Values of Tri Calcium Phosphate are Falling as Demand in India Decreases

According to ChemAnalyst, on the back of dropping Phosphoric Acid (feed) values, the price trend of Tri Calcium Phosphate in India's domestic market is continually following a downward trajectory. Because India purchases most of its goods from China, the country's periodic lockdowns have had a considerably bigger impact on global supply chains than the conflict in Ukraine. Given that China is the world's largest exporter of Tri Calcium Phosphate, the outbreak of infections impeded the product's delivery offshore, resulting in increased freight costs as well as supply and port bottlenecks. 

China's strong limitations on Covid-19 transmissions have largely damaged India's domestic businesses by restricting imports of key food additives and active pharmaceutical ingredients. China's "irrational" zero-Covid policy has imposed stringent limitations in major cities i.e., Shanghai and Beijing, causing supplier delivery times to worsen and new export orders to fall. The on-and-off lockdowns in the country's major provinces have produced huge supply-chain disruptions, which have impacted India more directly due to the country's large import dependence on China in various sectors including F&B, pharmaceuticals, and others.

"In China, supply-chain disruptions are expected to last for the rest of the year." In such a scenario, a further slowdown in Chinese imports could have a negative impact on domestic manufacturing." Industry insiders in India say so. 

Indian manufacturers are attempting to retain sufficient inventories to survive any possible short-term supply difficulties. However, as demand in the domestic market continues to decline, the value of various items has decreased. If China fails to handle the present rise of cases, the lockdowns could expand throughout the country, leaving India exposed to supply disruptions that are already protracted.

As per our sources, key raw materials will be in short of supply in the Indian factories and warehouses, causing production to be disrupted, particularly in the food and beverage and pharmaceutical industries. Consumption of food and beverages is expected to become one of the most important drivers of future economic growth in India and around the world. Given the foregoing market scenario, Tri Calcium Phosphate prices are likely to stabilize in tandem with increased demand from end-user industries.