For the Quarter Ending December 2022
North America
The Phosphonate market in the North American market has fluctuated within rangebound during the first half of the quarter. That is further coupled with the reduced operations at the manufacturing facilities impacting the demand in the domestic market. Although to sustain the netbacks efficiently, producers adjusted the operating rates in the domestic market. In addition, the demand has dropped in the latter half, further coupled with a blizzard storm by the quarter end, enforcing a negative outlook for Phosphonate in upcoming terms. Although, the cost support from the feedstock Yellow Phosphorus has staggered on lower levels, assisting in depressurizing the overall market scenario to a certain extent. Therefore, the DDP USGC discussion for Phosphonate-ATMP was assessed at USD 1564 per tonne during the quarter ending December 2022.
Asia Pacific
Overall, the Phosphonate market sentiments in the APAC region were mixed during the fourth quarter of 2022. For the majority period, the Phosphonate market was dictated by the cost support from the Yellow Phosphorus market. The availability of sufficient feedstock has proportionally impacted the supply outlook of Phosphonate in the Chinese domestic market. At the same time, the demand outlook has remained sluggish amidst the strict COVID norms implemented by the Chinese authorities, although at the start of the quarter, the impact of energy rationing was observed. In contrast, the demand in the prominent Southeast Asian markets has also dropped in November amidst the peak festive season. As a ripple effect, the FOB Shanghai discussions for Phosphonate-ATMP were assessed at USD 1225 per tonne in December 2022.
Europe
The Phosphonate in the European markets has witnessed mixed sentiments during the fourth quarter of 2022. The market obtained a substantial gain in October, and the domestic outlook has sustained adequate recovery against the losses that occurred during the summer break. Although the gains were short-lived amidst the rising inflation and interest rates, consumer sentiments are more conservative than anticipated. At the same time, the insufficient import of Yellow Phosphorus has pressurized the supply outlook considerably. The stance of the European Union over the Russian energy supplies has levied a considerable impact on the operating cost of manufacturing. In response, several producers and downstream players adjusted the operating rates to sustain the supply-demand dynamics of Phosphonate in the volatile environment across the region. Although, the offers attained slight stability by the second half of the quarter. As a ripple effect, the FD Hamburg discussions for Phosphonate-ATMP were assessed at USD 1534 per tonne.
For the Quarter Ending September 2022
North America
Overall the Phosohonate market in the North American region is pressurized in terms of the tightened supply outlook. This development is majorly attributed to the limited imports from overseas markets. The limited operation in China amidst the power rationing followed by the COVID curbs and new energy reforms levied a significant impact across the value chain. In addition, the demand outlook has remained stagnant as the market participants were consistently restocking to avoid any hurricane-related disruptions across the value chain. As a ripple effect, the DDP USGC discussion for Phosphonate ATMP was assessed at USD 1412 per tonne during September 2022.
Asia Pacific
In the third quarter of 2022, the Phosphonate market in the Asia Pacific region witnessed mixed sentiments amidst the uncertain supply-demand dynamics. The curtailed operational rates at the manufacturing facilities have pressurized the supply outlook in the Chinese domestic market. In addition, the cost-support from feedstock has also soared. The Southeast Asian markets witnessed a dull demand amidst the ongoing monsoon season. However, inquiries from the western markets have remained stagnant or improved in the latter half of the quarter. As a ripple effect, the FOB Shanghai discussions for Phosphonate ATMP were assessed at USD 1300 per tonne during the quarter ending September 2022.
Europe
In the third quarter of 2022, the European Phosphonate market witnessed bearish sentiments. This development is majorly attributed to the silent market trend for the majority term in the quarter. This market trend is attributed to the long holidays in the European markets. In addition, the market witnessed a slight pace in September. When the market rebounded, the recovery remained limited amidst the rising inflation and depreciating value of the EUR against the USD. As a ripple effect, the DDP Antwerp discussions were assessed at USD 1540 per tonne for Phosphonate ATMP in September.
Prices of Phosphonate witnessed a surge in quarter 2 of 2022 due to disrupted trading activity from China to the US amid the US-China trade war. Transportation from China was halted in April amid port congestion at several container terminals. US market players suffered from inadequate availability of inventories due to high raw material costs and high inflation rate throughout the second Quarter of 2022. Traders of the USA are occupied with finding new opportunities from different producing countries of Phosphonate to satisfy demand and attain marginal profits in the local market. Conclusively, a shortage of inventories and crippled supplies resulted in a surge of Phosphonate by nearly 2% in the North American market. Moreover, high energy values caused input costs to burden the enterprises for Phosphonate in the region.
In the Asia Pacific region, prices of Phosphonate showed an upward trend during Quarter 2 of 2022 for both ATMP and DTPMP grades. The inclination seen in the Phosphonate prices in April and June due to the high inflation rate amid War and disruption in supplies from Chinese ports throughout this quarter. Demand for the product from the downstream agriculture and water treatment industry witnessed robust coupled with inadequate availability of inventories in the APAC market in April. Besides, bearish market sentiments for Phosphonate were seen in the Indian market in June, backed by the reduction in customs duty and depreciation in Indian currency against the US dollar. Thus, the Phosphonate ATMP was quoted at INR 174500/MT, and DTPMP was assessed at INR 215200/MT Ex-Vadodara (India) in June.
Phosphonate Prices in the European market showcased an upward trend with a surge of 2% during Quarter 2 of 2022 due to a high inflation rate amid War in the European region. The ongoing conflict between Russia-Ukraine created upward pressure on the commodities in the European regional market because of a shortage of inventory, which hampered production activities. Meanwhile, Phosphonate is majorly imported by China in the European market, so the halted production in China under strict covid lockdown restrictions also conclusively impacted the prices of Phosphonate throughout this quarter. Inclination Input costs for the product seen backed by the high energy values caused the upward in the Phosphonate prices in the second quarter of 2022.
