The Asian Propionic Acid market price stayed at a low stable level in the early December 2025 mainly on the back of slow demand, dampened feedstock ethylene price and persistent oversupply. Monthly price movement was still bearish throughout the region, with the decline centered in China amid rising production capacity, high inventory and weak downstream demand.
In China, propionic acid prices extended their month-on-month decline, marking the third consecutive monthly drop. In November, propionic acid prices fell by 6.8% in China. Oversupply remained the dominant factor weighing on the propionic acid market, as domestic production continued to outpace demand.
China primarily exports propionic acid to India, Japan, and Russia. In recent months, export volumes increased by 2.1% as low Chinese prices attracted overseas buyers. While this uptick offered slight relief to producers, export growth remained insufficient to lift overall price levels or ease the domestic oversupply burden.
Supply remained ample across Chinese facilities, with plants maintaining steady operating rates and reporting no major shutdowns. However, persistently high factory inventories strained producer liquidity and weakened confidence in sustaining any form of price stability.
Feedstock ethylene costs continued to decline, supported by lower global crude oil prices. Crude markets softened due to easing geopolitical tensions in the Middle East, tariff-related uncertainty, and rising U.S. oil inventories. In November, Brent crude dropped by 1.5% and WTI declined by 3.2%, further reducing production costs for propionic acid.
Expectations of long-term energy oversupply strengthened after OPEC+ confirmed a planned April 2025 oil output increase of 138,000 barrels per day. Reduced crude oil cost support further pressured ethylene and, consequently, propionic acid prices in China, reinforcing the downward trend throughout the month.
Meanwhile, China’s rapid petrochemical expansion is another major contributor to the imbalance. With seven large petrochemical hubs built in the last decade, China has surpassed the United States as the world’s leading ethylene producer.
Demand from downstream was still weak, providing no positive momentum for price recovery. Buyers curtailed their purchases in the light of high stock and weak sentiment. The demand from winter holiday was weak for the food preservatives industry, the herbicide and chemical intermediates also held the conservative purchase in the slow production.
According to ChemAnalyst, propionic acid prices are likely to come down more in the next few weeks. End-of-the-year destocking is likely to accelerate as traders and producers are trying to get rid off excess stocks before the financial close, putting extra pressure on the bearish side of propionic acid. Downstream buyers are expected to delay procurement in anticipation of further price drops, reinforcing soft market momentum and making a near-term recovery unlikely.
