For the Quarter Ending June 2025
North America
• Alpha Olefin Sulphonate AOS prices in the USA remained firm in Q2 2025, driven by steady demand from personal care and I&I (Industrial & Institutional) cleaning sectors.
• In April, improved domestic surfactant production and moderate upstream costs supported balanced market sentiment.
• May brought moderate price gains due to seasonal demand increases and tighter inventories from Midwest suppliers.
• June showed stable pricing as detergent formulators ramped up pre-summer production and institutional contracts renewed.
• Imports from Asia, especially South Korea and Singapore, remained consistent, though high freight rates slightly pressured margins.
Why did the price of AOS change in July 2025 in North America?
• Steady demand from I&I cleaning, especially in hospitality and healthcare sectors.
• Seasonal homecare consumption peaked in late spring, driving bulk orders.
• Supply stayed tight in Midwest hubs due to plant turnarounds and cautious stock replenishment.
• Import pricing remained sensitive to Asia–Pacific shipping lane congestion and fuel surcharges.
Asia-Pacific
• AOS prices in India rose by 2.15% in Q2 2025, settling at INR 149,000/MT.
• April saw strong FMCG-led demand growth, especially in rural regions, with upstream costs slightly easing.
• May experienced tighter supply, delayed shipments, and higher global freight, which pushed prices up.
• June posted a 0.68% price increase as rural demand and institutional consumption remained firm.
• Imports from the USA and Singapore arrived smoothly, and domestic logistics remained congestion-free throughout the quarter.
Why did the price of AOS change in July 2025 in Asia-Pacific?
• Rural demand outpaced urban growth, especially in personal care and home cleaning segments.
• Disrupted transport issues and freight inflation.
• Steady import flows and disciplined inventory practices in June maintained availability.
• Partnerships with e-commerce platforms helped expand Tier 2–3 city penetration for AOS-based products.
Europe
• AOS prices in Germany edged higher in Q2 2025, supported by firm home and personal care demand and constrained local supply.
• April saw moderate price increases due to sluggish recovery in surfactant output amid high energy prices.
• May demand rose in the personal care segment, but freight costs from Asia added pressure.
• In June, institutional cleaning demand increased across healthcare and education, helping sustain overall price levels.
• Import reliance on Southeast Asian and U.S. suppliers continued, with minor delays from Hamburg port congestion.
Why did the price of AOS change in July 2025 in Europe?
• Home and personal care segments remained primary demand drivers.
• Local surfactant production was challenged by feedstock price volatility and high utility costs.
• Port congestion and inland transport disruptions slowed the replenishment of stocks.
• Summer contract renewals with industrial clients supported demand resilience.
For the Quarter Ending March 2025
North America
In Q1 2025, the Alpha Olefin Sulfonate (AOS) market in North America experienced a softening in prices during January and February. This was largely due to subdued demand from key downstream sectors such as detergent and cleaning agents, which typically see a seasonal slowdown following the holiday period. Cooler weather further dampened consumption patterns, while healthy inventory levels and ample supply across the region prevented any significant upward movement in prices.
By March, the market began to show signs of stabilization. Demand recovered modestly, driven by increased purchasing from the detergent segments. Export markets also remained stable, supporting the overall market balance. Buyers showed increased interest amid speculation of potential cost increases related to new trade policies and inflationary pressures. Despite this, supply levels remained sufficient, helping to prevent any sharp price fluctuations.
While March offered some relief, the outlook remained cautious. Ongoing concerns over economic stability, inflation, and potential shifts in trade policy continued to influence buying behavior. Market participants maintained a wait-and-see approach, focusing on managing inventories while monitoring evolving supply chain conditions heading into the next quarter.
APAC
In Q1 2025, Alpha Olefin Sulfonate (AOS) prices in the Asia-Pacific (APAC) region declined by 4% compared to Q4 2024. Early in the quarter, prices fell due to seasonal factors such as reduced manufacturing ahead of the Lunar New Year and subdued demand from the detergent and surfactant sectors. Manufacturing contraction, high inventories, and cautious buying further weighed on the market. Despite stable production and effective supply chain operations, weak demand drove the bearish trend. Mid-quarter, prices began to recover as manufacturing activity resumed and downstream sectors like detergents entered their spring production phase. This rebound was supported by improved logistics, steady raw material availability, and stronger retail sales. However, concerns about inflation and cautious restocking tempered the momentum. In March, prices surged sharply amid tightening supply and strong demand from Asia, the Middle East, and the U.S. Domestic sentiment improved due to supportive policies, including tax cuts and reduced import duties. Seasonal hygiene needs and rising consumer confidence also contributed to the upward trend. Despite easing logistics costs, supply limitations and global trade uncertainties constrained production. By quarter-end, AOS Ex-Delhi (India) was priced at USD 1734/MT.
Europe
In Q1 2025, the European Alpha Olefin Sulfonate (AOS) market showed signs of recovery following a subdued close to the previous year. January saw prices under pressure due to weak demand, high inventories, and seasonal slowdowns in consumption across detergent and cleaning agent segments. Export activity remained limited, and buyers maintained cautious procurement strategies amid ongoing economic uncertainty. Conditions began to improve in February, supported by a steady rebound in demand from key downstream sectors gained momentum. Supply constraints in some parts of Europe, along with firm raw material and transportation costs, contributed to an upward pricing trend as the quarter progressed. March continued this trajectory, with consistent consumption and logistical challenges, including weather-related disruptions, adding to the complexity of supply dynamics. Inflationary pressures and exchange rate volatility also influenced production and purchasing decisions. By the end of the quarter, AOS prices had firmed, supported by stronger domestic demand and tighter supply. However, market participants remained cautious, anticipating that lingering economic uncertainties and uneven recovery across regions may impact stability heading into Q2.
FAQs
1. What sectors drove AOS demand in Q2 2025?
Rural personal care, institutional cleaning, and household hygiene sectors dominated AOS usage in India, while I&I and hospitality sectors led demand in the USA and Germany.
2. How did rural vs urban consumption trends impact AOS prices in India?
Rural growth surged in Q2, supported by RBI policies and improved e-commerce logistics. Urban demand softened due to monsoon effects.
3. Were there any supply bottlenecks?
Yes, in May. Transportation disruptions and high freight costs tightened supply in India. Germany saw port delays, and the U.S. faced Midwest plant turnarounds.
4. What is the AOS Price Forecast for Q3 2025?
If rural demand holds and logistics remain smooth, prices in India may stabilize. In the U.S. and Germany, industrial demand and import cost pressures will shape Q3 trends.
