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.
