Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) prices increased across Asia and the United States during the first half of August 2025, due to high demand from water treatment and oilfield sectors. Market sentiment remained firm across key regions.
In China, THPS demand strengthened notably, driven by extreme heat and flooding that intensified microbial growth and pollutant loads in water systems. Municipal and industrial facilities increased dosing rates, lifting THPS consumption.
THPS demand in the oil and gas sector also contributed to the uptick, with extraction output rising 3% month-on-month, prompting higher demand for biocidal applications. Export activity improved slightly as overseas buyers improved as the demand in the downstream segments surged. However, port congestion in eastern China, caused by severe weather, continued to pose logistical challenges.
Feedstock prices for formaldehyde and phosphorus trichloride remained stable, keeping production costs for THPS moderate, and allowing producers to maintain pricing flexibility.
Meanwhile textile sector demand weakened due to subdued orders, tariff related issues and paints and coatings remained under pressure due to slow construction activity.
In India, THPS demand rose steadily, led by robust water treatment activity. Prolonged heatwaves and flooding across several states increased microbial contamination, prompting higher biocide usage in municipal and industrial systems.
Demand for THPS in the textile sector showed mixed signals. Apparel exports posted an 8.91% year-on-year gain in Q1 FY26, lifting overall textile and apparel shipments by 3.37%. However, core textile exports dipped marginally, limiting broader feed-through demand for THPS.
The paints and coatings segment remained in a seasonal lull, with monsoon-related disruptions delaying construction projects. Buyers continued to adopt cautious procurement strategies, favoring short-term purchases.
In the United States, THPS consumption rose sharply, driven by water treatment needs following Tropical Storm Chantal, which brought heavy rainfall to central North Carolina. Municipal systems responded with increased biocide dosing.
THPS demand in the other downstream such as oil and gas sector also recorded stronger demand, supported by rising drilling activity. Baker Hughes reported that the North American rig count rose from 707 to 724 in recent weeks, with U.S. rigs increasing from 539 to 542.
The paints and coatings sector showed recovery last month, lifted by a 5.2% rise in housing starts. Multi-family starts jumped 11.6%, and single-family starts grew 2.8%. Permits edged up 0.5%, but high 6.58% mortgage rates and economic uncertainty slowed residential investment.
As per the ChemAnalyst, THPS Prices are anticipated to remain high due to strong seasonal demand and early procurement ahead of China’s October holidays. Inventory drawdowns may accelerate as downstream users prepare for Q4 operations, while water treatment demand is expected to offer continued support.
