For the Quarter Ending September 2025
North America
• In United States, the Sodium Hypophosphite Price Index fell quarter-over-quarter in Q3 2025, driven by weakening demand and competitive imports.
• Production costs for Sodium Hypophosphite rose in Q3 2025, influenced by a 3.0% CPI increase in September and 2.6% PPI increase in August.
• The demand outlook for Sodium Hypophosphite was slightly bearish, with industrial production increasing only 0.1% in September 2025.
• Despite robust 5.42% retail sales growth in September 2025, overall chemical demand weakened, and new orders declined.
• Upstream phosphorus input costs rose in Q3 2025; caustic soda feedstock costs softened in North America.
• Chemical manufacturers actively destocked in Q3 2025; yellow phosphorus inventories remained elevated.
• Oversupply from Asian imports in Q3 2025 pressured domestic yellow phosphorus prices downward.
• Industrial electricity costs strengthened in August 2025, while a 4.3% unemployment rate supported overall economic health.
Why did the price of Sodium Hypophosphite change in September 2025 in North America?
• Weakening chemical demand and declining new orders in Q3 2025 exerted downward price pressure.
• Competitive Asian imports, especially for yellow phosphorus, contributed to price declines.
• Rising production costs from a 3.0% CPI increase were largely offset by demand and import pressures.
APAC
• In China, the Sodium Hypophosphite Price Index fell quarter-over-quarter in Q3 2025, influenced by weak industrial demand.
• The Sodium Hypophosphite Price Forecast suggests continued downward pressure due to persistent broader chemical overcapacity.
• Sodium Hypophosphite production costs declined in Q3 2025, as caustic soda feedstock costs decreased.
• Industrial production rose 6.5% in September 2025, offering some demand support despite a contracting Manufacturing Index.
• Consumer Price Index (CPI) declined 0.3% year-over-year in September 2025, reflecting weak consumer demand.
• Producer Price Index (PPI) fell 2.3% year-over-year in September 2025, indicating weak industrial demand.
• Retail sales grew 3.0% year-over-year in September 2025, providing indirect support for end-product demand.
• Electronic information manufacturing and automotive sectors experienced steady to strong growth in Q3 2025.
Why did the price of Sodium Hypophosphite change in September 2025 in APAC?
• Weak consumer demand, with CPI declining 0.3% in September 2025, pressured Sodium Hypophosphite prices.
• Industrial demand was soft; the Manufacturing Index contracted and PPI fell 2.3% in September 2025.
• Declining caustic soda feedstock costs in Q3 2025 contributed to lower production costs for Sodium Hypophosphite.
Europe
• In Germany, the Sodium Hypophosphite Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting manufacturing activity.
• Sodium Hypophosphite production costs trended lower in September 2025 due to a -1.7% year-over-year decline in producer prices.
• Demand for Sodium Hypophosphite faced headwinds as the Manufacturing Index was contracting in Q3 2025, signaling industrial slowdown.
• Industrial production declined by 1.0% year-over-year in September 2025, contributing to a bearish Sodium Hypophosphite demand outlook.
• General inflation, with CPI up 2.4% year-over-year in September 2025, impacted operational costs for Sodium Hypophosphite producers.
• Retail sales increased modestly by 0.2% year-over-year in September 2025, offering slight indirect support to end-product demand.
• German manufacturing export sales experienced reductions in August and September 2025, weighing on overall economic growth.
• The Sodium Hypophosphite price forecast remains subdued given persistent demand weakness and declining new manufacturing orders.
Why did the price of Sodium Hypophosphite change in September 2025 in Europe?
• Contracting Manufacturing Index in Q3 2025 reduced industrial demand for Sodium Hypophosphite.
• Producer prices declined 1.7% year-over-year in September 2025, lowering Sodium Hypophosphite production costs.
• Reduced German manufacturing export sales in Q3 2025 further dampened overall Sodium Hypophosphite demand.
