The Phosphonate Price in the North American market has fluctuated within rangebound during the first half of the quarter. That is further coupled with the reduced operations at the manufacturing facilities impacting the demand in the domestic market. Although to sustain the netbacks efficiently, producers adjusted the operating rates in the domestic market. In addition, the demand has dropped in the latter half, further coupled with a blizzard storm by the quarter end, enforcing a negative outlook for Phosphonate in upcoming terms. Although, the cost support from the feedstock Yellow Phosphorus has staggered on lower levels, assisting in depressurizing the overall market scenario to a certain extent. Therefore, the DDP USGC discussion for Phosphonate-ATMP was assessed at USD 1564 per tonne during the quarter ending December 2022.
Overall, the Phosphonate market sentiments in the APAC region were mixed during the fourth quarter of 2022. For the majority period, the Phosphonate market was dictated by the cost support from the Yellow Phosphorus market. The availability of sufficient feedstock has proportionally impacted the supply outlook of Phosphonate in the Chinese domestic market. At the same time, the demand outlook has remained sluggish amidst the strict COVID norms implemented by the Chinese authorities, although at the start of the quarter, the impact of energy rationing was observed. In contrast, the demand in the prominent Southeast Asian markets has also dropped in November amidst the peak festive season. As a ripple effect, the FOB Shanghai discussions for Phosphonate-ATMP were assessed at USD 1225 per tonne in December 2022.
The Phosphonate in the European markets has witnessed mixed sentiments during the fourth quarter of 2022. The market obtained a substantial gain in October, and the domestic outlook has sustained adequate recovery against the losses that occurred during the summer break. Although the gains were short-lived amidst the rising inflation and interest rates, consumer sentiments are more conservative than anticipated. At the same time, the Prices of Yellow Phosphorus has pressurized the supply outlook considerably. The stance of the European Union over the Russian energy supplies has levied a considerable impact on the operating cost of manufacturing. In response, several producers and downstream players adjusted the operating rates to sustain the supply-demand dynamics of Phosphonate in the volatile environment across the region. Although, the offers attained slight stability by the second half of the quarter. As a ripple effect, the FD Hamburg discussions for Phosphonate-ATMP were assessed at USD 1534 per tonne.
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