In the first quarter, Sodium Tripolyphosphate (STPP) prices decreased due to weak consumer demand and abundant inventories. In China, prices fell to USD 854/MT FOB Shanghai as downstream industries continued destocking and factory activity contracted for the third consecutive month. Meanwhile, in India, cheaper imports further pressured prices amid decreased manufacturing costs linked to lower phosphoric acid prices. In contrast, Europe experienced a positive pricing environment, marked by moderate price increases driven by strong demand from sectors like water treatment, detergents, and food and beverages. Enhanced business confidence and rising consumer inquiries supported this growth, indicating divergent trends across regions in the STPP market during the quarter.
In the second quarter, Sodium Tripolyphosphate (STPP) prices declined, primarily influenced by weak upstream cost support and reduced consumer demand. Prices in China decreased by 2.3% from the previous quarter, falling to USD 837/MT FOB Qingdao, driven by an oversupplied domestic market and sluggish activity in downstream sectors. The typical summer demand surge in water treatment and textiles failed to counterbalance these downward pressures, as prices dropped by 2% in the first half of the quarter. Additional challenges included increased freight charges, capacity constraints, and plant shutdowns, leading to a predominantly bearish market sentiment despite some isolated areas of demand resilience.
In the third quarter, Sodium Tripolyphosphate (STPP) prices remained strong, as seasonal declines in cleaning product sales were counterbalanced by steady consumption in food processing and industrial applications like water treatment and textiles. Pricing fluctuated between USD 810 and USD 841 per ton FOB Qingdao, China, influenced by rising raw material costs and supply chain disruptions. Major producers, especially in the Asia-Pacific region, were expanding capacity despite regulatory pressures in North America and Europe. Challenges included increasing regulations on phosphates, competition from eco-friendly alternatives, and shifting consumer preferences towards sustainable products. The market outlook suggested modest growth driven by innovation, with food processing and industrial sectors expected to maintain steady demand amid seasonal fluctuations.
In the fourth quarter, the growing demand for Sodium Tripolyphosphate (STPP) led to higher prices due to holiday preparations and increased production in consumer goods, particularly cleaning products. Prices peaked during this quarter as heightened demand and potential supply chain constraints arose. Companies were increasingly focusing on sustainability, exploring alternatives to STPP influenced by consumer preferences for eco-friendly products. Overall, while the global STPP market was expected to grow, driven by expanding applications across various sectors, growth rates were likely to vary regionally based on local regulations and industry demands.