Tri Calcium Phosphate Market Watch: Real-time Pricing and Analysis

In the third quarter of 2023, the North American Tricalcium phosphate market saw a significant devaluation. From July to September, CFR New York prices for Tricalcium phosphate declined from $1280 to $1280 per metric ton, marking the close of the quarter. This price shift clearly indicated a preference for reducing prices, resulting in an average quarterly decrease of 0.47%. The global Tricalcium phosphate market, in the same period, grappled with oversupply issues, leading to a notable drop in market values. Adding complexity, domestic traders strategically accumulated substantial Tricalcium phosphate inventories. To mitigate potential losses, these traders adopted a strategic approach by reducing their price quotations, contributing further to the overall decline in market prices. Despite a modest slowdown in inflation during the third quarter, mainly due to significant economic shifts in the United States, market participants remained cautious due to the Federal Reserve’s decision to increase interest rates. The reduction in Tricalcium phosphate prices can be largely attributed to a substantial decrease in the cost of its primary raw material, Phosphoric acid, in exporting countries. This factor played a pivotal role in influencing the manufacturing cost of Tricalcium phosphate in these exporting nations. Moreover, North American countries, as the principal importers of Tricalcium phosphate, closely mirrored the pricing trends observed in the Chinese market, where China acts as the primary exporter. Consequently, the third quarter of 2023 presents a unique opportunity for businesses and consumers alike to capitalize on the reduced pricing of Tricalcium phosphate in the North American market.

Asia Pacific

In the third quarter of 2023, the Tricalcium phosphate market underwent a significant and favorable transformation in the Asia Pacific region. Prices exhibited a downward trend, decreasing from $980 per metric ton in July to $975 per metric ton FOB Shanghai in September, marking a notable quarterly average decrease of 0.47%. This price fluctuation was primarily driven by substantial reductions in Tricalcium phosphate prices, stemming from a noteworthy decline in the cost of its raw materials, particularly Phosphoric acid, in the domestic market. Furthermore, the import of raw material at highly competitive rates and in large quantities also played a pivotal role in shaping the market trajectory. The backdrop to this price reduction was heavily influenced by the economic conditions, especially in China, the world’s second-largest economy. China experienced an economic slowdown that extended from the first half of 2023 into the second half, which cast a shadow over the beginning of the third quarter. This deceleration can be attributed to a combination of factors, including increased deflation, a surge in youth unemployment, and weakened foreign demand. In terms of manufacturing, Tricalcium phosphate production in China remained closely attuned to customer demand, adapting to the ever-changing market dynamics. During this period, a notable decline in demand was observed, not only within the domestic market but also from international markets. This synchronized decrease in demand further reinforced the market dynamics in the third quarter.

Europe

In the third quarter of 2023, a substantial transformation in the pricing dynamics of Tricalcium phosphate was observed in Europe. Prices decreased from $1230 per metric ton in July to $1210 per metric ton CFR Hamburg by September, signifying a significant decline with a quarterly average decrease of 1.01%. This shift was primarily instigated by an oversupply of Tricalcium phosphate on a global scale, exerting downward pressure on its market valuation. Complicating matters further, domestic traders chose to amass significant Tricalcium phosphate inventories. To proactively manage this challenge and mitigate potential losses, they strategically opted to lower their price quotations, thereby contributing to a broader devaluation of the market. The noteworthy drop in Tricalcium phosphate prices can be attributed to a substantial reduction in the cost of its primary raw material, Phosphoric acid. This pivotal alteration influenced the overall manufacturing cost of Tricalcium phosphate in exporting nations, resulting in a downward price trend. Additionally, the European market, a major Tricalcium phosphate importer, and China, a leading exporter, closely monitored the pricing patterns of the Chinese market. Consequently, this price decrease reflects the broader dynamics of the global market.