For the Quarter Ending June 2025
North America
The North American cleaning solvent sector displayed mixed trends in Q2 2025, with July developments shaping near-term outlooks. Toluene prices fell (-4.32%) as soft solvent and gasoline blending demand offset crude oil strength, while weak downstream coatings and adhesives markets capped gains. Acetone gained modestly (+3.27%), though overall sentiment remained bearish amid chronic oversupply, weak BPA/MMA demand, and U.S. plants operating at reduced capacity. Isopropyl Alcohol (IPA) rose slightly (+0.67%) on tightening supply from propylene costs and outages, with steady pharma and industrial demand keeping outlook firm. Hydrogen Peroxide advanced (+2.51%), supported by supply disruptions and higher energy costs, though demand stayed cautious. Hydrochloric Acid dipped (-0.75%) in Q2 but shifted higher in July on pre-hurricane stockpiling and weather-related supply chain concerns. Methanol saw the steepest decline (-21.35%) as high inventories, soft derivatives demand, and easing natural gas costs pressured prices. Caustic Soda strengthened (+4.16%), holding steady on balanced supply-demand fundamentals and stable production, despite tariff-related trade uncertainty. Iso-Butanol increased (+3.31%) despite Q2 weakness, though July prices slipped as post-holiday inventory clearance and hurricane-season uncertainty weighed on procurement.
Overall, the sector reflects divergent dynamics: oversupply-driven weakness in methanol and toluene versus firming trends in IPA, caustic soda, and hydrogen peroxide.
Europe
The European cleaning solvent sector in Q2 2025 reflected mixed pricing trends shaped by weak industrial demand, volatile feedstock costs, and logistical constraints. Toluene prices declined (-4.49%) as demand from coatings, resins, and automotive chemicals stayed subdued despite stable supply. Acetone faced sharper pressure (-6.27%) from muted downstream consumption, oversupplied spot markets, and high energy-driven costs. Isopropyl Alcohol (IPA) rose (+4.75%), supported by pharmaceutical and personal care demand, export competitiveness, and strategic inventory management, though late-quarter destocking limited gains. Hydrogen Peroxide posted the strongest increase (+13.83%), driven by higher production costs and firm textile and paper sector demand. Hydrochloric Acid also advanced (+7.92%) on summer-season industrial activity and higher distribution costs. Methanol slipped (-3.67%) amid oversupply, weak downstream pull, and steady imports, while Caustic Soda remained largely stable (-1.06%), reflecting balanced supply-demand fundamentals and easing energy inputs. Iso-Butanol rose (+6.50%), though demand from construction and coatings stayed weak, with backlogged inventory sales weighing on sentiment.
APAC
The APAC cleaning solvent sector in Q2 2025 exhibited mostly bearish trends, weighed down by weak downstream demand, oversupply, and seasonal slowdowns. Toluene (-12.57%) saw sharp declines on sluggish benzene conversion and solvent use, with exports to China muted. Acetone (-3.73%) remained stable-to-soft as ample supply and weak automotive, coatings, and electronics demand capped upside, despite firm upstream benzene. Isopropyl Alcohol (+3.37%) bucked the trend, stabilizing in June on tightened supply from shutdowns, though overall demand stayed cautious. Hydrogen Peroxide (-1.59%) stabilized after a Q2 slump, supported by paper and textile recovery, yet oversupply limited gains. Hydrochloric Acid (-3.29%) fluctuated but gained in July on tariff-related demand recovery and elevated costs. Methanol (-10.19%) weakened further on oversupply from Middle Eastern imports and weak MTO/formaldehyde consumption. Caustic Soda (-3.67%) stayed largely stable with balanced supply-demand. Iso-Butanol (-8.80%) declined on oversupply, aggressive Chinese exports, and seasonally weak paints/coatings demand. C9 solvent (+0.91%) gained modestly in Q2 but softened in July amid monsoon-driven demand weakness and high inventories. C10 (-1.25%) followed similar bearish sentiment, pressured by seasonal slowdowns and oversupply. Overall, the sector faced bearish momentum with isolated resilience in IPA and C9, while supply overhangs and muted industrial recovery restrained prices.
North America
In Q1 2025, the North American chemical market exhibited diverse trends across key products. Isopropyl Alcohol (IPA) saw a marginal decline of 0.18% despite strong demand from pharmaceutical and cleaning applications, as easing supply constraints tempered prices. Caustic soda experienced a significant 4.38% drop due to muted demand from alumina, pulp, and textile sectors, compounded by steady domestic output and oversupply pressures.
Iso-butanol prices fell slightly by 0.24% as constrained production offset weak domestic demand, particularly in paints and coatings. Similarly, methanol declined by 1.14%, reflecting subdued downstream activity and rising domestic output, despite temporary natural gas cost spikes.
In contrast, hydrochloric acid (HCl) recorded a sharp 14.55% increase, driven by persistent supply constraints and strong steel industry demand. Hydrogen peroxide rose 11.10%, propelled by energy cost pressures and consistent industrial demand from pulp and textile sectors.
Meanwhile, acetone and toluene prices fell 13.12% and 1.91%, respectively, influenced by weak downstream demand, oversupply, and softened upstream costs. Acetone’s decline was particularly affected by constrained cumene availability, while toluene faced bearish sentiment from subdued activity in solvents and polymers. These mixed trends reflect varied demand recovery and supply dynamics across the region heading into Q2 2025.
Europe
In Q1 2025, the European chemical markets showed a varied performance amid complex supply-demand dynamics and logistical challenges. Isopropyl Alcohol (IPA) prices surged significantly by 8.76%, driven by robust demand from pharmaceutical, cleaning, and personal care sectors alongside supply constraints exacerbated by port congestion and currency depreciation. The C10 solvent market experienced a modest rise of 0.10%, supported by firm demand from paints, coatings, and automotive sectors despite intermittent logistical disruptions. Conversely, caustic soda prices declined sharply by 15.23%, pressured by subdued industrial demand, ample regional supply, and persistent economic uncertainties in Germany. Iso-Butanol saw a moderate increase of 2.00%, reflecting rising feedstock propylene costs and production bottlenecks, although weak downstream demand kept gains limited. Methanol prices fell by 4.93%, weighed down by subdued construction activity and easing feedstock costs despite temporary supply chain disruptions. Hydrochloric Acid (HCl) edged up by 2.13%, benefiting from improved demand in steel production and ongoing supply tightness due to strikes and port congestion. Hydrogen peroxide prices climbed strongly by 12.14%, supported by increased consumption in pulp, paper, and textile industries and higher energy-driven production costs. Meanwhile, acetone prices dropped steeply by 20.94%, impacted by weak downstream demand and stable feedstock availability. Toluene experienced a slight decline of 0.43%, hindered by volatile energy markets and cautious procurement in solvent sectors. Overall, Q1 reflected a mixed but cautious market sentiment across Europe.
APAC
The Asia-Pacific solvent market exhibited diverse pricing trends in Q1 2025, influenced by varying demand-supply dynamics and economic conditions. Isopropyl Alcohol (IPA) prices softened marginally, declining by 0.19%, following an initial rise in January due to steady demand from pharmaceutical and personal care industries. By February, weakened manufacturing activity and excess inventories led to gradual price reductions as suppliers aimed to clear stocks amidst muted industrial demand.
The C9 solvent market followed a bearish trend, with prices declining by 6.65%. January witnessed a brief increase due to tight supply and higher feedstock costs; however, falling naphtha and crude oil prices, coupled with balanced supply-demand dynamics, reversed the trend. In March, surplus inventories and subdued end-user consumption drove further declines.
In contrast, the C10 solvent market rose by 2.11%, buoyed by robust demand from the automotive and paints sectors. Prices peaked in January due to supply constraints and high feedstock costs but stabilized at elevated levels towards March. Strong automotive production and stable downstream demand sustained the bullish trend.
Overall, the APAC solvent market reflected mixed dynamics, with IPA and C9 solvents facing downward pressure while C10 solvents exhibited resilience, supported by consistent end-use sector performance.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American chemical market exhibited mixed trends, influenced by supply-demand dynamics, logistical disruptions, and fluctuating crude oil prices. The toluene market remained stable, with prices steady due to sufficient stockpiles and declining production costs, though labor strikes caused logistical delays. The acetone market saw a bearish trend, with prices declining amid stable production costs and moderate demand, despite minor supply chain disruptions. Isopropyl Alcohol (IPA) prices dropped consistently, driven by weak demand from the solvents industry, excess inventory, and aggressive pricing strategies.
Conversely, Hydrochloric Acid (HCl) prices surged by 3.0%, fueled by supply chain disruptions and rising production costs. The methanol market experienced sharp price increases due to strong demand from acetic acid and dimethyl amine sectors, coupled with supply constraints from production outages. N-Propanol prices moderated, reflecting stable supply and cautious demand. The caustic soda market saw steady price increases, supported by robust demand.
The Iso-Butanol market remained bearish, due to oversupply and weak demand. C9 and C10 solvents experienced mixed trends, with prices initially stable and, followed by mid-quarter increases due to crude oil volatility and logistical disruptions, before softening at the quarter’s end. Overall, the Q3 highlighted a mix of stability, decline, and growth across North American chemical markets, with solvents playing a key role in industrial applications.
Europe
In Q4 2024, the European chemical market faced mixed trends, with solvents playing a pivotal role across industries. Toluene prices declined due to weak demand, coupled with oversupply and geopolitical uncertainties. Acetone prices were pressured by reduced phenol production, impacting its availability, while sluggish demand from solvents and adhesives kept prices subdued. Isopropyl Alcohol (IPA) saw sustained price declines due to weak downstream demand and improved raw material availability. Hydrogen peroxide prices fell driven by oversupply and weak demand from downstream sectors. Hydrochloric Acid (HCl) prices rose due to tight supply and logistical challenges, despite moderate demand from downstream industries. Methanol prices surged amid supply constraints and rising natural gas costs, with strong demand from formaldehyde and downstream applications. Caustic soda prices declined marginally, impacted by oversupply and weak demand. Iso-Butanol depreciated due to low demand, while C9 and C10 solvents faced mixed trends, with prices softening due to weak solvent demand and logistical disruptions. Overall, solvent markets reflected broader industrial challenges, including oversupply, weak demand, and logistical constraints.
APAC
In Q4 2024, the APAC chemical market exhibited mixed trends, with solvents playing a critical role across industries. Toluene prices declined in China and South Korea due to weak demand from TDI, polyurethane, and coatings sectors, alongside stable supply and logistical challenges. Acetone prices in South Korea fell due to reduced demand from MMA and aromatics, coupled with lower raw material costs. Isopropyl Alcohol (IPA) prices fluctuated, with strong demand in October but a downturn in November due to weak solvent demand. Hydrogen peroxide prices dropped in Japan, driven by oversupply and weak demand from textiles and cleaning sectors. Hydrochloric Acid (HCl) prices rose in Japan due to tight supply and strong demand. Methanol prices declined due to weak demand from formaldehyde and MTBE sectors, alongside oversupply. N-Propanol prices showed mixed trends, with China seeing a rise due to robust demand, while South Korea experienced a decline. Caustic soda prices rose in China due to supply constraints and strong demand. Iso-Butanol prices increased by 6% due to supply disruptions and maintenance turnarounds. C9 and C10 solvents faced weak demand, with prices softening due to oversupply and declining crude oil prices. Overall, solvent markets reflected broader industrial challenges, including weak demand, oversupply, and logistical disruptions.
