For the Quarter Ending September 2024
North America
The third quarter of 2024 for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in North America has seen a stable pricing environment. Key factors influencing market prices included steady demand from various sectors, such as oilfield and water treatment plants, alongside consistent manufacturing activities. High import prices from major exporting nations contributed to the price stability.
In the USA, which experienced the most significant price changes, THPS prices remained relatively stable throughout the quarter. Seasonal factors, like the rainy season impacting demand, and the correlation between supply and demand dynamics played a crucial role in maintaining price stability.
The quarter recorded a marginal decrease of 1 percent from the previous quarter i.e., Q2 2024, with no significant price difference between the first and second half of the quarter. The quarter-ending price for THPS in the USA stood at USD 1470/MT CFR Los Angeles basis, reflecting a stable pricing trend in the region. No major disruptions or plant shutdowns were reported during the quarter.
APAC
In Q3 2024, Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) prices in the APAC region experienced a notable decrease, primarily influenced by a combination of factors impacting the market dynamics. The market sentiment was predominantly negative, with prices facing a consistent downward trend. Factors such as reduced demand from key sectors, oversupply situations, and lower procurement activities contributed to the declining prices. The market also witnessed disruptions, with a few plant shutdowns affecting supply levels. China, being a key player in the THPS market, saw the most significant price changes during the quarter. The overall trend in China followed the regional pattern of decreasing prices, reflecting a synchronized market movement. Seasonal fluctuations and correlation in price changes were evident, with a clear downward trajectory observed throughout the quarter. Marking a 1.1% decrease from the same quarter last year indicated a downward trend, with a 3.7% decreased from the previous quarter highlighting stability amid ongoing market pressures. The quarter ended with the latest price of USD 1240/MT FOB Shanghai for THPS in China, marking a decrease from the previous quarter. This price comparison highlights the challenging pricing environment that prevailed in the APAC region during Q3 2024.
Europe
Q3 2024 proved to be a challenging period for THPS pricing in Europe, with market prices witnessing a significant decline. Several key factors contributed to this downward trend, including weak demand from the water treatment industries, which played a pivotal role in the declining market. Instability in raw material costs, particularly feedstock like tetrahydrofuran, failed to offer the necessary cost support, further driving prices downward. Market momentum continued to weaken, with insufficient demand from downstream sectors exacerbating the supply-demand imbalance in Europe. Poor performance in the downstream industries, facing reduced demand, led to a pessimistic market outlook, intensifying pressure on THPS prices in the European market. Germany, in particular, experienced the most substantial price declines, with a significant year-on-year decrease and a notable quarter-on-quarter drop, especially between the first and second halves of the quarter. By the end of Q3, the quarter-ending price in Germany reflected the prevailing bearish sentiment in the market, marking a continuation of the downward pricing trend.
South America
In Q3 2024, the Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) market in South America experienced relative stability in pricing. Several key factors influenced market prices during this period. Strong demand from sectors like oilfield operations and water treatment plants, along with high import prices and ongoing procurement activities, contributed to the stable pricing environment. The market also saw steady growth in trading activities and consistent manufacturing performance, supporting the stable prices. Despite challenges such as disruptions and plant shutdowns, the market maintained its equilibrium. Brazil, with the most significant price changes in the region, witnessed fluctuations but overall stability in THPS prices. The market in Brazil experienced a balanced supply and demand outlook, with moderate price changes. Seasonal factors like the rainy season further influenced demand, while factors like high import prices and domestic consumption levels played a role in price fluctuations. The quarter recorded a slight decrease from the previous quarter but remained stable overall, with the latest quarter-ending price standing at USD 1540/MT CFR Santos in Brazil.
For the Quarter Ending June 2024
North America
In Q2 2024, Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) experienced a marked price increase in the North American region, underpinned by several critical factors. Market dynamics were heavily influenced by robust demand and rising import prices from key exporting regions. The water treatment and paint and coatings sectors saw heightened activity during the summer months, driving significant demand for THPS. Additionally, the automotive industry's recovery further bolstered the paint and coatings demand. Supply chain disruptions, including logistical challenges and port congestion, coupled with elevated freight charges stemming from geopolitical tensions, exacerbated the upward price pressure.
Focusing on the USA, the THPS market exhibited substantial price changes, with the overall trend reflecting a bullish sentiment. Seasonality played a key role, with summer procurement activities driving demand, particularly in the water treatment segment. The price change from the previous quarter was recorded at 3%, while the differential between the first and second half of the quarter was noted at 6%. This consistency in rising prices underscores a positive pricing environment. The USA, experiencing the most significant price fluctuations, recorded a quarter-ending price of USD 1530/MT CFR Los Angeles. The cumulative effect of robust demand, logistical constraints, and production disruptions unequivocally led to a favorable pricing environment for THPS in Q2 2024.
APAC
In Q2 2024, the Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) market in the APAC region experienced a significant upward pricing trend. This quarter saw a marked increase in THPS prices, driven by robust demand across diverse industries including water treatment and paint and coatings. Seasonal factors, particularly heightened household activities and construction during summer, substantially contributed to the price surge. Additionally, rising import costs from exporting nations and elevated energy prices added to production costs, further propelling prices upward. In the backdrop of these dynamics, geopolitical disruptions and port congestions, particularly in critical shipping hubs, exacerbated supply chain challenges, leading to compounded impacts on THPS pricing.
Focusing on China, the country experienced the most pronounced price changes within the region. The overall trend was bullish, underpinned by strong domestic and international demand. Positive market sentiment, spurred by optimistic economic indicators and government initiatives aimed at stabilizing the property market, fueled procurement activities. Seasonality played a pivotal role, with summer-related demand spikes significantly driving prices. Comparing the first and second halves of the quarter, there was a notable 3% increase in prices, reflecting sustained demand growth.
The latest quarter-ending price for THPS FOB Shanghai was recorded at USD 1350/MT. The positive pricing environment was further influenced by plant disruptions including [Plant Shutdown Names] that tightened supply, adding upward pressure on prices. Consequently, the THPS market in the APAC region during Q2 2024 demonstrated a robust and consistently increasing pricing sentiment, signaling a positive outlook for stakeholders.
Europe
During Q2 2024, the pricing environment for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in the European region was influenced by various factors. Overall, the market experienced an upward trend, with some countries seeing price increases while others saw moderate gains. However, the Netherlands market experienced the most significant price changes during this period.
Throughout the quarter, THPS prices in the Netherlands' domestic market saw an upward trend. These increases were driven by several factors, with the summer season playing a significant role. As the country imports THPS, the season led to heightened domestic demand from water utilities. Additionally, the market benefited from robust demand from downstream industries, including water treatment, pulp, and paper. Import prices remained high, further contributing to the upward price trajectory.
The market was influenced by factors such as import prices, production costs, and demand from downstream industries. Compared to the same quarter last year, THPS prices in Q2 2024 showed an increase, reflecting the positive market sentiment and increased procurement activities observed in April and May.
Overall, the pricing landscape for THPS in Europe during Q2 2024 remained favorable, with strong demand and high import prices driving the upward trend.
South America
THPS prices in the Brazilian domestic market maintained their upward trend, driven by consistent demand, high import prices, and positive downstream sentiment. Heightened household activities and increased demand from the water treatment and paint and coating sectors, particularly in the water treatment sector during the summer season, further supported the price increase. The manufacturing and industrial sectors also demonstrated resilience and growth, boosting THPS demand.
Market sentiment remained positive, leading businesses to increase their purchase volumes and inventories in anticipation of continued demand growth. These developments indicated positive economic health, creating a favorable market environment for THPS. However, challenges posed by high freight costs and inventory shortages created pressure on the supply chain. Spot prices of most chemicals surged due to rising freight and container costs, coinciding with a seasonal uptick in demand. The downstream water treatment sector showed continued strong growth, driven by increased consumption both domestically and internationally.
The paint and coating industry also saw improvements, particularly in the construction sector. With the Brazilian Chamber of the Construction Industry projecting a 2.3% growth, expectations for new projects fueled purchases in downstream sectors like paint and coatings. Market sentiment remained cautiously optimistic, supported by strong sales figures indicating sustained demand, though adjustments were ongoing in response to affordability concerns in certain segments.
For the Quarter Ending March 2024
North America
During Q1 2024, the pricing environment for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in the North America region was influenced by various factors. Overall, the market witnessed a mixed trend, with some countries experiencing price increases while others saw declines. However, the USA market experienced the maximum price changes during this period.
Throughout the quarter, prices of THPS in the USA, experienced fluctuations. Influencing these fluctuations were various factors, notably the Lunar New Year festivities in February, which tightened domestic supply due to the country's status as an importer. This resulted in heightened demand from water utilities. However, the market also encountered obstacles, including oversupply, low import prices, diminished demand from downstream industries, and decreased procurement activities observed in January and March.
The market was influenced by factors such as import prices, production costs, and demand from downstream industries such as water treatment, pulp, and paper. Compared to the same quarter last year, THPS prices in Q1 2024 showed a decrease. The latest quarter-ending price for THPS in the USA was USD 1455/MT CFR Los Angeles, reflecting the impact of these factors on the market dynamics.
APAC
During Q1 2024, the pricing environment for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in the APAC region was influenced by various factors. Overall, the market witnessed a mixed trend, with some countries experiencing price increases while others saw declines.
In China, the largest market for THPS, prices fluctuated throughout the quarter. The market was influenced by factors such as the Chinese Lunar New Year festivities during February, which led to a tightening of domestic supply and increased demand for THPS in water utilities. However, the market also faced challenges, including oversupply and low demand from downstream industries and reduced procurement activities. As a result, THPS prices in China experienced a decline during January and March.
In general, the pricing trend for THPS in the APAC region showed seasonality, with prices usually influenced by factors such as festivals and weather conditions. Additionally, there was a correlation between price changes in China and other countries in the region, reflecting the interconnectedness of the market. Compared to the same quarter last year, THPS prices in Q1 2024 showed a decrease. The quarter-ending price for THPS in China was USD 1320/MT FOB Shanghai
South America
During Q1 2024, the pricing environment for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in the South America region was influenced by various factors. Overall, the market witnessed a mixed trend, with some countries experiencing price increases while others saw declines. However, the Brazil market experienced the maximum price changes during this period.
Throughout the quarter, prices of THPS in the Brazil, experienced fluctuations. Influencing these fluctuations were various factors, notably the Lunar New Year festivities in January and February, which tightened domestic supply due to the country's status as an importer. This resulted in heightened demand from water utilities. However, the market also encountered obstacles, including oversupply, low import prices, diminished demand from downstream industries, and decreased procurement activities observed in March.
The market was influenced by factors such as import prices, production costs, and demand from downstream industries such as water treatment, pulp, and paper. Compared to the same quarter last year, THPS prices in Q1 2024 showed a decrease. The latest quarter-ending price for THPS in the Brazil was USD 1520/MT CFR Santos, reflecting the impact of these factors on the market dynamics.
Europe
During Q1 2024, the pricing environment for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in the European region was influenced by various factors. Overall, the market witnessed a mixed trend, with some countries experiencing price increases while others saw declines. However, the Netherland market experienced the maximum price changes during this period.
During the quarter, THPS prices fluctuated within the Netherlands' domestic market. These fluctuations were driven by several factors, with the Lunar New Year celebrations in February playing a significant role. As the country imports THPS, these festivities led to a tightening of domestic supply, prompting increased demand from water utilities. However, the market faced challenges, including oversupply, reduced demand from downstream industries, and decreased procurement activities observed in January and March, along with low import prices.
The market was influenced by factors such as import prices, production costs, and demand from downstream industries such as water treatment, pulp, and paper. Compared to the same quarter last year, THPS prices in Q1 2024 showed a decrease.
For the Quarter Ending December 2023
North America
In Q4FY23, TetraKis (Hydroxymethyl) Phosphonium Sulfate (THPS) prices in the USA market exhibited mixed sentiment, rising in October and November and declining in December. In October, THPS prices increased in the US due to an ongoing uptrend in the Asian market, with positive demand from water treatment sectors and elevated feedstock costs from Phosphine and Formaldehyde.
The US economy rebounded, strengthening market fundamentals, and imports from China became costlier. November saw a sustained rise in THPS prices influenced by the Asian market, stable interest rates, and robust economic conditions in the US. The manufacturing sector slightly improved, and imports remained steady. In December, THPS prices decreased in the US due to an Asian market downturn, impacting global prices. Diminished demand from downstream paper industries led to reduced procurement plans, affecting market activity.
The US Manufacturing PMI declined, indicating weakened demand conditions. Oversupply, destocking efforts, and a decrease in feedstock formaldehyde prices contributed to the downward pressure on THPS prices in the US. Overall, a surge in demand in the domestic market, positive economic conditions, and an increase in feedstock prices characterized the dynamics of THPS prices in Q4FY23. As of December, THPS prices in USA were assessed at USD 1440/MT CFR Los Angeles.
APAC
In Q4FY23, TetraKis (Hydroxymethyl) Phosphonium Sulfate (THPS) prices in the Chinese market displayed mixed sentiment, rising in October and November, and declining in December. In October, THPS prices increased due to elevated feedstock costs from Formaldehyde and Phosphine, with bullish market sentiments and increased overseas inquiries. November saw a continuous rise in THPS prices driven by increased feedstock costs, while demand from oil and gas and water treatment sectors remained moderate. Limited material availability posed challenges, and the PMI decline indicated ongoing industrial contraction. In December, THPS prices in China declined due to low formaldehyde feedstocks and reduced demand, leading to low market activity. The oversupply situation, influenced by expanded production capacity and the entry of new manufacturers, prompted destocking efforts and a downward price trend. The official PMI decline for December marked the third consecutive month of contractions, contributing to the overall downward pressure on THPS prices. The surplus inventories expanded production capacity, and reduced feedstock prices further led to a market-wide reduction in THPS prices, reflecting weakened demand from downstream paper industries and constrained procurement activities on both domestic and global scales. As of December, THPS prices in China were assessed at USD 1380/MT FOB Shanghai.
Europe
In Q4FY23, TetraKis (Hydroxymethyl) Phosphonium Sulfate (THPS) prices in the European market displayed mixed sentiment, rising in October and November, and declining in December. In October and November, the prices surged in the Netherlands due to an ongoing uptrend in the Asian market, driven by robust demand from water treatment sectors and increased feedstock costs of Phosphine and Formaldehyde. However, in December, prices in the Netherlands saw a decline due to an Asian market downturn, affecting global prices as manufacturers strategically destocked, aiming to make room for new inventory. Diminished demand from downstream paper industries led to reduced procurement plans, impacting market activity. Factors such as oversupply, destocking efforts, and a decrease in feedstock formaldehyde prices contributed to the downward pressure on THPS prices in the Netherlands. Despite these fluctuations, the overall trend in Q4FY23 was characterized by a surge in demand in the domestic market, positive economic conditions, and an increase in feedstock prices. As of December, THPS prices in the Netherlands were assessed at USD 541/MT.
South America
The fourth quarter of 2023 was a challenging period for the Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) market in South America. The market experienced significant fluctuations due to several key factors. Firstly, there was a plant shutdown at a major THPS production facility, resulting in limited supply and higher prices. Additionally, the market was impacted by the ongoing supply chain disruptions, particularly in the transportation sector, which further constrained the availability of THPS. Furthermore, demand from downstream industries such as water treatment and oil and gas remained strong, contributing to the overall tight market conditions. Among the countries in South America, Brazil experienced the most significant changes in THPS prices during the quarter. The prices in Brazil saw a large percentage decrease of -53% compared to the previous quarter, indicating significant market volatility. Within the quarter, there was a slight decline of -1% in prices during the second half, reflecting the market's response to supply and demand dynamics. Despite these fluctuations, Brazil's THPS market remained bullish overall, driven by strong demand and limited supply. THPS Prices were assessed at USD 1450 per MT after conclusion of Q4 2023 on CFR basis reaching Brazilian ports.
For the Quarter Ending September 2023
North America
TetraKis (Hydroxymethyl) Phosphonium sulfate (THPS) prices have continued to rise in the US market during the third quarter of 2023 in response to bullish buying sentiments within the domestic market. The inquiries from downstream oil and gas and wastewater treatment sectors have remained strong amid high consumption from the end-user industry, which supported the prices to follow the uptrend in the domestic market. On the other hand, imports from the exporting market in China have turned costly as prices increased in the Chinese market amid strong demand, which in turn resulted in the high imported prices of THPS. Furthermore, the freight charges have also increased from China to the US east and west coast. Additionally, the US chemical industries face a dual threat as scorching temperatures and prolonged hot weather are causing water levels on the Mississippi and Ohio rivers to decrease, which in turn impacts the trade activities in the domestic market. Moreover, the availability of finished stock of THPS was insufficient, which exerted upward pressure on the prices of THPS in the domestic market.
Asia- Pacific
TetraKis (Hydroxymethyl) Phosphonium Sulfate (THPS) has witnessed an upward trend in the Chinese market throughout the third quarter of 2023 on account of firm demand and high feedstock prices. The cost pressure from feedstock Phosphine and formaldehyde was sufficient as its prices settled on the higher end in the given time frame. Furthermore, global crude oil prices have continued to rise due to production cuts by Saudi Arabia and Russia, which impacted several downstream markets, including THPS. Market players reported demand from the downstream oil and gas and wastewater treatment has remained strong due to a rise in consumption from the end-user industry, which promoted the manufacturers to revise their quotation in the domestic market. At the same time, inquiries from overseas markets have also increased, which further supported the prices to follow the uptrend in the domestic market. Additionally, the manufacturing firms were operating at high rates to match the supply demand. In addition, the China Manufacturing Purchasing Manager Index increased from 49.7 in August to 50.2 in September, indicating an expansion in new orders. Furthermore, the level of inventories was enough to cater to the overall downstream demand.
Europe
TetraKis (Hydroxymethyl) Phosphonium Sulfate (THPS) has witnessed a mixed trend across the European market during the third quarter of 2023. During July, prices of THPS decreased in the German market due to low-cost pressure from feedstock Phosphine and formaldehyde. The demand for THPS from the downstream oil and gas, textile, and wastewater treatment sector have remained muted, which has weighed down the prices of THPS in the domestic market. The market transactions were relatively average as the enthusiasm of terminal firm to enter the market were not strong. Therefore, prices of THPS operated at a low level in the domestic market. However, during August and September, prices of THPS have inched higher on the back of an ongoing uptrend in the Asian market. The feedstock formaldehyde and Phosphine prices have increased, which in turn led to high production costs of THPS in the domestic market. The demand from the downstream industry has improved, albeit at a smaller pace. The material availability was adequate to meet the existing downstream demand.
South America
TetraKis (Hydroxymethyl) Phosphonium sulfates (THPS) prices have remained on the positive side in the Brazil market throughout the third quarter of 2023 on account of bullish buying sentiments in the domestic market. The demand for THPS from the downstream oil and gas and wastewater treatment sector has continued to rise amid high consumption from the end-user industry, which supported the prices to follow the uptrend in the domestic market. On the other side, according to the National Statistics Institute, IBGE Brazil's inflation increased in September as the central bank weighs further interest rate cuts for Latin America's biggest economy. The year-over-year inflation rate came in at 5.19 percent. In September, that put inflation above the central bank's target ceiling of 4.75 percent. Furthermore, imports from the exporting market, China have turned costly as prices increased in the Chinese market, which in turn resulted in the high imported prices of THPS. Moreover, the availability of finished stock of THPS was insufficient, which exerted upward pressure on the prices of THPS in the domestic market.
For the Quarter Ending June 2023
North America
Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) prices have constantly increased in the USA market during the second quarter of 2023. Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) demand from the downstream water treatment industry coupled with strong offtakes from the flame retardant industry in the domestic market. Moreover, the demand-supply gap increased along with firm production costs. Meanwhile, towards the end of the quarter, Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) prices remained firm due to healthy demand from both domestic and international markets, while the ample inventory level dropped, prompting the manufacturer to drop their price quotation. Furthermore, costly imports from Asia further weighed on the prices of Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in the regional market. After the conclusion of Q2 2023, THPS prices in the US have been assessed at USD 1155 per MT on a CFR basis.
Asia- Pacific
Prices of Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) have witnessed bullish sentiment in China during the second quarter of 2023. Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) prices improved in the Chinese market owing to the firm production cost. However, upstream Phosphorous trichloride prices eased towards the end of the quarter. Demand from water treatment, solvent, and other industries has been bullish, while the limited material availability in the market has led to price increases in the domestic market. Meanwhile, demand from the overseas market has also risen. In addition, under the influence of persistent lockdown implementation along with zero COVID policy, manufacturers have started facing a labor shortage coupled with supply chain disruption, which majorly affects logistical constraints. Furthermore, during the second half of Q4, Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) prices remained strong owing to robust demand and sufficient material availability in the market. In the Chinese market, after the conclusion of Q2 2023, THPS prices have been assessed at USD 1095 per MT on a FOB basis.
South America
During the second quarter of 2023, Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) witnessed a consistent upward trajectory in prices within the USA market. This price surge was primarily driven by the robust demand for THPS originating from the water treatment sector downstream and bolstered by significant orders from the domestic flame-retardant industry. This surge in demand, coupled with a widening gap between demand and supply, was further exacerbated by increasing production costs. Meanwhile, the demand from the oil and gas industry remained underwhelming as the bearish sentiment kept the energy market on the softer side. As the quarter progressed, the prices of THPS remained resilient, underpinned by strong demand both domestically and internationally. This sustained demand led to a reduction in available inventory levels, prompting manufacturers to adjust their pricing strategies downward. Additionally, the impact of costly imports from Asia exerted additional downward pressure on THPS prices in the regional market. As a result, although prices remained firm due to consistent demand, the decrease in inventory levels and competitive imports prompted manufacturers to adjust their pricing strategies. Thus, THPS prices in Brazil were assessed at USD 1160 per MT on a CFR basis.
