For the Quarter Ending September 2025
North America
• In United States, the Avobenzone Price Index rose quarter-over-quarter in Q3 2025, driven by strong retail sales and rising input costs.
• Avobenzone production costs increased due to a 2.6% year-over-year rise in Producer Price Index in August 2025 and firming US benzene prices.
• Demand for Avobenzone strengthened, supported by a 5.42% year-over-year increase in retail sales in September 2025.
• The Avobenzone demand outlook is mixed, with strong beauty sales offset by declining consumer confidence to 94.2 in September 2025.
• Chemical manufacturing raw material inventories contracted in Q3 2025, indicating tighter supply for Avobenzone precursors.
• US industrial production saw a marginal 0.1% year-over-year increase in September 2025, suggesting slow growth in downstream sectors.
• Rising freight and logistics expenses marginally compressed producer margins for Avobenzone in Q3 2025.
• Domestic benzene supply remained tight in Q3 2025, while naphtha feedstock costs experienced a mild decline.
• The Avobenzone Price Index is expected to remain firm, influenced by persistent inflationary pressures (Consumer Price Index up 3% YoY in September 2025).
• Overall chemical inventories experienced accelerating destocking in Q3 2025, contributing to upward price pressure for Avobenzone.
Why did the price of Avobenzone change in September 2025 in North America?
• Strong consumer spending, evidenced by a 5.42% year-over-year rise in retail sales, bolstered Avobenzone demand.
• Increased production costs, including a 2.6% year-over-year Producer Price Index increase in August 2025, pushed Avobenzone prices higher.
• Contracting chemical inventories and tight domestic benzene supply in Q3 2025 contributed to upward price pressure.
APAC
• In China, the Avobenzone Price Index fell quarter-over-quarter, influenced by a 2.3% Producer Price Index decline in September 2025.
• Avobenzone production costs trended lower, reflecting the year-on-year Producer Price Index decrease in September 2025.
• Avobenzone demand was mixed; retail sales increased 3% year-on-year, but Consumer Price Index declined 0.3% in September 2025.
• Consumer confidence at 89.6 and a 5.2% unemployment rate in September 2025 indicated cautious consumer spending.
• Avobenzone demand outlook benefited from strengthened cosmetics retail sales and surging online beauty sales in July 2025.
• Naphtha feedstock costs provided a floor for benzene prices in August 2025, impacting Avobenzone production.
• Chinese refiners' toluene inventories built up in Q3 2025, suggesting ample supply for Avobenzone precursors.
• Chemical overcapacity from China persisted in Q3 2025, contributing to downward pressure on Avobenzone prices.
• Industrial production expanded 6.5% year-on-year in September 2025, supporting overall chemical supply.
Why did the price of Avobenzone change in September 2025 in APAC?
• Producer Price Index declined 2.3% year-on-year in September 2025, reducing production costs.
• Consumer Confidence Index at 89.6 in September 2025 indicated pessimism, dampening demand.
• Manufacturing Index was contracting in September 2025, reflecting industrial slowdown.
Europe
• In Germany, the Avobenzone Price Index remained stable to slightly fell in Q3 2025, driven by weakened overall chemical demand.
• Avobenzone price forecast indicates continued pressure due to subdued consumer sentiment and contracting manufacturing activity in Q3 2025.
• Avobenzone production costs saw mixed trends, with lower producer prices (-1.7% Producer Price Index, Sep 2025) and rebounding naphtha costs.
• Avobenzone demand outlook remains challenged by weakened overall chemical demand and a 2.4% Consumer Price Index increase in September 2025.
• Strengthening crude oil values and high European natural gas prices in Q3 2025 supported Avobenzone feedstock costs.
• Reduced purchasing activity and low order backlogs in the German chemical industry impacted Avobenzone inventory levels.
• Weakened German chemical exports and declining export demand in Q3 2025 negatively affected Avobenzone trade flows.
• Stable unemployment (6.3%) and modest retail sales growth (0.2%) in September 2025 offered limited Avobenzone demand support.
Why did the price of Avobenzone change in September 2025 in Europe?
• Weakened chemical demand and a 2.4% Consumer Price Index increase in September 2025 dampened Avobenzone demand.
• Lower producer prices (-1.7% Producer Price Index, Sep 2025) were partially offset by rising feedstock costs.
• Contracting Manufacturing Index and 1% industrial production decline in September 2025 influenced market sentiment.
