For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, the price of Tetra potassium pyrophosphate (TKPP) decreased by 2% compared to the previous quarter. This decline resulted from the availability of previous stocks and weak demand from key sectors like agriculture, which showed cautious purchasing behavior amid market uncertainties.
The production rates remained steady, driven by moderate feedstock Phosphoric Acid availability, despite weak Phosphate Rock supplies. The U.S. market experienced an increase in TKPP imports due to concerns over potential port strikes and upcoming tariff changes, prompting stockpiling by U.S. manufacturers.
Although the agricultural sector showed conservative purchasing activity, the cosmetics sector saw growth, fueled by strong holiday season e-commerce performance and rising demand for premium products. Online sales surged, and mobile shopping played a key role in driving demand. While the overall market faced downward pressure due to supply constraints and weak agricultural demand, the cosmetics sector exhibited resilience, supporting some stability in TKPP prices. The mixed market dynamics resulted in a 2% price decrease during the quarter.
APAC
In the fourth quarter of 2024, Tetra potassium pyrophosphate (TKPP) prices experienced a 1% increase from the previous quarter. This uptick in prices was driven by steady demand across key sectors, particularly agriculture, where TKPP plays a crucial role in pesticide production. The cosmetics sector also contributed to stable demand, with moderate growth supported by strong retail sales. However, production was affected by a limited supply of feedstock Phosphoric Acid due to disruptions in upstream supply, including weaker availability of Phosphate Rock. While these challenges led to some supply tightness, they did not cause significant price volatility. The market also faced logistical disruptions as China approached the Lunar New Year, which is typically marked by factory closures and reduced production rates. Despite these hurdles, the overall supply chain remained resilient, and importers maintained moderate demand for TKPP. Moving into 2025, prices are expected to experience gradual increases, driven by ongoing demand in the agricultural and cosmetics sectors, coupled with supply constraints and rising energy costs that are influencing production expenses.
Europe
Like the North American region, Q4 2024, the price of Tetra potassium Pyrophosphate (TKPP) in Europe experienced a decrease compared to the previous quarter. This decline was driven by the availability of previous stock and weak demand from key sectors such as agriculture, where cautious purchasing behavior prevailed amid market uncertainties. The production rates remained stable in the exporting country, supported by moderate feedstock availability, despite some supply challenges. The European market saw an increase in TKPP imports due to concerns about potential disruptions and upcoming tariff changes, prompting some stockpiling by manufacturers. While the agricultural sector displayed conservative buying trends, the cosmetics sector experienced growth, bolstered by strong holiday season performance and increased demand for premium products. Despite the overall market facing downward pressure from supply constraints and subdued agricultural demand, the cosmetics sector showed resilience, helping maintain some stability in TKPP prices. These mixed market dynamics contributed to a slight decrease in prices during the final quarter of the year.
For the Quarter Ending September 2024
North America
In Q3 2024, the Tetra potassium Pyrophosphate (TKPP) price trend shifted movement in the North American region, showcasing moderate sentiments in the market. At the beginning of the quarter, prices witnessed an increase, driven by a combination of factors influencing the market dynamics. Primarily, there was a notable increase in demand from the pharmaceutical and food sectors, driven by significant investments and advancements in healthcare technologies. However, the supply side faced challenges due to disruptions in feedstock availability, particularly phosphoric acid, stemming from sluggish imports and logistical constraints.
In the middle of the third quarter, TKPP imports were affected due to hurricanes in the region contributed to the overall bullish market sentiment, highlighting a stable and robust pricing landscape for TKPP in the region. The offtakes were moderate, and market players again raised their quotations.
However, towards the end of Q3, the TKPP price trend shifted, and market players negatively revised the quotations due to reduced offtakes from the market as TKPP demand was stable in the Pharma sector. At the same time, the manufacturing and export rates were firm in the Asian Tetra potassium pyrophosphate exporter China, which raised the domestic inventory levels.
APAC
Like the North American region, the Tetra potassium Pyrophosphate (TKPP) price trend in the APAC region has been characterized by a fluctuating pricing environment. Initially, the quarter witnessed a slight decline as the production rates were firm, and cost support eased amid a decline in feedstock Phosphoric Acid prices due to a decrease in demand from fertilizer manufacturers driven by reduced consumption. Production rates initially remained moderate but later were hampered by weak phosphoric acid supplies, leading to robust cost support during the mid-quarter. The demand from the food sector was firm, exacerbated by weather-related disruptions that raised farm produce prices. Overall, the market trend was bullish, with low to moderate supply levels and moderate to high demand. Towards the end of the quarter, the TKPP price trend shifted movement, and prices witnessed a decline due to improved inventory levels in the region due to increased inventory levels and moderate offtakes from the textile sector. At the same time, the demand was sluggish from the food sector, which raised the market inventory levels, and market players negatively revised their quotations to improve offtakes.
Europe
In Q3, the Tetra potassium Pyrophosphate (TKPP) market in the European region has been characterized by a fluctuating pricing environment. At the beginning of the quarter, prices showcased an upward movement, as the demand was firm from the key downstream pharma sector, while the manufacturing activities were low amid labor shortages during summer holidays in the region. Reduced production with a consistent decline in the Eurozone Manufacturing PMI Index resulted in low supplies to the market and stressed the inventory levels amid firm offtakes. Supply-side dynamics also played a role, as supply availability was moderately low during the summer holidays creating imbalanced demand-supply dynamics. Yet demand failed to match this increase, which negatively TKPP consumption amid changes in global fertilizer demand. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains resulting in decreased supplies from exporters and stressed inventory levels in the market amid moderate consumption of TKPP in the regional agriculture sector.
For the Quarter Ending June 2024
North America
During the second quarter of 2024, the TKPP market in North America witnessed notable trends and developments. The demand for TKPP remained steady across various industries, including food processing, where it serves as a stabilizer and enhances shelf life. Additionally, the automotive sector continued to drive demand for TKPP-based coatings. Prices remained relatively stable, with minor fluctuations influenced by global economic conditions. Overall, the TKPP market in North America exhibited resilience and adaptability, positioning itself for further growth in the coming quarters.
APAC
In Q2 2024, Tetrapotassium Pyrophosphate (TKPP) prices in the APAC region displayed a marked upward trajectory, driven by several key factors. The quarter commenced with heightened demand from agrochemical and food sectors, alongside steady procurement from the pharmaceutical industry. This robust demand, coupled with moderate to high supply levels, catalysed the price escalation. Additionally, an uptick in international commodity prices and enhanced domestic industrial market dynamics provided further support to the rising cost trend. Focusing on China, which experienced the most significant price changes, the TKPP market was notably influenced by macroeconomic factors including a stable monetary policy and rising manufacturing activity. The Far East Export Index, reflecting increased freight rates, also played a crucial role in the positive pricing environment. Seasonal demand, particularly from fertilizer producers during the planting season, propelled prices. Yet, despite the increasing trend, the market faced interruptions due to periodic logistical challenges and adverse weather conditions. Comparing year-over-year performance, Q2 2024 witnessed a robust price improvement. Against the previous quarter, there was a marginal 1% price increase in the latter half of the quarter, indicative of a consistent upward trend. Conclusively, the quarter ended with TKPP priced at USD 1510/MT FOB Shanghai, underscoring a positive pricing climate with substantial drivers, despite minor disruptions and stable operating rates across the region.
Europe
TKPP demand remained robust across Europe, driven by its multifaceted applications. In food processing, TKPP acted as a stabilizer, enhancing product shelf life. The automotive sector continued to rely on TKPP-based coatings for corrosion protection and improved durability. The pharmaceutical industry also contributed to demand, utilizing TKPP in drug formulations. Its role as a buffering agent and pH adjuster made it indispensable in various medications. European TKPP production facilities maintained steady output. Supply chain disruptions were minimal, ensuring consistent availability. Prices remained relatively stable, with minor fluctuations influenced by global economic conditions. However, supply-demand dynamics kept any drastic price spikes in check. European regulatory bodies closely monitored TKPP usage, emphasizing safety and environmental compliance. Manufacturers adhered to stringent guidelines, ensuring responsible handling and disposal. Europe’s TKPP market positioned itself for further growth. Innovations in applications, such as water treatment and detergents, contributed to sustained demand. Collaborations between manufacturers and end-users fostered product development, expanding TKPP’s reach beyond traditional sectors. In summary, the TKPP market in Europe during Q2 2024 demonstrated resilience, adaptability, and a positive growth trajectory.
For the Quarter Ending March 2024
North America
The first quarter of 2024 saw a weak price trend for Tetra Potassium Pyrophosphate (TKPP) in the United States. The winter months typically experience a dip in demand for TKPP. Industries like food processing and agriculture, major consumers of TKPP, have lower production needs during this period. This slack in demand puts downward pressure on prices.
Phosphoric acid and potassium chloride, the key raw materials for TKPP production, witnessed a price decline in January and February. This decrease in feedstock costs presented an opportunity for manufacturers to lower their final TKPP prices, further amplifying the downward trend. As March arrived, the agricultural sector geared up for the spring planting season. This seasonal shift led to a rise in demand for TKPP, a crucial additive in fertilizers.
This price fluctuation highlights the interplay between demand cycles and raw material costs in the TKPP market. While January and February presented a buyer's market with lower prices due to reduced demand and favorable feedstock costs, March brought a shift towards a seller's market with higher prices driven by increased agricultural activity.
APAC
In Q1 2024, the Tetrapotassium Pyrophosphate (TKPP) pricing dynamics in the APAC region were influenced by various factors with the overall trend showing a bearish sentiment. The demand for TKPP remained low, both domestically and internationally, particularly in end-user segments such as detergents and the cleaning industry during January 2024. The Chinese economy struggled to gain momentum, despite government efforts to inject optimism through policies. The production side saw a declining trend in the prime raw materials potassium carbonate and phosphoric acid, which eased the production cost of TKPP. However, the industry faced headwinds from the destocking season, where companies reduced their inventory levels, further dampening demand. However, China's Tetrapotassium Pyrophosphate market exhibited surprising stability during March 2024 which was attributed to a cautious approach adopted by the downstream surfactant and other end-use industries. The demand for Tetrapotassium Pyrophosphate, a crucial additive in surfactant production, remained moderate throughout the period. Looking at the year-over-year comparison, the TKPP price in Q1 2024 decreased compared to the same quarter last year. Additionally, the price in Q1 2024 decreased compared to the last quarter of 2023.
Europe
The European market for Tetra Potassium Pyrophosphate (TKPP) witnessed a sluggish price trend in the first quarter of 2024. The winter months in Europe generally translate to lower demand for TKPP. Industries like agriculture and food processing, major consumers of TKPP, operate at a slower pace during this period. This lack of demand creates an environment where suppliers have to compete, driving prices downward. Phosphoric acid and potassium chloride, the essential ingredients for TKPP production, saw a price decrease in January and February. This decline in raw material costs presented a window of opportunity for European manufacturers to reduce their production expenses. The lower production cost allowed them to offer TKPP at more competitive prices, further amplifying the downward trend. As March arrived, the European agricultural sector began gearing up for the spring planting season. This seasonal shift triggered a surge in demand for TKPP, a vital component in fertilizers. With demand outstripping existing supply, TKPP prices in Europe started to climb.
