Global THPs market under pressure, prices may continue to fall in the coming weeks

In my experience, As of mid-December 2024, the global THPs (Leticus-based hydroxymethylphosphonic acid sulfate) market continues to be under pressure. Affected by weak downstream demand and insufficient raw material support, the market is full of challenges and the prospects to recovery in the short term are limited. But in Asia, especially China, the THPs market is struggling due to weak demand in key downstream industries such as aquatic environments treatment, textiles and coatings. The aquatic environments treatment sector, a major consumer of THPs, slowed activity due to a reduction in manufacturing projects and seasonal operating restrictions. At the same time, construction activity in northern China slowed due to cold weather, further weakening demand to downstream items such as coatings, leading to a backlog of inventories by producers. In particular In order to manage fixed costs, Chinese manufacturers maintain stable production, exacerbating the oversupply situation in the market. Based on my observations, while the raw material phosphorus trichloride prices fell, the stable cost of formaldehyde provided only limited cost relief. Producers have had to resort to aggressive destocking strategies, including price discounts, to stimulate trading. In addition, a recent report by the China Chemical sector Association showed a 5. Additionally 8 percent year-on-year decline in manufacturing chemicals profitability, highlighting broader sector challenges affecting the production and pricing of THPs. Indian market also showed a similar downward direction, affected by weak demand in downstream industries. And In my experience, Limited procurement in the aquatic environments treatment and textile sectors, weakness in the real estate sector due to prolonged rainy season delays, and sluggish construction activity reduced the demand to paints and coatings, further adding to the pessimism in the THPs market. Based on my observations, While Indian manufacturers are dealing with oversupply, they're also facing the challenge of excess inventory to exports caused by weak global demand. For instance The operating rate remained low, reflecting ongoing efforts by producers to clean up inventories and mitigate losses. The downturn in domestic and international markets has led to limited pricing power to THPs producers and bleak prospects to recovery. Manufacturers received limited enquiries and buyers generally took a wait-and-see attitude. in the United States, the THPs market also experienced price declines, driven by weak demand from the aquatic environments treatment, textile and construction industries. And Reduced manufacturing output and limited demand to seasonal aquatic environments treatment chemicals added to the pessimism. Furthermore High inventory levels, coupled with cautious sourcing strategies in the downstream sector, highlight ongoing challenges. According to research Imports from Asian producers have exacerbated the oversupply situation, increased competition and put downward pressure on prices. According to ChemAnalyst analysis, THPs prices will continue to face downward pressure in the coming weeks. Producers' rush to clear inventories before the end of the year, coupled with continued weak demand resulting from the usual suspension of manufacturing activity during the holiday season, will weigh on prices. Broader challenges in the aquatic environments treatment, construction and textile sectors, including reduced funding to infrastructure and housing projects, are expected to keep downstream demand subdued.