For the Quarter Ending June 2022
North America
The North American region is the largest producer of phosphorus trichloride, with most of the production concentrated in the USA. Its high demand growth saw a price escalation during the second quarter. Market segments for phosphorus trichloride include organophosphorus pesticides, chelating agents, flame retardants, and others. To gain an edge over others and serve a broader market, phosphorus trichloride manufacturers focus on marketing strategies such as acquisitions and innovation. The prices of upstream feedstock Yellow Phosphorus and Liquid Chlorine escalated, putting cost pressure on the product in the regional market. The inventories were observed to fall in the regional market, with fewer products stockpiled by the traders.
Asia
The market price of Phosphorus Trichloride continued to increase in the second quarter. The operating burden of yellow phosphorus production enterprises is at a substantial level. Manufacturers often send out pre-orders, space is tight, and market transaction prices are even close to premium prices. Downstream companies are waiting for more, and most are digesting initial inventory. In terms of phosphate rock, this week, the domestic phosphate rock market increased. Currently, the overall stock at the phosphate rock yard is low, and the source of goods circulating in the market is expected. There was a quarterly escalation of 1% in the second quarter of 2022 as per Chem Analyst pricing team data.
Europe
The prices of Phosphorus Trichloride surged in the European market during the second quarter of 2022. Various developments are enhancing the growth of phosphorus trichloride, which is extensively used as a plasticizer in plastic products. To increase agricultural yield, governments in multiple countries provide subsidies and discounts on agrochemicals such as fertilizers and pesticides in response to the growing population and demand for food. In addition to producing herbicides, pesticides, glyphosate, and organophosphate insecticides, phosphorus trichloride plays an essential role in the market demand for agrochemicals. This led to the fall of inventories and fewer products stockpiled with the traders.
For the Quarter Ending March 2022
North America
North America saw a shrinking market of Phosphorous Trichloride by the end of the first quarter of 2022. Although USA saw a sudden spike in the prices in the month of February which went as high up-to USD 3000/ton and fell back towards the end of the quarter. Deterred demand from downstream plasticizers, catalyst, and gasoline additives and increasing supply from production units caused a downfall of prices even though the feedstock yellow phosphorous prices were rising, globally. USA contributed a share of 6.74% in exporting Phosphorous Trichloride globally and the production rate was observed to be increasing at a moderate rate, affecting the prices.
Asia Pacific
In Asia, the price of Phosphorous Trichloride deescalated in the first quarter of 2022 in India which decreased down to 29.4% in the beginning of the quarter when compared with the last month of previous quarter. Q1 saw a reduction of 26.5% in price as compared to the last quarter of 2021. Asia being the major exporter of Phosphorous Trichloride saw a decrementing trend in the price. Saudi Arabia also followed the same trend where downward trajectory deterred the market sentiments by the end of the quarter. Feedstock White Phosphorus market was observed to be deteriorating, and the increment in the production rates resulted in stockpiling of inventories in the regional market. Downstream Fertilizer industries were heard to be operating moderately with consumption of existing inventories and low demand for the new ones.
Europe
The price of Phosphorous Trichloride went down in the first quarter of 2022 with sufficient product availability and deterred market sentiments from the downstream end. With Germany being the major importer of Phosphorous the country experienced a downward trend in the price despite of increasing freight charges due to Russia-Ukraine war. Decreasing demand from downstream dyestuffs, flame retardants and agricultural market and increasing inventories in the production enterprises have caused downfall in the prices of Phosphorous Trichloride and its by-products. This inward shift in the prices have caused European market to experience a downfall in Q1 of 2022. However, offers for Phosphorous Trichloride marginally slowed by the end of the quarter as the supply eased gradually following the normalcy in operating rates of plants.
For the Quarter Ending December 2021
North America
Phosphorous Trichloride market in North America remained highly volatile throughput the quarter owing the global shortage of Yellow Phosphorous due to the energy crises in China. However, offers for Phosphorous Trichloride marginally slowed by the end of the quarter as the supply eased gradually following the normalcy in operating rates of plants. Demand for Phosphorous Trichloride remained mixed as some segments like surfactants and germicides witnessed favourable offtakes while the consumption from rubber and plasticizer segments dived.
Asia
Market sentiments of Phosphorous Trichloride remained mixed in the regional market in Q4 2021. In early Q4, soaring raw material cost affected the price trend of Phosphorus Trichloride across regional market. Production halts in China, due to dual energy policy and other production related issues hit the overall output of raw material Yellow Phosphorus for global market. It was heard that, China reduced its yellow phosphorus output by more than 80% which induced critical shortage of raw materials in regional market. After witnessing an exponential rise for several weeks, Phosphorus Trichloride prices reached normalcy in Indian market. Traders quoted far more cheaper prices than previous weeks, after arrival of scheduled cargoes from China. Phosphorous Trichloride prices were assessed at USD 3025 per MT in India in December.
Europe
As Phosphorous Trichloride is viably consumed in the agriculture sector, demand for the product in the European market remained firm from the agrochemicals sector. During this quarter, Europe witnessed extended energy crises which led to the fall in operating rates of various plants. The energy crises in China led to the shortage of the product in Asia and Europe in early Q4 which continued to affect prices of Yellow Phosphorous and its derivatives for a prolong period. Phosphorous Trichloride prices fluctuated in a firm range across the quarter.
For the Quarter Ending September 2021
North America
In the North American region, the Phosphorous Trichloride prices in the US showed strength while the demand showcased an upward trajectory during the 3rd quarter of 2021. Key players indicated towards acute tightness in the raw material Yellow Phosphorous supply as the factor restraining local production. As global availability of raw materials was substantially reduced, manufacturers were heard cautiously monitoring the cost developments and reviewing its regional pricing accordingly.
Asia
The Asian market witnessed a significant rise in the prices of Phosphorus Trichloride during the third quarter of 2021. In India, discussions of Phosphorous Trichloride remained firm due to extended supply issues from the overseas market and prevalent demand patterns. Besides, consistent rise in prices of feedstock Phosphorus in the Chinese market also supported this consistent price surge. Following an uptrend, Phosphorous Trichloride prices escalated from USD 1251/MT to USD 1952/MT from July to September. Key Asian traders were seen struggling with the availability of Phosphorous since a long time. In line with widened demand and supply gap, several Asian players were heard positively adjusting the prices to offsetting the higher cost of yellow phosphorous. Tight supply situation was further exacerbated by Chinese authorities restricting the high energy consuming production of yellow phosphorous in several provinces starting September.
Europe
The overall market outlook of Phosphorus Trichloride demonstrated an upward trajectory across the European region in Q3 of 2021. As regards to the raw material supply and demand situation, the price of Phosphorous Trichloride rose significantly during Q3, and transactions remain strong. Demand from the downstream fertilizers sector remained strong. Lack of Phosphorous supply from China continued to deter production levels in key European countries. Average selling prices of several downstream fertilizers remained at their historic high due to escalating raw material costs.
For the Quarter Ending June 2021
North America
Phosphorous Trichloride market showcased sturdiness during this quarter across North America region. The demand remained consistent for Phosphorous Trichloride in Q2 2021 in USA, as the offtakes was ample from the downstream sectors like pharma, pesticides and additive segments. Therefore, a significant rise in price of Phosphorous Trichloride was observed in USA, majorly driven my agrochemical segment of the country. In addition, critical shortage of feedstock Chlorine in the country, also exacerbated the overall price hike of the product during this timeframe.
Asia
Phosphorous Trichloride market remained sturdy during this quarter in Asia, supported by firm offtakes from the downstream sectors. In China, price of Phosphorous Trichloride remained firm throughout the quarter, supported by consistent offtakes from the domestic agriculture and pharmaceutical sector. While in India, prices declined in May, as the offtakes reduced from the downstream manufacturers, and many manufacturers faced shortage of labour force, under the pandemic restrictions in the country. Therefore, prices of Phosphorous Trichloride were reduced from USD 1257/MT to USD 1105/MT in India during the month of May. However, prices rebounded effectively in June, with decline in pandemic cases in the country.
Europe
European Phosphorous Trichloridemarket witnessed firm demand from the agrochemicals sector. During this quarter, European agrochemicals sector was flourishing, which induced the demand for several agrochemicals including Phosphorous Trichloride across the region. In addition, revival in economic activities across major countries after pandemic devastation in the previous quarter boosting the demand for Phosphorous Trichloride from oil additive segment.
For the Quarter Ending March 2021
North America
Phosphorus Trichloride demand from the agrochemical sector of North America remained low during this quarter. After severe winter weather was across several parts of North America, agricultural activity across these areas remained halted and demand for agrochemicals remained low. However, despite of low demand, imports remained modest but lower than the prior quarter. Critical weather conditions across the US gulf coast didn’t much affect the availability of Phosphorus Trichloride and no such shortage was observed.
Asia
In the Asian market, demand for Phosphorus Trichloride remained low in several downstream segments. However, the export demand was higher than expected in major Asian countries like India and China. In the Indian market, regardless of the upcoming crop season, abundant availability reduced the prices of Phosphorus Trichloride in the country. In addition, the presence of alternative pesticide and herbicides also cut the demand and reduced exports. In the Indian markets, price of Phosphorus Trichloride dwindled by more than 9% within Q1 due to low demand from the domestic and international market, to settle at USD 882/MT during March.
Europe
Despite of high demand for several agrochemicals from the agriculture sector, offtakes of Phosphorus Trichloride remained poor during this quarter across the region. After the arrival of spring season, domestic demand for fertilizers skyrocketed in a very short span of time but the demand for Phosphorus Trichloride remained low due to the availability of other alternatives. However, demand showed some improvement during the end of Q1 and is further anticipated to improve in the forthcoming months.
Quarter ending result for December 2020
Asia
During Q4 2020, the prices of Phosphorous Trichloridereduced significantly due to its subdued demand form the agrochemical sector. Consequently, in India its prices reduced from 1050.07 USD/tonne (October 2020) to 992.57 USD/tonne (December 2020) due to tumbling demand from the Indian agrochemical sector. The reduction in prices was also driven by lower export demand from several countries under fear of another lockdown from the buzz of new Coronavirus.
North America
Several natural calamities like multiple hurricanes and droughts impacted the production of Phosphorus Trichloride in North American. Hurricanes induced force majeure on several plants across US Gulf caused an adverse impact upon the mining activities at Cote Blanche mines. These conditions led and t led to the shortage of minerals across the region and thus slumped the availability of Phosphorus Trichloride.
