For the Quarter Ending March 2024
North America
The first quarter of 2024 saw a weak price trend for Tetra Potassium Pyrophosphate (TKPP) in the United States. The winter months typically experience a dip in demand for TKPP. Industries like food processing and agriculture, major consumers of TKPP, have lower production needs during this period. This slack in demand puts downward pressure on prices.
Phosphoric acid and potassium chloride, the key raw materials for TKPP production, witnessed a price decline in January and February. This decrease in feedstock costs presented an opportunity for manufacturers to lower their final TKPP prices, further amplifying the downward trend. As March arrived, the agricultural sector geared up for the spring planting season. This seasonal shift led to a rise in demand for TKPP, a crucial additive in fertilizers.
This price fluctuation highlights the interplay between demand cycles and raw material costs in the TKPP market. While January and February presented a buyer's market with lower prices due to reduced demand and favorable feedstock costs, March brought a shift towards a seller's market with higher prices driven by increased agricultural activity.
APAC
In Q1 2024, the Tetrapotassium Pyrophosphate (TKPP) pricing dynamics in the APAC region were influenced by various factors with the overall trend showing a bearish sentiment. The demand for TKPP remained low, both domestically and internationally, particularly in end-user segments such as detergents and the cleaning industry during January 2024. The Chinese economy struggled to gain momentum, despite government efforts to inject optimism through policies. The production side saw a declining trend in the prime raw materials potassium carbonate and phosphoric acid, which eased the production cost of TKPP. However, the industry faced headwinds from the destocking season, where companies reduced their inventory levels, further dampening demand. However, China's Tetrapotassium Pyrophosphate market exhibited surprising stability during March 2024 which was attributed to a cautious approach adopted by the downstream surfactant and other end-use industries. The demand for Tetrapotassium Pyrophosphate, a crucial additive in surfactant production, remained moderate throughout the period. Looking at the year-over-year comparison, the TKPP price in Q1 2024 decreased compared to the same quarter last year. Additionally, the price in Q1 2024 decreased compared to the last quarter of 2023.
Europe
The European market for Tetra Potassium Pyrophosphate (TKPP) witnessed a sluggish price trend in the first quarter of 2024. The winter months in Europe generally translate to lower demand for TKPP. Industries like agriculture and food processing, major consumers of TKPP, operate at a slower pace during this period. This lack of demand creates an environment where suppliers have to compete, driving prices downward. Phosphoric acid and potassium chloride, the essential ingredients for TKPP production, saw a price decrease in January and February. This decline in raw material costs presented a window of opportunity for European manufacturers to reduce their production expenses. The lower production cost allowed them to offer TKPP at more competitive prices, further amplifying the downward trend. As March arrived, the European agricultural sector began gearing up for the spring planting season. This seasonal shift triggered a surge in demand for TKPP, a vital component in fertilizers. With demand outstripping existing supply, TKPP prices in Europe started to climb.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 was a challenging period for the Tetrapotassium Pyrophosphate (TKPP) market in the US region with November witnessing a downtrend during this timeframe.
The fluctuations in raw materials Potassium chloride and Phosphoric acid overseas have also affected the price trend of the product in the global market. The raw material prices witnessed a significant decline during November which resulted in eased production costs of TKPP during this timeframe. Moreover, the demand from the downstream surfactant industry in the domestic market remained steady and some producers adjusted their prices downward to align with the softer international sentiment. The end-user market of surfactants as buffering agents, dispersion agents, and protein modification further showcased a full trading atmosphere in November.
Furthermore, it was noted that the consumer market's demand outlook was slowing down because most purchases were made out of necessity. Additionally, the preliminary estimate from the Bureau of Economic Analysis (BEA) indicates that the GDP of the United States increased at an annualized pace of 4.9 percent in the third quarter. Aside from this, consumer confidence in the United States increased in November for the first time in four months.
APAC
The fourth quarter of 2023 was a challenging period for the Tetrapotassium Pyrophosphate (TKPP) market in the APAC region. The market witnessed a declining trend throughout the quarter that impacted prices and market dynamics. Firstly, the demand for TKPP remained low, both domestically and internationally. This was mainly due to subdued demand from the domestic market and limited international consumption. Despite stable supply, prices were primarily driven by demand dynamics. Simultaneously, Tetra potassium Pyrophosphate demand was muted throughout this period, especially from end-user areas like the cleaning industry and detergents. The primary raw materials, phosphoric acid and potassium chloride saw a downward trend in production, which further reduced the product's manufacturing costs. The Chinese economy has been struggling, and while government policies have attempted to inject optimism, they have had a limited impact on the TKPP market. Looking at the price trends, TKPP prices in China decreased by 2.4% in November 2023 compared to the previous month. Overall, the market conditions remained challenging throughout the fourth quarter, with low demand and a bearish trend. The quarter ended with the latest price of Tetrapotassium Pyrophosphate (TKPP) FOB Shanghai in China at USD 1550/MT.
Europe
In the fourth quarter, the Tetrapotassium Pyrophosphate (TKPP) market in Europe witnessed mixed market sentiments compiled with fluctuating production costs and demand dynamics from the downstream surfactant market. The price trend of the product in the international market has also been impacted by changes in the price of the raw materials, phosphoric acid and potassium chloride, in foreign markets. Since November saw a sharp drop in the price of raw materials, TKPP's manufacturing expenses were lowered during this period. Furthermore, the domestic market's downstream surfactant industry continued to see stable demand, and several companies lowered their pricing to reflect the weaker global outlook. In November, the end-user market for surfactants as protein modification, dispersion, and buffering agents further demonstrated a fully functional trading environment. Due mainly to the weak economic climate, the downstream surfactant industry's sluggish demand over the winter has been observed in the European market. This cost pressure has been plaguing manufacturers since December because of the lackluster demand in the home market.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the Tetrapotassium Pyrophosphate (TKPP) market in the USA maintained a state of stability. Concurrently, demand from key sectors such as the electrical and automotive industries remained relatively stagnant, thus preventing any significant market fluctuations. Prices remained steady throughout the quarter as cautious buyers and local manufacturers closely adhered to established price ranges. Several factors influenced the market dynamics. Inventory levels and the overall supply situation played a pivotal role in shaping market conditions. Moreover, macroeconomic factors, including interest rates, had a significant impact. The automotive sector, which heavily relies on TKPP for electric vehicle production, exhibited steady demand. However, this demand was constrained by considerations related to interest rates. In July, there was a notable price increase driven by factors such as rising demand, reduced inventory levels, and a weaker US dollar. The renewable energy and automotive industries were instrumental in fuelling this price surge. However, by the end of July, prices experienced a decline as demand waned and local inventory levels increased. The month of August witnessed a price decrease, primarily due to the strengthening of the US dollar and the global inflation pressures. Challenges in China's construction sector also had an impact, and additional factors, such as the Inflation Reduction Act, played a role in limiting demand. Falling feedstock prices in the US market were the result of decreased demand and global economic conditions, alongside considerations related to interest rates and housing starts. Stability was expected to persist in the near term, but certain downstream industries engaged in stockpiling to ensure a secure supply.
APAC
In the third quarter of 2023, Asia's Tetrapotassium Pyrophosphate (TKPP) market faced a challenging scenario with a bearish price trend. In the Chinese market, the price of TKPP decreased by approximately 5% during this period. Several factors contributed to this downward trend. High product inventory levels in the region were a significant concern, mainly due to low demand for TKPP in the overseas market. This surplus of products weighed heavily on prices. In addition, raw material inventories saw an increase, further pressuring TKPP prices. Japan, one of the key players in this market, witnessed a decline in raw material prices originating from the United States, which was attributed to increased production from foreign countries such as Australia and Indonesia. Declining coal and electricity costs in Japan added to the sense of pessimism in the market. The downstream consumption of TKPP remained stagnant, resulting in an oversupply of the product. Competition from the electric vehicle industry within the automotive sector also played a role in shaping market dynamics. Furthermore, the US Federal Reserve's interest rate hike influenced a cautious approach from both domestic and foreign buyers. While there was potential for growth in the Japanese TKPP market, driven by increasing demand in the automotive and battery sectors, the overall global economic conditions remained weak, particularly in the US and Eurozone. This weakness in the global economic landscape impacted the global import demand for TKPP. In light of these factors, the price of TKPP in the Chinese spot market continued to decline due to reduced demand in the automotive industry. The TKPP market in Asia faced significant challenges in the third quarter, reflecting the complex interplay of global economic conditions, supply-demand dynamics, and competition within the industry.
Europe
In the third quarter of 2023, the German TKPP market remained relatively stable, marked by consistent inventory levels and somewhat sluggish demand from key downstream sectors, notably the electrical and automotive industries. Despite the steady sales of electric vehicles, the automotive sector experienced a dip in demand. Conversely, the renewable energy sector showed signs of life, leading to a minor upturn in manufacturing and infrastructure projects. This upswing in feedstock demand had a marginal impact on prices. Buyers, however, approached the market cautiously due to concerns over rising interest rates. The supply of feedstock remained moderate throughout the quarter, with local mills operating consistently, and demand from the electrical sector played a crucial role in maintaining price stability. Unfortunately, the automotive and construction sectors did not exhibit significant growth in demand, which somewhat constrained price dynamics. On a global scale, factors such as interest rate hikes, weak demand, and fierce competition in the automotive industry further influenced the market's overall performance. Government policies had a notable impact on the market. Infrastructure and energy-related upgrades were a focus, and many buyers adopted a wait-and-see approach. The German government's stimulus package, specifically designed to support the construction and housing sectors affected by high interest rates and increased costs, had a significant influence on market dynamics. In summary, the German TKPP market displayed a degree of stability during the third quarter of 2023, with a combination of domestic and global factors shaping price trends and market conditions.
