Trisodium phosphate prices have continued to drop in the USA market during the first quarter of 2023 amid slow purchasing sentiment and strong supplies. Feedstock Phosphoric acid has declined, which resulted in the low production cost of Trisodium Phosphate. In addition, demand from the food additives and lubricant industries has been weak, and there were limited inquiries for new orders from end-users, resulting in a bearish pricing trend in the domestic market. In addition, the manufacturing activity in the US market has also been underperforming, contributing to the sluggishness in the market. Operating rates have remained stable, leading to high inventory levels in the USA. Additionally, market participants reported that the recent banking crisis in the USA had had a negative impact on the market growth of various commodities, including Trisodium Phosphate.
Prices of Trisodium Phosphate have witnessed an upward trend in China market during the first quarter of 2023 due to improved buying sentiments in the market. The increase in procurement reported from the downstream food additives and lubricant industries has impacted the price value chain of Trisodium Phosphate in the Chinese domestic market. Thus, as a result of strong downstream demand, the manufacturers were compelled to revise their offers to gain some profit margins. In addition, operating rates were improved in the domestic market due to increased consumption from the downstream industries. Although, feedstock Phosphoric Acid Prices showed a narrow fluctuation throughout the quarter. Furthermore, China's PMI increased from 49.2 to 51.6 in February, signifying an expansion in both manufacturing and industrial activity.
Trisodium phosphate prices have dropped in the European market during the first quarter of 2023 owing to gloomy buying sentiments along with firm supplies in the region. In addition, domestic production remained under check while the Trisodium phosphate imports from Asia improved on European shores as the freight charges declined drastically. On the other hand, due to high-interest rates and inflation, the demand from the downstream food additives and lubricants industries has remained weak in the region. There were no new orders from end-use industries, so the product ended up in stock. Furthermore, the European region has witnessed a drop in PMI for March 2023 as Eurozone Manufacturing PMI declined to 44.7, measuring a dip of 3.5% on a monthly basis and remaining in contraction.
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