In December 2024, Sodium Hexametaphosphate (SHMP) prices in Asian and European markets experienced a decline due to falling feedstock costs and subdued demand from the detergent sector, a key downstream industry. The price drop was uniform across major regions, with SHMP prices in China decreasing by 1.4% on a FOB Shanghai basis and in the Netherlands by 1.4% CFR Rotterdam. The reduction in input costs, driven by lower prices for Phosphoric Acid and Soda Ash, coupled with weak detergent production rates and constrained consumer spending, created downward pressure on SHMP pricing. 

The price of Phosphoric Acid, a crucial raw material for SHMP production, saw a notable decline in China due to robust domestic production and elevated inventory levels. Similarly, Soda Ash prices in both Asia and Europe softened during December, driven by an oversupplied market, and reduced industrial activity. These feedstock price reductions translated into lower production costs for SHMP manufacturers, enabling them to adjust their pricing to reflect the softened demand environment. 

Demand from the detergent sector, a key downstream industry for SHMP, remained subdued throughout December. In Europe, procurement was dampened by reduced retail activity during the holiday season, as consumers focused on flexible spending. In Asia, the detergent industry experienced slower production rates due to weaker export orders and a relatively stagnant domestic market. These factors collectively weighed on SHMP consumption, further pressuring prices downward. 

Freight rates also played a role in the declining SHMP market. The cost of shipping from Shanghai to Rotterdam decreased by 1% during the last week of December, reflecting lower container demand and improved logistics efficiency. However, Drewry’s forecasts indicate that transpacific freight rates are expected to rise in January 2025. This anticipated increase is driven by front-loading of shipments ahead of a potential International Longshoremen’s Association (ILA) port strike in the United States and expected tariff hikes under the incoming Trump Administration. 

As per ChemAnalyst, SHMP prices are anticipated to stabilize in January 2025 in both regions. In Asia, restocking activity ahead of the Lunar New Year is expected to provide some support to the market. However, the European region is anticipated to experience moderately low demand due to adverse weather conditions affecting industrial and consumer activities. This subdued demand environment may limit any significant price recovery in the short term. 

Geopolitical uncertainties will also remain a critical factor in shaping market dynamics. Buyers are expected to adopt a cautious approach, especially considering potential trade disruptions from the ILA port strike and tariff changes. As such, the SHMP market may face a mixed outlook, with regional variations influenced by specific demand patterns and broader economic conditions.