For the Quarter Ending June 2025
North America
In Q2 2025, North American pharmaceutical solvents markets showed mixed trends, shaped by weak industrial demand, cost movements, and shifting export flows. Ethyl Acetate and Acetone both softened as coatings, adhesives, and automotive demand remained sluggish, with prices under pressure from oversupply and limited restocking. Acetic Acid stayed steady, supported by balanced U.S. output and steady export flows, while future tightness was anticipated from Gulf Coast maintenance. Propylene Glycol declined early in the quarter on excess stocks and weak exports but recovered slightly in June on firmer trading sentiment. Isopropyl Alcohol diverged from the broader weakness, posting steady gains on strong pharmaceutical, hygiene, and export-driven demand amid constrained supply and rising feedstock costs. Chloroform edged higher on firm pharma and refrigerant demand, aided by tighter chlor-alkali output and rising exports. Toluene was largely range-bound, with steady refinery throughput offsetting muted solvent and gasoline blending demand. MEK tracked sideways-to-slightly higher, pressured by subdued coatings and construction activity but supported at quarter-end by rising butanol costs and tariff-driven trade shifts. Overall, Q2 reflected a solvent market split between oversupplied commodities weighed down by weak industrial offtake and selective products like Isopropyl Alcohol and Chloroform that saw firm pricing from resilient pharma-linked demand and tighter supply fundamentals.
Europe
In Q2 2025, the European pharmaceutical solvents market showed a highly mixed performance, balancing cost-driven pressures with uneven downstream demand. Ethyl Acetate edged higher, supported by tighter Asian export flows and elevated freight surcharges, though regional coatings and adhesives demand stayed flat, capping upside. Acetic Acid was largely stable, as steady Belgian imports and flat methanol costs offset eurozone demand weakness, with only slight upward pressure from Chinese freight hikes. Acetone, by contrast, weakened throughout the quarter, hit by sluggish automotive and coatings demand, reduced exports due to U.S. tariffs, and oversupply from underutilized phenol-acetone units, despite some cost relief from softer benzene and cumene. Propylene Glycol firmed in April–May on higher propylene oxide costs and strong export interest but stabilized in June as cautious restocking balanced steady pharma and food demand. Isopropyl Alcohol softened slightly overall, with stable pharma and personal care consumption offset by destocking and rising inventories, though exports to Latin America and Asia offered some support. Chloroform bucked the trend, rising over 12% on strong pharmaceutical and agrochemical demand, compounded by constrained chlor-alkali output and high energy costs. Toluene remained depressed amid persistently weak coatings, resin, and automotive consumption, with only crude-linked fluctuations providing movement. MEK moved narrowly within a weak range, constrained by sluggish paints and adhesives demand, port congestion, and high energy costs, with only marginal support from Shell’s Pernis shutdown. Overall, Q2 reflected a solvent market split: pharma-linked materials like Chloroform, Propylene Glycol, and Ethyl Acetate saw resilience, while construction- and automotive-linked solvents such as Acetone, MEK, and Toluene struggled under weak demand and structural oversupply.
APAC
In Q2 2025, the Asian pharmaceutical solvents market trended largely bearish, weighed down by weak downstream demand, oversupply, and sluggish export flows, though some products managed resilience. Ethyl Acetate prices fell sharply due to muted coatings demand and reduced orders from India and Southeast Asia, with producers cutting operating rates to manage inventories. Acetic Acid mirrored this weakness, slipping to multi-year lows despite tight domestic availability, as overseas buyers resisted higher offers and Indian demand remained subdued. Acetone prices stayed mostly flat-to-soft, as balanced supply, weak automotive and coatings demand, and the closure of downstream MDI plants kept sentiment neutral despite firm upstream benzene costs. Propylene Glycol was an exception, recording steady gains throughout the quarter on sustained demand from food, pharmaceutical, and personal care sectors, supported by active restocking and stable upstream supply. In contrast, Isopropyl Alcohol declined on excess inventories, weak pharmaceutical and industrial demand, and aggressive export competition, though intermittent plant shutdowns provided only brief support. Chloroform saw the steepest drop, losing over 13% on high run rates, falling methanol costs, and poor downstream pull from both pharma and agrochemicals, which left the market oversupplied. Toluene and MEK both weakened, pressured by sluggish aromatics demand, muted real estate and construction-linked coatings consumption, and persistently soft overseas orders, though MEK stabilized briefly in May before sliding again on high inventories. Overall, Q2 highlighted a bifurcated market where structurally supported molecules like Propylene Glycol resisted broader weakness, but the majority of solvents faced persistent bearishness due to oversupply, fragile end-use demand, and cautious procurement across Asia.
For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. pharmaceutical solvents market displayed varied pricing trends, shaped by supply-demand fluctuations, feedstock dynamics, and broader economic conditions. Ethyl Acetate prices averaged USD 1,534/MT FOB USGC, reflecting a 2.4% increase from Q4 2024 but a 7.8% decline year-on-year. Prices peaked in February amid tight supply from Eastman Chemical shutdowns and strong early-quarter demand across coatings, adhesives, and pharma sectors. Acetic Acid prices in the U.S. declined 13.3% quarter-on-quarter and 4.9% year-on-year to an average of USD 625/MT FOB Texas, due to sluggish downstream demand and ample inventories, particularly in February. Conversely, in Saudi Arabia, Acetic Acid prices rose marginally by 2.1% quarter-on-quarter to USD 392/MT, supported by steady domestic demand and Vision 2030 infrastructure momentum. Propylene Glycol in the U.S. saw steady price increases throughout the quarter amid consistent demand from pharmaceuticals and manufacturing, though the rise was moderate with no sharp spikes. Isopropyl Alcohol (IPA) experienced firm upward momentum due to robust pharmaceutical, healthcare, and cleaning demand, especially by March, with prices supported by seasonal use and export interest despite feedstock relief.
Chloroform prices remained largely stable, falling just 1.7% from early January levels despite a mid-January dip, as consistent demand from pharmaceutical applications maintained balance. Toluene showed a declining trend by quarter-end, pressured by weak crude and naphtha costs, subdued demand from TDI and coatings sectors, and global economic uncertainty. Methyl Ethyl Ketone (MEK) experienced a weak start to Q1 with January declines due to construction slowdowns and import competition, but prices recovered slightly in February and March, ending at USD 1,400/MT CFR Texas.
Overall, Q1 2025 presented a mixed landscape for pharmaceutical solvents, with some segments experiencing price resilience amid sector-specific demand, while others faced cost-driven or demand-related headwinds.
Europe
In Q1 2025, pharmaceutical solvents in Europe displayed a mixed pricing landscape shaped by varied supply-demand dynamics and macroeconomic headwinds. Isopropyl Alcohol (IPA) led the upward trend, rising by 8.76% quarter-on-quarter due to robust pharmaceutical and cleaning demand, supply constraints, and logistics disruptions. Ethyl Acetate also climbed 3.93%, supported by supply-side tightness and import cost inflation, despite weak demand from adhesives and coatings. Propylene Glycol registered a 3.07% price increase, driven by firm demand in pharmaceutical and cosmetic sectors and cost pass-through from rising energy prices. Conversely, several key solvents saw marked declines. Acetic Acid prices fell significantly by 15.21% amid weak downstream demand and surplus American imports, while Acetone dropped 20.94% due to stable supply, sluggish restocking, and limited industrial activity. Chloroform was relatively stable, posting a marginal 0.64% decline, with steady pharma demand cushioning against cost-driven volatility. Toluene dipped 0.43%, reflecting weak fundamentals and energy-linked instability. Methyl Ethyl Ketone (MEK) declined 5.14% due to soft demand, energy cost volatility, and cautious downstream procurement. Overall, the quarter reflected moderate strength in select pharma-linked solvents like IPA and Propylene Glycol, while broader market caution and weak construction-linked sectors pressured others.
APAC
During Q1 2025, the pharmaceutical solvents market in the Asia-Pacific region showed a generally stable to moderately positive pricing trend across most key products. Ethyl Acetate prices in China edged up by 1.13% quarter-on-quarter, driven by temporary production cuts and firm downstream demand from pharmaceuticals and coatings, despite subdued feedstock support. Acetic Acid prices also saw a modest 1.14% increase, supported by plant shutdowns in January, although oversupply and weak downstream demand limited further gains. Acetone prices declined by 2.48%, as weak demand from pharmaceuticals and other downstream sectors outweighed stable feedstock costs and restrained pricing strategies. Propylene Glycol experienced a 3.69% quarterly price rise, underpinned by strong pharmaceutical and personal care demand, and tight supply conditions.
Isopropyl Alcohol (IPA) in the region showed a marginal 0.19% decline, reflecting an initial price rise in January that was later offset by weakening manufacturing activity and reduced demand from chemical processing sectors. In contrast, Chloroform prices surged by 15.93%, largely due to early-quarter cost increases in methanol and natural gas, and steady procurement from the pharmaceutical and agrochemical sectors. Toluene prices declined 4.24%, impacted by bearish macroeconomic sentiment, low demand, and falling crude oil and naphtha feedstock prices. Meanwhile, Methyl Ethyl Ketone (MEK) prices rose by 2.74% despite mid-quarter weakness, supported by strong early-quarter demand and export performance, particularly from automotive and coatings sectors. Overall, Q1 2025 exhibited mixed market dynamics with stronger pricing performance in key solvents like Chloroform and Propylene Glycol, while others remained under pressure from soft demand and supply surpluses.
For the Quarter Ending December 2024
North America
The North American pharmaceutical solvents market demonstrated diverse price movements during Q4 2024, with certain commodities experiencing notable appreciation while others witnessed significant depreciation. In the positive spectrum, Chloroform exhibited robust growth, recording a 1.7% increase in Q4 and a 3.15% appreciation on a quarterly basis. This upward trajectory was supported by steady demand dynamics, feedstock market conditions, and strategic inventory management. The market was further influenced by EPA's proposed mitigation measures regarding pesticides, potentially affecting Chloroform demand patterns. Additionally, the feedstock Methanol market experienced supply tightness due to production outages in both U.S. and European markets, leading analysts to revise price forecasts upward through 2025.
Crude Glycerine emerged as another strong performer, achieving approximately 20% increase in Q4 quarter-over-quarter. This appreciation was primarily attributed to supply constraints, particularly from Canada, where labour strikes at major ports including Vancouver and Prince Rupert significantly disrupted import operations. The situation was further compounded by rising crude oil prices following OPEC+'s decision to delay planned output increases until January.
Conversely, several solvents experienced substantial price corrections. Methyl Ethyl Ketone (MEK) recorded a significant decline of over 10% in Q4 2024, pressured by weak cost support, competitive import prices from Asia and Europe, and subdued demand from downstream paint and coating sectors. Similarly, Toluene prices plummeted by more than 11% due to decreased product inquiries and order volumes. The market was further impacted by port operation concerns, potential labor strikes, and limited domestic production due to feedstock constraints.
The U.S. pharmaceutical solvents market in Q4 2024 exhibited a clear bifurcation, with commodities like Chloroform and Glycerine showing resilience while MEK, Acetone and Toluene faced significant downward pressure. The market dynamics were heavily influenced by a combination of factors including supply chain disruptions, feedstock availability, port operations, and downstream demand patterns. The divergent price trends highlight the complex interplay of domestic and international market forces shaping the pharmaceutical solvents landscape.
APAC
The Chinese pharmaceutical solvents market exhibited a mixed pricing landscape during Q4 2024, characterized by notable fluctuations across various commodities. Propylene Glycol (USP) emerged as a strong performer, recording over 4% appreciation driven by robust domestic demand, pre-holiday inventory building, and global supply chain disruptions including Middle East conflicts and Red Sea disturbances. Similarly, Crude Glycerol demonstrated significant strength with a more than 10% surge, while refined glycerine increased by over 5%. Acetic acid and Ethyl acetate also showed positive momentum with 2% and 1% growth respectively.
However, several key solvents experienced substantial price declines. Chloroform witnessed a decline exceeding 9% due to weak demand, high inventory levels, and softening feedstock prices, particularly in methanol. Acetone faced significant pressure, dropping more than 7% and 14.54% quarterly, influenced by regional phenol oversupply and competitive imports. The Chinese solvents market demonstrated significant volatility in Q4 2024, with clear divergence between strengthening and weakening commodities, primarily influenced by domestic demand patterns, global supply chain dynamics, and currency fluctuations.
Europe
The European pharmaceutical solvents market, with a specific focus on Germany, exhibited significant price volatility during Q4 2024. The market was characterized by notable declines across several key solvents, while some products showed remarkable strength. Among the declining commodities, Acetone experienced the most substantial drop, plummeting by more than 23% throughout the quarter. This sharp decline was primarily attributed to oversupply conditions coupled with subdued demand in the region. Ethyl Acetate also faced considerable downward pressure, recording a 9% decrease during the quarter 4 of 2024. Other solvents showing negative price movements included Isopropyl Alcohol (IPA) and Chloroform, which declined by 4% and 0.51% respectively.
In contrast, certain solvents demonstrated remarkable resilience and price appreciation. Crude Glycerine emerged as the strongest performer in the German market, surging by more than 9% during Q4. Similarly, Propylene Glycol (pharma grade) showed positive momentum with a 4% increase in prices.
This divergent price trend in the German market reflects the complex interplay of various factors affecting the pharmaceutical solvents industry. The significant price corrections in products like Acetone and Ethyl Acetate suggest potential market rebalancing, while the appreciation in Glycerine and Propylene Glycol indicates sustained demand and possibly supply constraints in these segments. The variations in price movements across different solvents highlight the market's sensitivity to supply-demand dynamics and underscore the importance of monitoring individual product segments within the broader pharmaceutical solvents market.
