Salicylic acid prices in Germany fell sharply in June 2025 due to oversupply, cautious downstream buying, and mid-year inventory clearance by distributors. Despite persistent port congestion in Northern Europe, delayed implementation of Peak Season Surcharges eased near-term freight concerns, reducing urgency for restocking. Ample inventories, especially among pharmaceutical and cosmetic manufacturers, further dampened spot demand. Buyers opted to rotate existing stocks and wait out the market, reinforcing a bearish pricing trend. However, with surcharges expected to begin in July, prices may face upward pressure in the coming weeks.
Salicylic acid prices in Germany fell strongly in June 2025, due to a convergence of supply overhangs, subdued procurement policies, and strategically timed mid-year clearances. The market softened, supported by high inventories and the guarded attitude of downstream Salicylic acid buyers, who hesitated to place new orders. In spite of ongoing Northern European port congestions, carriers delayed the imposition of Peak Season Surcharges (PSS) further relieving pressure on near-term import costs and establishing a dulled pricing atmosphere.
During the month, supply of Salicylic acid was generously adequate. Most German importers and traders had built significant inventory stocks in the earlier months despite fears about freight volatility. But as those fears occurred, even briefly, and no resultant supply risk emerged immediately, the majority of participants were not eager to rush again to restocking by buying spot Salicylic acid. This change provided participants along the supply chain—cosmetic and pharmaceutical manufacturers—to halt temporarily buying spot Salicylic acid and invest resources instead in in-house inventory rotation.
This decrease in transactional volume was also followed by quarterly cycle patterns of inventory. Distributors would clear out existing older inventories of Salicylic acid towards the end of the second quarter. This is standard procedure designed to maximize warehouse storage room and provide clearance space for new material procurement targeted toward projected late-year demand. The strategy also factored in seasonal consumption patterns that included a deceleration occurring in the European market over the upcoming holidays season as well as after Q4 planning cycles.
Logistically, shipping routes in North Europe were anything but smooth. Major ports such as Hamburg, Bremerhaven, and Rotterdam were still clogged with high yard utilization as well as vessel delays. But in a turn-around of events, a number of carriers postponed rollout of PSS until July. Even though this measure did not address the bottom-level logistical issues, it did setback freight rate increases in June on the spot. Importers were thus not forced to rush to buy forward of an imminent price hike, which, during past cycles, had triggered panic buying as well as temporary inflationary price spikes.
Rather, consumers preferred to hold off and watch. With freight rates now supported and with no new drivers of near-term supply disruption, the preference was to take a back seat and watch the changing logistics landscape unfold instead of rushing into aggressive forward booking in the here and now. This reduced Salicylic acid prices from pressures throughout the month, supported in turn by prevailing bearish sentiment within the demand environment.
Industry-specific demand, pharmaceutical and healthcare industries' demand, traditional powerhouse strongholds for Salicylic acid, was equally conservative. The majority of the buyers were in a position to have enough Salicylic acid stock in their possession to meet their short-run production requirements and, with no pressure along the supply chain, eschewed holding too much in an unstable shipping regime. This was combined with the lagged PSS and amply comfortable local inventory levels as being instrumental in the lower higher price trend.
In the near term, July might be a turning point for Germany's Salicylic acid business. As the Peak Season Surcharges, delayed earlier, are reportedly to take effect, shipping expense should increase, potentially pushing the landed cost of imports higher. This change might trigger another buying spurt, particularly as buyers will want to purchase Salicylic acid before other logistics issues occur. Consequently, Salicylic acid prices, following the easing in June, may again be subject to upward pressure.
