For the Quarter Ending June 2022
Tri Calcium Phosphate's market in North America remained brisk throughout the second quarter of 2022. Due to protracted port congestion in the US, trade activity from the importing countries was significantly hampered. Domestic traders and producers continued to be concerned about the high cost of chemicals used in the food and beverage industry throughout the quarter due to several factors, such as the US's soaring inflation, the geopolitical unrest in Russia and Ukraine, and the wildly fluctuating nature of oil prices. The downstream sectors in the region continued to see steady offtakes over the quarter.
Due to several factors, the Asia Pacific region's Tri Calcium Phosphate market showcased a decreasing trend during the second quarter of 2022. Tri Calcium Phosphate values in the Chinese market decreased during the first half of the quarter before stabilizing in the second half of the quarter. Due to the unreasonable zero covid tolerance policy implemented after the covid outbreak in the first week of April, sending the product to foreign markets became much more difficult. Considering China is the largest exporter of Tri calcium phosphate, the tolerance laws and restrictions greatly hampered production and logistics. This inhibited the product's ability to be transported across the nation and to significant international shipping ports. Due to adequate stocks held by suppliers and customers in the Chinese and Indian markets, offtakes from the downstream food and beverage sectors remained stable throughout the quarter
During the second quarter of 2022, the European Tricalcium Phosphate market remained favorable. Offtakes in the downstream food and beverage industries remained constant throughout the quarter regarding demand. Local manufacturers and traders had a substantial supply of goods available to meet the overall downstream demand in the European market. While the crisis between Russia and Ukraine severely affected shipping costs and the flow of commodities into and out of Europe, it also made it more challenging for Russia and Germany to conduct business with the international markets.
For the Quarter Ending March 2022
Prices of Tri Calcium Phosphate fluctuated in the North American market during the quarter 1 of 2022, on the back of unstable demand and supply gap. The consumption of Tri Calcium Phosphate in food and healthcare industry witnessed see-sawed trend throughout the quarter which eventually caused instability in Tri Calcium Phosphate prices. Besides, the unsteady pricing trend of raw material Yellow Phosphorus further influenced the Tri calcium Phosphate market and caused the prices to waver even more. Conclusively, the evaluated prices of Tri Calcium Phosphate in the US were assessed at USD 3120/ MT in January, which decreased to USD 2985/MT in the month of February.
Mirroring the pricing trend in North America, prices of Tri Calcium Phosphate showcased a flickering trend in Asia-Pacific region during the 1st quarter of 2022. The prime factor behind this instability in prices were inconsistent demand from end-user industries. Furthermore, the supply rate was see-sawing and the prices of Tri Calcium Phosphate Retail were assessed at USD 2100 in January which decreased to INR 1900/ MT In February. Traders remained anxious as buyers adopted a wait and see approach amidst the uncertain pricing trajectory.
Prices of Tri Calcium Phosphate exhibited the same trend in European countries as it has showed in North America and Asia-Pacific region. Tri Calcium Phosphate prices showcased high volatility amidst inconsistent downstream demand during the 1st quarter of 2022. Conclusively, prices of Tri Calcium phosphate in Germany assessed at USD 3295/MT CFR Hamburg during the month of January which first decreased in February and then witnessed a surge in March 2022.
For the Quarter Ending December 2021
Global scarcity of raw material induced after production halts in China increased the prices of Tri Calcium Phosphate in US market. Despite lukewarm demand from the domestic market, Tri Calcium Phosphate price remained buoyant throughout the quarter. China is the largest manufacturer of yellow phosphorus, which is a prime feedstock for Tri Calcium Phosphate, thus production cuts in the country affected global supply chain of raw material yellow phosphorus and thus prices skyrocketed within a small span of time. Taking pressure from high raw material price, Tri Calcium Phosphate prices rose effectively and heard hovering around USD 6800/MT during final week of December.
Asian market shook by changing dynamics of supply chain, as the production cuts in China put burden on other countries. Due to dual energy policy in China and later production cuts imposed in order to reduce emission ahead of winter Olympics, made a significant impact on prices of several commodities including Tri Calcium Phosphate in regional market. After witnessing exponential rise in raw material yellow phosphorus cost, China started importing yellow phosphorus from Vietnam, which reduced the availability in global market, as Vietnam is the global players of yellow phosphorus. Meanwhile, Indian market also baffled with changing market trend of China, as the country highly depend upon China for imports. These issues escalated prices of Tri Calcium Phosphate in India, which hovered around USD 2148/MT during December.
Similar to other regions, European market also witnessed a similar market trend during this quarter. Global raw material scarcity influenced European market too, which pushed up prices of raw material yellow phosphorus. Europe also imports yellow phosphorus from Kazakhstan and Vietnam, thus due to unavailability of product in China, prices of raw material shot up in Europe too. Furthermore, Europe also had to face other issue i.e., soaring natural gas prices, which was the prime factor behind rising cost of production. These price escalations also pushed up the price of Tri Calcium Phosphate across the regional market.
For the Quarter Ending September 2021
In North America, prices of Tri-Calcium Phosphate (TCP) rose effectively in Q3 of 2021 backed by the increment in the prices of feedstock Phosphoric Acid. Moreover, the demand for TCP from the downstream manufacturers also improved in this quarter which further led to the hike in the prices of TCP across the region. Besides, with lower production levels owing to the impact of Ida hurricane coupled with the logistical issues TCP values shot up in this timeframe in North American region as well as in the international markets.
Market outlook of Tri Calcium Phosphate observed a significant rise in the Asia Pacific region in Q3 2021. Prices soared in the Asian markets owing to the spiraling values of Phosphoric Acid in the region due to a strong rise in global demand. In India, prices of Tri Calcium Phosphate soared during this quarter backed by firm offtakes from the downstream industries and the global upsurge in the feedstock Phosphoric Acid prices. Furthermore, expensive imports from other countries due to high freight charges and low availability of shipping containers also influenced the values of Tri Calcium Phosphate in this quarter. Tri Calcium Phosphate Ex-Bhiwandi prices settled at USD 1042 per MT in September showcasing a significant hike by around USD 154/MT since July.
In Europe, Tri Calcium Phosphate market experienced an upward rally in the third quarter of 2021. Increment in the values of feedstock Phosphoric Acid and stable demand further led to the increased price of TCP across the region. Moreover, lower imports from the international market due to the impact of Ida hurricane and congestion on several ports in China further tightened the supply which directly shot up TCP prices in the region. Besides, rising energy costs in Europe due to the natural gas crisis further pushed up TCP prices to record levels in Q3.
For the Quarter Ending June 2021
During the second quarter of 2021, supplies of Tri-Calcium Phosphate (TCP) in the North American region improved as the inventories level of the key feedstock calcium hydroxide were significant to amplify the production of Tri-Calcium Phosphate. Soaring Phosphoric Acid kept the prices reasonably high despite stable demand from the downstream consumer goods industry throughout the second quarter of 2021. TCP sales remained subdued as shipment and transport disruptions continued to weigh on the market supply, further adding tailwinds for the regional pricing.
In the Asia Pacific region, Tri Calcium Phosphate (TCP) supply was ample to meet rising enquiries from the downstream industry. Despite the second COVID wave in India the offtakes were consistent from the downstream consumer goods industries. Surplus inventories of upstream Calcium Hydroxide supported the production of Tri-Calcium Phosphate whereas, some hinderance could be sensed due to the reduced production rate in the Phosphoric Acid industry. Overall, TCP demand outlook in the Asia pacific region was firm along with the consistent offtakes from the consumer goods industry such as toothpaste and baby powder.
The European Tri-Calcium Phosphate market witnessed a stable demand this quarter, backed by modest offtakes from the regional, feed additive and personal care segment. On the other hand, price of feedstock Phosphoric Acid was rising in the meantime, due to the firm offtakes from the agrochemicals segment in the regional market. The demand from the animal feed segment-maintained sturdiness during this timeframe. However, regional experts were raising concern over the imports of Tricalcium Phosphates and some of its bad effect on cattle. In addition, rising freight cost and logistical issue also exacerbated the overall market scenario of the region.
For the Quarter Ending March 2021
The Tricalcium Phosphate market witnessed balance demand from the personal care, cosmetics, and pharmaceutical sector during Q1 2021. However, the supply fundamentals were severely hampered by the limited availability of the feedstock of Calcium Hydroxide and Phosphoric Acid as a repercussion of the sub-zero temperature in the USA gulf region which disrupted the overall supply chains in the region. Supply shortages amid ample demand hiked the prices of Tricalcium Phosphate in the region.
The supplies of the Tricalcium Phosphate in the Asia Pacific region were improved as the commercial and market activities picked up pace. The industrial production faced setback in the traditional offseason during the spring festival in China. Demand was sturdy, as the offtakes from the pharmaceutical grade and technical grade remained firm, whereas the demand hiked for the feed grade from the personal care and cosmetics sector. Meanwhile the prices of Tricalcium Phosphate in India were assessed around USD 822 per tonne in March.
The European Tricalcium Phosphate market fundamentals were hampered due to the tight supplies, inflation in raw material rates amid persistent supply shortages due to global disruptions. Furthermore, regional imports stood hampered as the shipments from the USA declined followed by congestion in the trade routes between Asia and Europe. However, the demand witnessed a constant uptrend due to constant uptakes from the downstream pharmaceutical, cosmetics and personal care sector.
For the Quarter Ending December 2020
The Asian market was experiencing boom during Q4 2020 post healthy recovery from COVID-19 slowdown. A global TCP supplier stated that they had a healthy demand from China during final quarter due to significant revival of domestic and industrial activities in China from COVID 19. In addition, leading global specialty minerals and specialty chemicals company, ICL group’s new white phosphoric Acid (WPA) unit in China was expected to complete before Q1 2020. This plant will boost the market sentiments and improve the supply of feedstock phosphoric acid across the region. Furthermore, in the Indian market, the COVID-19 recovery improved the demand of TCP mostly from health and nutrition sector. Improved demand led to rise in prices which rose from USD 696.3/tonne (October 2020) to USD 757.5/tonne (December 2020).
In the North American region, the demand of TCP remained stable during Q4 2020. Before Q4 2020, the demand for industrial grade phosphates and acid was higher. Later in the final quarter, market shifted to food grade phosphates and acids. The price of feedstock phosphoric acid took an uptrend amid stable demand and supply situation. A leading TCP supplier reported stable sales volume throughout the quarter but gained numbers compared to prior quarter.
In the European market, demand of TCP improved during Q4 2020 compared to previous quarter. The demand majorly came from nutritional supplements sector. For the domestic usage, feedstock phosphoric acid also increased across the region. Amid restricted material movement across Asian ports and negative production activities as an effect of second wave of COVID-19, price of Phosphoric Acid was reported high in the region.