For the Quarter Ending June 2025
North America
• Prices of Benzoic acid experienced a volatile Q2 2025, which began with April's (-9.82%) and May's (-9.53%) decline and followed up with a sharp recovery in June (+16.88%) to USD 1087/ton. Net Quarter over Quarter (QoQ) impact was a moderate rise due to better demand and shortages.
• U.S. spot price of Benzoic acid declined in April and May 2025 because of poor demand following the trade tensions and destocking of inventories.
• It was impacted by the tariffs imposed by the Trump administration on April 4, which resulted in delayed shipments and a 49% drop in container bookings globally, leading to oversupply.
• PMI manufacturing fell below 50, indicating contraction and further weakening demand from food, drug, and cosmetics sectors.
• Pre-year stockpiling inventory overhang suppressed fresh buying during spring.
• In June, prices sharply rebounded by 16.9% driven by surging toluene prices (feedstock), restricted Chinese exports due to labor and utility limits, and robust downstream consumption across food, pharma, and biofuel industries.
• The weaker USD and higher freight costs compounded landed cost increases, pushing prices higher.
• Strong demand outlook persists with growth in pharmaceuticals and food preservation boosts consumption.
• Inflation macro trends aided cost management earlier, but June cost-push inflation reversed that effect.
• The Benzoic acid production cost trend in North America is currently rising due to input cost inflation and logistical constraints.
• Buyers increasingly use forward contracts to hedge against volatility for Q3.
• Overall, a volatile Q2 with sharp price moves due to external trade policies and internal raw material cost shifts confirms the tightrope between oversupply and strong downstream demand in this region.
APAC
• APAC benzoic acid prices declined significantly in April (-8.00%) and May (-13.04%), followed by a moderate increase in June (+5.00%) reaching USD 840/ton, reflecting tight supply and rebounding demand in the latter month.
• Prices in China and wider APAC declined initially due to weakening domestic economy (CPI down 0.1%) and manufacturing contraction (PMI below 50).
• U.S.-China tariff tensions (up to 245%) severely limited exports, leading to surplus inventory and heavy discounting to maintain competitiveness.
• Raw materials, especially toluene and benzene, experienced price dips due to weak crude oil markets and sluggish demand from solvents and petrochemical sectors.
• Logistical improvements at key ports increased throughput but aggravated supply gluts.
• Demand outlook was weak, with food preservatives, plastics, and pharma sectors scaling back due to economic uncertainty and trade disruption.
• In June, a sharp price reversal occurred due to maintenance shutdowns reducing domestic Chinese supply and tight benzene availability.
• Smaller producers increased prices to capitalize on the supply crunch amid escalating geopolitical tensions in the Middle East raising global market volatility.
• Robust downstream demand from pharma, cosmetics, biofuels, and food preservatives sustained price gains despite broader economic deflationary pressure.
• Higher costs of toluene and port congestion further contributed to upward cost trends in June.
• The Benzoic acid price forecast for APAC anticipates continued pressure from tight supply and strong end-use demand, potentially sustaining elevated prices in Q3.
• Export opportunities may remain constrained due to tariffs and freight cost increases, affecting global trade flows.
Europe
• Europe’s benzoic acid prices dipped in April (-5.77%) and May (-2.04%) but rebounded modestly in June (+2.08%) reaching USD 1225/ton, reflecting improving industrial sentiment and supply-demand balance.
• Benzoic acid prices in Europe (Netherlands) declined moderately due to steady manufacturing output, inventory corrections, and robust supply from Asian exports causing global price pressure.
• The Euro's appreciation against the USD improved export competitiveness but encouraged cautious purchasing on expectations of further price corrections.
• Demand was moderate with normalized consumption following earlier stocks accumulation, supported by food preservation, pharmaceuticals, and chemical sectors, but overall subdued.
• Manufacturing and supply remained stable, although rising energy and feedstock costs (toluene linked to crude oil fluctuations) started to exert an upward pressure on production costs.
• Logistics remained efficient with well-integrated European export networks.
• By June, prices rebounded modestly (+2.1%), driven by tighter supply due to capacity constraints and renewed industrial expansion (manufacturing PMI rose to 51.2).
• Demand strengthened from food and pharma sectors, and buyers increasingly locked in forward contracts anticipating further price rises.
• Inflationary pressures eased across most input categories, but sector-specific growth led to firm pricing trends.
• The Benzoic acid production cost trend reflects a balance between energy cost volatility and improved manufacturing efficiency.
• The Benzoic acid demand outlook in Europe is cautiously optimistic with expectations of continued growth in processed foods and pharmaceuticals driving stable price support in Q3.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, Benzoic Acid prices in the U.S. market experienced a mixed trajectory, starting with a bullish trend in January before shifting to a sustained decline through February and March. January witnessed a notable price increase, driven by strong demand from pharmaceutical and food processing sectors, constrained domestic supply, and logistical challenges such as port congestion and labor shortages. Additionally, rising freight costs and extended lead times due to global shipping disruptions pushed import prices higher, prompting buyers to secure shipments at elevated rates. This combination of robust demand and restricted supply supported firm pricing at the start of the quarter.
However, the market shifted direction in February as demand weakened and inventories rose sharply. Preemptive stockpiling ahead of the Lunar New Year and anticipated tariff risks led to an oversupplied market. Improved logistics and declining transpacific freight rates made imports more competitive, pressuring domestic suppliers to reduce prices.
By March, the downtrend continued amid persistent oversupply, subdued downstream activity, and heightened trade policy uncertainty. The weakening U.S. dollar and tariff hikes on Chinese imports discouraged new purchases, while concerns over potential restrictions on Indian pharmaceutical imports further suppressed buying confidence. As a result, the quarter concluded on a bearish note, with prices under pressure from weak demand, elevated inventories, and cautious market sentiment, reversing the early gains observed in January.
Asia Pacific
During the first quarter of 2025, the price trend of Benzoic Acid in China exhibited a mixed trajectory, influenced by shifting demand patterns, seasonal disruptions, and evolving supply-side dynamics. In January, prices rose by approximately 0.99%, supported by strong international purchasing activity as global buyers, particularly from the U.S., accelerated procurement ahead of potential tariff changes. Exporters in China adjusted pricing strategies amid elevated freight costs, logistical delays, and modest increases in raw material expenses, particularly Toluene.
This upward momentum continued into February, with prices increasing by another 0.98%. The Lunar New Year holiday led to temporary factory closures, tightening supply just as downstream sectors such as food, beverage, and pharmaceuticals ramped up post-holiday demand. However, this bullish trend reversed in March, as Benzoic Acid prices fell by 2.91%. The appreciation of the Chinese Yuan and a deflation rate of -0.7% reduced input and inflationary pressures. At the same time, declining raw material costs and improved port logistics enhanced supply chain efficiency. Moreover, a post-holiday focus on inventory liquidation amid subdued consumer demand triggered intensified competition and price reductions.
Overall, the net result for Q1 2025 was a marginal quarterly price decline. The quarter concluded with prices at USD 1,000 per metric ton (MT) of Benzoic Acid, FOB Shanghai showcasing average quarterly decline of 0.31%, underscoring the overall negative pricing environment pervasive throughout the APAC region.
Europe
In Q1 2025, the Benzoic Acid market in the Netherlands exhibited a mixed pricing trend, influenced by shifting supply-demand dynamics, cost pressures, and seasonal factors. January witnessed a controlled price increase, largely driven by strategic procurement ahead of the Lunar New Year in Asia and steady demand from food preservative and industrial users. Buyers aimed to secure volumes early in anticipation of possible supply chain disruptions. Raising raw material costs, particularly for toluene amid tight supply and energy price volatility, added to the upward pricing pressure.
February saw a further price rise, underpinned by surging production costs, strong international demand, and logistical challenges. Environmental regulations and rising energy costs compelled manufacturers to invest in sustainable operations, escalating overall costs. Demand remained robust across the food, pharmaceutical, and cosmetic sectors, while export interest from global markets further tightened local supply, driving higher prices.
However, this bullish trend reversed in March as prices declined due to strong supply availability, weak downstream demand, and elevated inventory levels from prior months. A stronger Euro and reduced logistics costs further enhanced the Netherlands’ export competitiveness, but oversupply prompted aggressive destocking efforts. Overall, the net result for Q1 2025 was a marginal quarterly price decline. The quarter concluded with prices at USD 1,300 per metric ton (MT) of Benzoic Acid, CFR Rotterdam showcasing an average quarterly decline of 1.22%, underscoring the overall negative pricing environment pervasive throughout the region.
For the Quarter Ending December 2024
North America
In Q4 2024, the U.S. Benzoic Acid market faced dynamic price fluctuations shaped by varied market forces. October saw a significant price surge driven by seasonal demand, rising raw material costs, supply chain disruptions, and increased shipping expenses from Asian suppliers. Strategic stockpiling and global supply disruptions, particularly in Ukraine and the Middle East, further exacerbated the upward pricing trend. However, manufacturing challenges, including supply bottlenecks and workforce issues, restrained production efficiency.
November marked a shift as Benzoic Acid prices declined due to inventory reductions, competitive supplier pricing, and stable downstream demand. Improved supply chain conditions and proactive front-loading of cargo eased market pressures. Yet, looming uncertainties over tariff negotiations and cautious end-user purchasing limited growth.
By December, weak demand from pharmaceuticals and robust competition from Chinese imports drove further price reductions. Elevated inventories and destocking efforts intensified competition. Despite stable production levels and export activity, subdued new orders and manufacturing contractions signaled ongoing market pessimism. While employment rose, policy uncertainty and input cost inflation weighed heavily on the sector.
Asia Pacific
The Benzoic Acid market in China faced significant volatility throughout Q4 2024. In October, prices surged due to supply constraints caused by typhoon-induced shipping delays, strong pre-holiday procurement, and growing demand from the pharmaceutical sector. A weakening dollar against the yuan elevated import costs but boosted traders' margins. Despite challenges, China's manufacturing PMI rose to 50.1, signaling recovery supported by government stimulus, though export orders and employment remained weak.
November saw a subtle price decline as strategic destocking and falling raw material (toluene) costs pressured suppliers to lower prices. The manufacturing PMI climbed to 50.3, indicating resilience, but weaker exports and declining imports underscored demand challenges. Buyers capitalized on lower prices, adopting cautious procurement strategies.
In December, the market faced continued downward pressure. Manufacturing PMI dipped to 50.1, reflecting stagnant domestic demand, weak foreign orders, and subdued confidence. Falling input costs and cautious inventory management compounded the bearish sentiment. Persistent weak demand and limited economic recovery suggest ongoing price pressures for Benzoic Acid and its downstream sectors. The quarter concluded with prices at USD 1,010 per metric ton (MT) of Benzoic Acid, FOB Shanghai showcasing average quarterly decline of 0.33%, underscoring the overall negative pricing environment pervasive throughout the APAC region.
Europe
In Q4 2024, the Netherlands, a key producer and exporter of Benzoic Acid, experienced fluctuating market conditions shaped by global economic challenges and supply chain disruptions. Initially, Benzoic Acid prices surged due to constrained supply, rising input costs, and shifting demand patterns. Exporters capitalized on limited inventories and arbitrage opportunities to adjust domestic pricing, while elevated import costs further strained sectors like pharmaceuticals.
However, by November, weakening demand and lower production costs reversed the trend, driving prices down. Oversupply from pre-holiday stockpiling compounded bearish market sentiment, with suppliers focusing on inventory normalization.
The broader Dutch manufacturing sector faced its most challenging period of the year, as reflected in the NEVI Manufacturing PMI, which dropped from 47.0 in October to 46.6 in November. Shrinking new orders, sharp declines in export demand, and rising input costs intensified financial pressures. Despite modest optimism for 2025, firms scaled back growth ambitions. Meanwhile, the European Toluene market grappled with falling crude oil prices and weak industrial demand, highlighting persistent challenges in balancing supply and demand dynamics across key markets.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American Benzoic Acid market experienced a steady decline in prices, driven primarily by persistent oversupply and weakened demand dynamics. An imbalance between supply and demand was evident, with a surplus of Benzoic Acid leading to sluggish consumption from downstream industries. Factors such as reduced demand from neighboring regions, subdued trading environments, and overall weak international demand contributed to this downward price trend.
Manufacturers responded to the diminished demand by scaling back production levels, resulting in the first contraction in supplier lead times in three months. End-users adopted a cautious purchasing strategy, focusing on need-based buying rather than proactive inventory replenishment. This approach further dampened market activity and interest, exacerbating the weak demand environment.
In the USA, which saw the most significant price fluctuations, the quarter experienced a notable 6% decrease from the previous quarter. While the first half of the quarter reflected a slight decline of 1%, the quarter-ending price settled at $1,310/MT CFR New York. This figure underscores the negative pricing trend that permeated throughout Q3 2024. Fortunately, no significant disruptions or plant shutdowns were reported during this period, indicating that supply chains remained stable despite the prevailing challenges. The overall market outlook for Benzoic Acid in North America remains weak, with ongoing oversupply conditions continuing to shape the pricing environment.
Asia Pacific
In Q3 2024, the APAC region faced a challenging landscape for Benzoic Acid pricing, characterized by a notable and persistent decline in market values. This downturn can be attributed to several interconnected factors. Primarily, decreased industrial output across various sectors resulted in diminished demand, leading to an oversupply situation. This oversupply, coupled with weakened demand, exerted considerable downward pressure on prices.
The ongoing depreciation of local currencies against major global currencies further compounded these challenges, making imports more expensive and dampening market sentiment. Rising raw material costs, particularly for Toluene, significantly increased production expenses, squeezing manufacturers' margins and ultimately leading to reduced profitability. Compounding these issues, the quarter also experienced disruptions, including unexpected plant shutdowns that affected supply dynamics and further contributed to price volatility.
China emerged as a focal point for these price changes, experiencing a -2% decrease in Benzoic Acid prices from the previous quarter, with an even steeper -9% decline when comparing the first half to the latter half of Q3. The quarter concluded with prices at USD 1,020 per metric ton (MT) of Benzoic Acid, FOB Shanghai, underscoring the overall negative pricing environment pervasive throughout the APAC region.
Europe
In Q3 2024, the European region experienced a significant decline in Benzoic Acid pricing, primarily driven by a confluence of market factors. A notable reduction in demand from downstream sectors, particularly in the food and beverage and pharmaceutical industries, contributed to this downward pricing trend. This decrease was exacerbated by broader global economic challenges, including inflationary pressures and currency fluctuations that affected purchasing power.
High inventory levels also played a critical role in suppressing prices, as suppliers sought to offload excess stock amid weaker demand. Additionally, supply chain disruptions, particularly those stemming from geopolitical tensions and logistical bottlenecks, created an unstable market environment. Fluctuating raw material costs further complicated pricing strategies for manufacturers, who faced increased costs for essential inputs.
Within Europe, the Netherlands experienced the most pronounced price fluctuations, which mirrored the overall regional trends. Throughout Q3, prices reflected a negative correlation, showing a 1% decrease from the previous quarter. Comparisons between the first and second halves of the quarter indicated a cumulative price decline of 2%. Market dynamics were also affected by production disruptions, including plant shutdowns, culminating in a quarter-ending price for Benzoic Acid (Tech. Grade) FOB Rotterdam of USD 1,375/MT. This figure underscores a stable to negative pricing environment prevailing throughout Q3 2024.
FAQ’s
1. What caused Benzoic Acid prices to rebound sharply in North America in June 2025?
The rebound was driven by rising toluene feedstock prices, restricted Chinese exports due to labor and utility constraints, and stronger downstream consumption from the food, pharmaceutical, and biofuel industries. A weaker USD and higher freight rates further pushed costs upward.
2. How did U.S.-China tariff tensions impact Benzoic Acid pricing in APAC?
Tariffs as high as 245% significantly limited Chinese exports, leading to inventory surpluses and aggressive discounting in April and May. This disrupted pricing stability across APAC until June, when supply tightening and geopolitical risks triggered a price recovery.
3. Why were Benzoic Acid prices more stable in Europe compared to North America and APAC?
European prices were buffered by stable manufacturing output, efficient logistics, and balanced supply-demand dynamics. The appreciating Euro also improved export competitiveness, while steady demand from food preservation and pharma sectors prevented extreme price swings.
4. What is the demand outlook for Benzoic Acid in Q3 2025 across these regions?
Demand is projected to remain strong in North America and Europe, especially from pharmaceuticals and food preservation sectors. In APAC, tight supply and firm downstream consumption are expected to sustain price pressure despite broader economic challenges.
