard storm by the quarter end, enforcing a negative outlook for Phosphonate in upcoming terms. Although, the cost support from the feedstock Yellow Phosphorus has staggered on lower levels, assisting in depressurizing the overall market scenario to a certain extent. Therefore, the DDP USGC discussion for Phosphonate-ATMP was assessed at USD 1564 per tonne during the quarter ending December 2022.
Asia Pacific
Overall, the Phosphonate market sentiments in the APAC region were mixed during the fourth quarter of 2022. For the majority period, the Phosphonate market was dictated by the cost support from the Yellow Phosphorus market. The availability of sufficient feedstock has proportionally impacted the supply outlook of Phosphonate in the Chinese domestic market. At the same time, the demand outlook has remained sluggish amidst the strict COVID norms implemented by the Chinese authorities, although at the start of the quarter, the impact of energy rationing was observed. In contrast, the demand in the prominent Southeast Asian markets has also dropped in November amidst the peak festive season. As a ripple effect, the FOB Shanghai discussions for Phosphonate-ATMP were assessed at USD 1225 per tonne in December 2022.
Europe
The Phosphonate in the European markets has witnessed mixed sentiments during the fourth quarter of 2022. The market obtained a substantial gain in October, and the domestic outlook has sustained adequate recovery against the losses that occurred during the summer break. Although the gains were short-lived amidst the rising inflation and interest rates, consumer sentiments are more conservative than anticipated. At the same time, the insufficient import of Yellow Phosphorus has pressurized the supply outlook considerably. The stance of the European Union over the Russian energy supplies has levied a considerable impact on the operating cost of manufacturing. In response, several producers and downstream players adjusted the operating rates to sustain the supply-demand dynamics of Phosphonate in the volatile environment across the region. Although, the offers attained slight stability by the second half of the quarter. As a ripple effect, the FD Hamburg discussions for Phosphonate-ATMP were assessed at USD 1534 per tonne.
For the Quarter Ending September 2022
North America
Overall the Phosohonate market in the North American region is pressurized in terms of the tightened supply outlook. This development is majorly attributed to the limited imports from overseas markets. The limited operation in China amidst the power rationing followed by the COVID curbs and new energy reforms levied a significant impact across the value chain. In addition, the demand outlook has remained stagnant as the market participants were consistently restocking to avoid any hurricane-related disruptions across the value chain. As a ripple effect, the DDP USGC discussion for Phosphonate ATMP was assessed at USD 1412 per tonne during September 2022.
Asia Pacific
In the third quarter of 2022, the Phosphonate market in the Asia Pacific region witnessed mixed sentiments amidst the uncertain supply-demand dynamics. The curtailed operational rates at the manufacturing facilities have pressurized the supply outlook in the Chinese domestic market. In addition, the cost-support from feedstock has also soared. The Southeast Asian markets witnessed a dull demand amidst the ongoing monsoon season. However, inquiries from the western markets have remained stagnant or improved in the latter half of the quarter. As a ripple effect, the FOB Shanghai discussions for Phosphonate ATMP were assessed at USD 1300 per tonne during the quarter ending September 2022.
Europe
In the third quarter of 2022, the European Phosphonate market witnessed bearish sentiments. This development is majorly attributed to the silent market trend for the majority term in the quarter. This market trend is attributed to the long holidays in the European markets. In addition, the market witnessed a slight pace in September. When the market rebounded, the recovery remained limited amidst the rising inflation and depreciating value of the EUR against the USD. As a ripple effect, the DDP Antwerp discussions were assessed at USD 1540 per tonne for Phosphonate ATMP in September.
For the Quarter Ending June 2022
North America
Prices of Phosphonate witnessed a surge in quarter 2 of 2022 due to disrupted trading activity from China to the US amid the US-China trade war. Transportation from China was halted in April amid port congestion at several container terminals. US market players suffered from inadequate availability of inventories due to high raw material costs and high inflation rate throughout the second Quarter of 2022. Traders of the USA are occupied with finding new opportunities from different producing countries of Phosphonate to satisfy demand and attain marginal profits in the local market. Conclusively, a shortage of inventories and crippled supplies resulted in a surge of Phosphonate by nearly 2% in the North American market. Moreover, high energy values caused input costs to burden the enterprises for Phosphonate in the region.
APAC
In the Asia Pacific region, prices of Phosphonate showed an upward trend during Quarter 2 of 2022 for both ATMP and DTPMP grades. The inclination seen in the Phosphonate prices in April and June due to the high inflation rate amid War and disruption in supplies from Chinese ports throughout this quarter. Demand for the product from the downstream agriculture and water treatment industry witnessed robust coupled with inadequate availability of inventories in the APAC market in April. Besides, bearish market sentiments for Phosphonate were seen in the Indian market in June, backed by the reduction in customs duty and depreciation in Indian currency against the US dollar. Thus, the Phosphonate ATMP was quoted at INR 174500/MT, and DTPMP was assessed at INR 215200/MT Ex-Vadodara (India) in June.
Europe
Phosphonate Prices in the European market showcased an upward trend with a surge of 2% during Quarter 2 of 2022 due to a high inflation rate amid War in the European region. The ongoing conflict between Russia-Ukraine created upward pressure on the commodities in the European regional market because of a shortage of inventory, which hampered production activities. Meanwhile, Phosphonate is majorly imported by China in the European market, so the halted production in China under strict covid lockdown restrictions also conclusively impacted the prices of Phosphonate throughout this quarter. Inclination Input costs for the product seen backed by the high energy values caused the upward in the Phosphonate prices in the second quarter of 2022.
