The US Phosphonate Prices Show Bearish Trend, Market Likely to be Optimistic in H2 of 2023
- 23-Jun-2023 11:18 AM
- Journalist: Motoki Sasaki
Texas (USA): The Phosphonate market in the USA observed a downturn in June owing to weaker consumer demand from the downstream water treatment enterprises. The Phosphonate's imports have slowed since the start of this year; the import value of Phosphonate in January 2023 was 56.6 MT which dropped 44.7 MT in March 2023, a drop of 11.9 MT. Further, in April, the import volume slipped to 41.6 MT. The primary reason for this downhill trajectory can be attributed to Washington's non-stop efforts to curtail economic ties with China. With this, bilateral trade relations were compromised for geopolitical benefits.
According to the data quoted from China's General Administration of Customs (GACC), according to which bilateral trade between the two nations in the first five months of 2023 totaled 274.6 billion dollars, marking a 5.5% decrease from 2022.
Last month, in its non-stop pursuit to curb inflation, the US Federal Reserve raised its key interest rate by a quarter-point, reaching a level not seen in over 16 years. Amidst such rigorous implementations, the business sentiments in the region were severely hampered as the market players were reluctant to take participation.
Additionally, the consumer's sentiments exhibited a strong wait-and-see attitude. The production rates of Phosphonate were also compromised in this period, as the manufacturing PMI showcased contractions month-on-month. As per the Analysts, China's exports to the United States will continue to face these challenges soon.
On the east side of the globe, the Asian markets have dominated the Phosphonate market, especially China and India. However, in June, the prices of Phosphonate dropped as the inquiries declined amid recessionary fears across various consumer markets.
In the first week of June, the offered quotations of Phosphonate ATMP Ex-Vadodara stood at USD 1626/MT, but in the second week, the prices dropped by 3.3% and settled at USD 1572./MT and, amid balanced market fundamentals, remained unchanged in the week ending on 16th June. Similarly, per month-on-month pricing data in China, the quotations plunged by a considerable margin of nearly 12%, and the Phosphonate ATMP FOB Shanghai market discussions dropped to USD 1135/MT in May from USD 1302/MT in April.
According to the ChemAnalyst database, the Phosphonate market in the USA is presumed to showcase considerable growth as the summer season approaches the Northern Hemisphere. The demand for Phosphonate as a water treatment agent in the industries is anticipated to inch upward, and increased offtakes of the product are foreseen.