USA Sodium Tripolyphosphate Prices Surge Amid Supply Chain Disruptions in June 2024

Texas, (USA): Sodium Tripolyphosphate prices in the USA rose in June 2024 due to the influx of higher-priced goods. Higher freight and logistics charges coupled with delayed shipments have been a major factor for higher Sodium Tripolyphosphate prices. The inquiries from the water treatment sector remained stable, with companies in this segment reporting regular profits due to firm demand for Sodium Tripolyphosphate in water and wastewater treatment products and services. However, the overall demand scenario was calm as the consumers of Sodium Tripolyphosphate were not actively procuring.

Another factor that has added to higher prices of Sodium Tripolyphosphate is higher logistics charges. A considerable amount of Sodium Tripolyphosphate comes to the United States from Canada. And in June, the logistics sector in the USA experienced notable shifts in market dynamics. Spot market loads increased by 3.0%, while spot market capacity declined by 2.1%, indicating higher demand against a tightening supply of available trucks. This imbalance led to a significant rise in load-to-truck ratios across different segments. Overall, the data suggests that while the demand for logistics services in June was robust, capacity constraints led to higher spot market rates, particularly for van and reefer transportation. For June 2024, the assessed prices of Sodium Tripolyphosphate (STPP) CFR Los Angeles were USD 1160 per tonne.

Despite ongoing supply chain issues, like overseas port congestion and high shipping costs, import levels for sodium tripolyphosphate are expected to remain high next month. This is due to increased detergent use driven by back-to-school demand. Overall, economic health has shown further developments, and industry participants are optimistic about the future of Sodium Tripolyphosphate in the market.

Additionally, the shipping industry continues to struggle in the Middle East due to the ongoing Red Sea route suspension, while new tensions have arisen in Southeast Asia. Severe congestion at the Singapore port and China’s Shanghai/Ningbo ports has exacerbated the disruptions in the global market. This summer, companies have had to make significant adjustments to their operational costs due to rising container rates for ocean freight. Additionally, a few manufacturers in Asia were operating at reduced capacity in June, which had a short-term impact on Sodium Tripolyphosphate prices.

According to the ChemAnalyst database, Sodium Tripolyphosphate prices are expected to continue increasing in the coming weeks due to higher freight costs and improving demand conditions. Also, industry experts presume that a better economic situation and decreased burden on businesses will positively influence the specialty chemical market.