For the Quarter Ending March 2025
North America
Throughout Q1 2025, the Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) market in North America witnessed a continuous decline, weighed down by weak downstream demand, ample inventory, and sustained inflows of low-cost imports from Asia. Prices initially slipped as U.S. buyers responded to softer export rates from China, where oversupply and tepid global demand undercut pricing. Limited bulk procurement from sectors such as oil and gas and water treatment further dampened market momentum.
Construction-related consumption remained constrained due to high interest rates and a subdued project pipeline, keeping THPS usage in coatings and infrastructure applications weak. Shipping costs from Asia to the U.S. fell sharply across the quarter, improving landed cost competitiveness for imports and maintaining downward price pressure.
Despite a modest recovery in domestic manufacturing, demand stayed restrained, with buyers favoring spot-based purchases over forward contracts. Inventory buildup and minimal end-user pull reinforced the bearish tone, while operational stability across Asian suppliers ensured continuous availability in the U.S. market. THPS prices in the USA closed the quarter at USD 1,150/MT CFR Los Angeles.
APAC
Throughout Q1 2025, the THPS market in the Asia-Pacific region witnessed a continuous decline, driven by oversupply, sluggish downstream demand, and limited feedstock cost support. In January, manufacturers faced reduced orders after bulk December purchases, while demand from downstream oil drilling, water treatment, and textiles remained weak amid soft international trade. February saw an increased supply post-Lunar New Year, as production resumed across major plants. However, slow export growth and tariff concerns, particularly from the U.S., kept procurement restrained. By March, high inventories led to discount-driven selling as downstream sectors, especially water treatment and coatings—continued to operate cautiously. Export backlogs at Shanghai Port caused by fog and berth congestion added logistical strain, though had minimal impact due to subdued shipments. Weak offtake from the Middle East during Ramadan and stagnant demand from India added further downside. Despite some feedstock cost fluctuations, overall production expenses remained moderate. Buyers largely adopted a spot-based strategy, keeping inventory lean amid bearish sentiment. Q1. THPS prices in China closed the quarter at USD 1,015/MT FOB Shanghai.
Europe
Throughout Q1 2025, the THPS market in Europe, particularly in Germany, experienced a persistent downtrend, driven by oversupply and limited downstream demand. The market began the quarter on a weak footing, with subdued consumption across water treatment and coatings. Structural challenges in the European chemical sector—such as high energy costs, regulatory burdens, and shrinking industrial output—further constrained procurement. Construction sector activity remained soft, with declining new project starts and delays in ongoing developments curbing demand for THPS in coating and infrastructure applications. Meanwhile, the textile segment offered no significant recovery, with downstream buyers maintaining cautious inventory strategies amid uncertain market sentiment. Imports from Asia remained steady, supported by uninterrupted operations in key manufacturing hubs, adding to regional oversupply and intensifying price competition. Despite maintenance at certain domestic facilities, inventory levels stayed elevated, and overall production rates remained conservative. Buyers across Europe largely adhered to short-term purchasing, with little appetite for forward bookings. THPS prices in Europe closed the quarter under continued pressure.
South America
Throughout Q1 2025, the THPS market in South America witnessed a continuous decline, weighed down by weak downstream demand, ample imports, and subdued cost support. In January, prices dropped as Brazilian buyers took advantage of low-cost shipments from China, where global oversupply and sluggish consumption reduced export values. February saw further declines amid ongoing supply pressure and limited infrastructure investment, while softer post-holiday international trade and falling freight rates dampened import costs. Despite some recovery in Brazil’s industrial output, cautious procurement from sectors such as water treatment, oil & gas, and coatings kept consumption muted. In March, prices slipped again due to sluggish end-use demand and continued competition from Asian exporters. Shipping costs dropped further, and while some feedstock prices like phosphorus trichloride rose, declining formaldehyde costs offset broader production expenses. Seasonal trade lulls, inflationary pressure, and labor shortages contributed to soft market sentiment. Buyers largely avoided bulk purchases, maintaining a conservative procurement approach. Q1. THPS prices in Brazil closed the quarter at USD 1,180/MT CFR Santos.
For the Quarter Ending December 2024
North America
The North American THPS (Tetrakis Hydroxymethyl Phosphonium Sulfate) market experienced mixed trends in Q4 2024, with prices declining in October and November before recovering in December. In October, prices fell by 2.2%, reflecting weak demand from water treatment, textiles, paints, and coatings sectors, compounded by oversupply and reduced operating rates in exporting nations. Lower import prices, supported by reduced freight costs, added downward pressure on pricing.
November saw a sharper decline in the domestic market of USA. Subdued downstream demand and elevated inventory levels weighed heavily on the market. Water treatment and textile industries faced low procurement activity, while paints and coatings demand remained muted due to slow construction activity. Weak feedstock support and high imports from Asia further pressured the market.
In December, THPS prices rebounded by 4.5% to USD 1,370/MT CFR Los Angeles, driven by tight supply from China amid pre-Lunar New Year stocking. Strong demand from the oil and gas sector, fueled by record-high domestic oil production, supported the price increase.
APAC
The THPS (Tetrakis Hydroxymethyl Phosphonium Sulfate) market in APAC experienced mixed trends in Q4 2024, with prices declining in October and November before rebounding slightly in December. In October, prices dropped by 2% due to persistent oversupply, subdued demand from water treatment and textile sectors, and weak cost support from feedstock Phosphorus Trichloride. Despite production resuming after maintenance shutdowns, high inventory levels and limited downstream procurement kept the market bearish. November saw a sharper 8.6% decline, as high stock levels and reduced export activity combined with muted downstream demand to keep the market bearish. The construction sector’s ongoing slowdown further reduced demand for paints and coatings, adding pressure to the market. Manufacturers intensified destocking efforts by offering discounts to manage inventories, but the market remained subdued. By December, prices increased 3.6% to USD 1,150/MT FOB Shanghai, supported by robust demand from the oil and gas sector for drilling operations. Rising export volumes and stable domestic manufacturing contributed to the uptick. However, water treatment and textile demand remained limited, keeping the overall market sentiment cautious as the year ended.
Europe
The THPS (Tetrakis Hydroxymethyl Phosphonium Sulfate) market in Germany experienced a mixed performance in Q4 2024, with prices declining in October and November before recovering slightly in December. In October, prices dropped as oversupply and weak downstream demand from water treatment, textiles, and coatings sectors weighed heavily on the market. High inventories and reduced procurement from key industries, coupled with slow construction activity in Germany, contributed to a bearish sentiment. The decline in feedstock costs, particularly Phosphorus Trichloride, further pressured production margins.
In November, the market continued its downward trajectory as sluggish demand persisted across most downstream applications. The paints and coatings sector saw limited consumption due to Germany’s ongoing construction slowdown. High energy costs and reduced export opportunities amplified market challenges, leaving producers focused on destocking and managing excess inventories.
By December, prices stabilized and increased slightly, supported by tighter global supplies from exporting nations like China, where production constraints before the Lunar New Year limited exports. The oil and gas sector provided some demand resilience, particularly for drilling operations, but water treatment and coatings remained subdued.
South America
The THPS market in Brazil experienced mixed trends in Q4 2024, with prices declining in October and November before rising slightly in December. In October, prices dropped due to oversupply, weak downstream demand, and lower feedstock costs. Downstream sectors, including water treatment, textiles, paints, and coatings, exhibited minimal procurement activity, driven only by immediate requirements. High inventories, combined with competitive pricing from Asian exporters and reduced freight rates, kept the market under bearish pressure. Manufacturers struggled to manage inventory levels, with port congestion adding minor delays but failing to offset the broader market weaknesses. In November, prices declined further as weak demand persisted across key sectors. The water treatment industry, operating at reduced capacity, exhibited limited buying momentum, while construction activity slowed due to economic uncertainty. High import volumes from Asian producers exacerbated the oversupply situation, leaving little room for price recovery. By December, THPS prices rose modestly, supported by tight global supplies and robust demand from the oil and gas sector. Record domestic oil production boosted consumption of THPS for drilling operations.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in North America has seen a stable pricing environment. Key factors influencing market prices included steady demand from various sectors, such as oilfield and water treatment plants, alongside consistent manufacturing activities. High import prices from major exporting nations contributed to the price stability.
In the USA, which experienced the most significant price changes, THPS prices remained relatively stable throughout the quarter. Seasonal factors, like the rainy season impacting demand, and the correlation between supply and demand dynamics played a crucial role in maintaining price stability.
The quarter recorded a marginal decrease of 1 percent from the previous quarter i.e., Q2 2024, with no significant price difference between the first and second half of the quarter. The quarter-ending price for THPS in the USA stood at USD 1470/MT CFR Los Angeles basis, reflecting a stable pricing trend in the region. No major disruptions or plant shutdowns were reported during the quarter.
APAC
In Q3 2024, Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) prices in the APAC region experienced a notable decrease, primarily influenced by a combination of factors impacting the market dynamics. The market sentiment was predominantly negative, with prices facing a consistent downward trend. Factors such as reduced demand from key sectors, oversupply situations, and lower procurement activities contributed to the declining prices. The market also witnessed disruptions, with a few plant shutdowns affecting supply levels. China, being a key player in the THPS market, saw the most significant price changes during the quarter. The overall trend in China followed the regional pattern of decreasing prices, reflecting a synchronized market movement. Seasonal fluctuations and correlation in price changes were evident, with a clear downward trajectory observed throughout the quarter. Marking a 1.1% decrease from the same quarter last year indicated a downward trend, with a 3.7% decreased from the previous quarter highlighting stability amid ongoing market pressures. The quarter ended with the latest price of USD 1240/MT FOB Shanghai for THPS in China, marking a decrease from the previous quarter. This price comparison highlights the challenging pricing environment that prevailed in the APAC region during Q3 2024.
Europe
Q3 2024 proved to be a challenging period for THPS pricing in Europe, with market prices witnessing a significant decline. Several key factors contributed to this downward trend, including weak demand from the water treatment industries, which played a pivotal role in the declining market. Instability in raw material costs, particularly feedstock like tetrahydrofuran, failed to offer the necessary cost support, further driving prices downward. Market momentum continued to weaken, with insufficient demand from downstream sectors exacerbating the supply-demand imbalance in Europe. Poor performance in the downstream industries, facing reduced demand, led to a pessimistic market outlook, intensifying pressure on THPS prices in the European market. Germany, in particular, experienced the most substantial price declines, with a significant year-on-year decrease and a notable quarter-on-quarter drop, especially between the first and second halves of the quarter. By the end of Q3, the quarter-ending price in Germany reflected the prevailing bearish sentiment in the market, marking a continuation of the downward pricing trend.
South America
In Q3 2024, the Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) market in South America experienced relative stability in pricing. Several key factors influenced market prices during this period. Strong demand from sectors like oilfield operations and water treatment plants, along with high import prices and ongoing procurement activities, contributed to the stable pricing environment. The market also saw steady growth in trading activities and consistent manufacturing performance, supporting the stable prices. Despite challenges such as disruptions and plant shutdowns, the market maintained its equilibrium. Brazil, with the most significant price changes in the region, witnessed fluctuations but overall stability in THPS prices. The market in Brazil experienced a balanced supply and demand outlook, with moderate price changes. Seasonal factors like the rainy season further influenced demand, while factors like high import prices and domestic consumption levels played a role in price fluctuations. The quarter recorded a slight decrease from the previous quarter but remained stable overall, with the latest quarter-ending price standing at USD 1540/MT CFR Santos in Brazil.
For the Quarter Ending June 2024
North America
In Q2 2024, Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) experienced a marked price increase in the North American region, underpinned by several critical factors. Market dynamics were heavily influenced by robust demand and rising import prices from key exporting regions. The water treatment and paint and coatings sectors saw heightened activity during the summer months, driving significant demand for THPS. Additionally, the automotive industry's recovery further bolstered the paint and coatings demand. Supply chain disruptions, including logistical challenges and port congestion, coupled with elevated freight charges stemming from geopolitical tensions, exacerbated the upward price pressure.
Focusing on the USA, the THPS market exhibited substantial price changes, with the overall trend reflecting a bullish sentiment. Seasonality played a key role, with summer procurement activities driving demand, particularly in the water treatment segment. The price change from the previous quarter was recorded at 3%, while the differential between the first and second half of the quarter was noted at 6%. This consistency in rising prices underscores a positive pricing environment. The USA, experiencing the most significant price fluctuations, recorded a quarter-ending price of USD 1530/MT CFR Los Angeles. The cumulative effect of robust demand, logistical constraints, and production disruptions unequivocally led to a favorable pricing environment for THPS in Q2 2024.
APAC
In Q2 2024, the Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) market in the APAC region experienced a significant upward pricing trend. This quarter saw a marked increase in THPS prices, driven by robust demand across diverse industries including water treatment and paint and coatings. Seasonal factors, particularly heightened household activities and construction during summer, substantially contributed to the price surge. Additionally, rising import costs from exporting nations and elevated energy prices added to production costs, further propelling prices upward. In the backdrop of these dynamics, geopolitical disruptions and port congestions, particularly in critical shipping hubs, exacerbated supply chain challenges, leading to compounded impacts on THPS pricing.
Focusing on China, the country experienced the most pronounced price changes within the region. The overall trend was bullish, underpinned by strong domestic and international demand. Positive market sentiment, spurred by optimistic economic indicators and government initiatives aimed at stabilizing the property market, fueled procurement activities. Seasonality played a pivotal role, with summer-related demand spikes significantly driving prices. Comparing the first and second halves of the quarter, there was a notable 3% increase in prices, reflecting sustained demand growth.
The latest quarter-ending price for THPS FOB Shanghai was recorded at USD 1350/MT. The positive pricing environment was further influenced by plant disruptions including [Plant Shutdown Names] that tightened supply, adding upward pressure on prices. Consequently, the THPS market in the APAC region during Q2 2024 demonstrated a robust and consistently increasing pricing sentiment, signaling a positive outlook for stakeholders.
Europe
During Q2 2024, the pricing environment for Tetrakis Hydroxymethyl Phosphonium Sulfate (THPS) in the European region was influenced by various factors. Overall, the market experienced an upward trend, with some countries seeing price increases while others saw moderate gains. However, the Netherlands market experienced the most significant price changes during this period.
Throughout the quarter, THPS prices in the Netherlands' domestic market saw an upward trend. These increases were driven by several factors, with the summer season playing a significant role. As the country imports THPS, the season led to heightened domestic demand from water utilities. Additionally, the market benefited from robust demand from downstream industries, including water treatment, pulp, and paper. Import prices remained high, further contributing to the upward price trajectory.
The market was influenced by factors such as import prices, production costs, and demand from downstream industries. Compared to the same quarter last year, THPS prices in Q2 2024 showed an increase, reflecting the positive market sentiment and increased procurement activities observed in April and May.
Overall, the pricing landscape for THPS in Europe during Q2 2024 remained favorable, with strong demand and high import prices driving the upward trend.
South America
THPS prices in the Brazilian domestic market maintained their upward trend, driven by consistent demand, high import prices, and positive downstream sentiment. Heightened household activities and increased demand from the water treatment and paint and coating sectors, particularly in the water treatment sector during the summer season, further supported the price increase. The manufacturing and industrial sectors also demonstrated resilience and growth, boosting THPS demand.
Market sentiment remained positive, leading businesses to increase their purchase volumes and inventories in anticipation of continued demand growth. These developments indicated positive economic health, creating a favorable market environment for THPS. However, challenges posed by high freight costs and inventory shortages created pressure on the supply chain. Spot prices of most chemicals surged due to rising freight and container costs, coinciding with a seasonal uptick in demand. The downstream water treatment sector showed continued strong growth, driven by increased consumption both domestically and internationally.
The paint and coating industry also saw improvements, particularly in the construction sector. With the Brazilian Chamber of the Construction Industry projecting a 2.3% growth, expectations for new projects fueled purchases in downstream sectors like paint and coatings. Market sentiment remained cautiously optimistic, supported by strong sales figures indicating sustained demand, though adjustments were ongoing in response to affordability concerns in certain segments.
