In November 2025, US H-Acid prices were down slightly by 1% (CFR-Texas), pressured by a reduction in Chinese export prices to FOB-Shanghai. Reduced production costs because of decline in liquid caustic soda and 20-25% freight reductions on Transpacific routes – Shanghai-Los Angeles at USD 2,172/FEU – supported affordability. Year-end destocking coupled with fragile downstream demand amplified the fall; polyester weaving rates remained at 50-53% and textile dyes offtake dropped due to 30% tariffs. Chinese supply stabilized operating rates and enabled steady (not volatile) imports. Downstream mills were buying just-in-time, giving buying power to buyers. Softness may continue in December, although tariff risks might lead to restocking in the first quarter.
Key Highlights
The U.S. H-Acid prices were marginally lower 1% in November 2025, (CFR-Texas). This is the result of a falling Ex-works (domestic) prices in Chinese yuan from major supplier China, the steeply declining ocean freight rates on the transpacific route, and the seasonal destocking by end users at the year-end. Added to these pressures was weak demand from polyester and textile dye producers, as well as a slight decrease in the domestic prices of caustic soda in China, which lowered production costs for suppliers.
Spot commodity prices fell in November 2025 in China, the global H-Acid production hub, data from ChemAnalysts showed. This fall was caused by the abundant post China Festival inventories and the fall in raw material costs, with the price of liquid caustic soda, an important raw material in the production of H-Acid, decreasing in the market of East China. "Feedstock caustic soda is facing oversupply and prices have retreated in the near term, a direct positive for H-acid producers.” This relief in costs, enabled Chinese producers to transfer savings to buyers in the U.S., reducing the landed costs of H-Acid.
Rates on the Transpacific Headhaul saw month-on-month reductions of 20-25% in November. The spot rate for shipping a 40-foot container from Shanghai to Los Angeles have declined from USD 2,647 to USD 2,172, while for Shanghai-New York, it dropped from USD 3,837 to USD 2,922/FEU. Carriers' aggressive blank sailings in October are releasing a wave of space into the market, pushing down rates as the volume of holiday shipments start to dwindle. These savings had an immediate impact on H-Acid's overall import cost, which in turn allowed the U.S. distributors to secure deeper discounting.
On the supply side, U.S. polyester consumption remained stable; spinning rates in such centred regions as the Carolinas were around the 50-53% mark, according to industry observers. The American Apparel & Footwear Association noted a 2.1% YoY decline in apparel imports, citing year-end destocking. Mills producing polyester yarn, which are subjected to 30% tariffs on Chinese variants, turned to ultra-conservative "just-in-time" buying, purchases of H-Acid were adjusted to the bare minimum and went against buying for speculative stockpiling. Demand for textiles dyes was also weaker, with disappearance of U.S. sulphur and reactive dye soft.
Looking ahead, ChemAnalysts suggest December 2025 H-Acid prices may continue to soften on the back of low freight and if demand does not pick up due to holiday retail.
