For the Quarter Ending June 2025
APAC
• The Cyclopentanone Price Index in China witnessed a consistent downward trend over Q2 2025, primarily driven by oversupply conditions and weakening demand sentiment. The market faced a notable imbalance between production and consumption, despite relatively strong performance from end-user sectors such as automotive and industrial manufacturing.
• The Cyclopentanone Spot Price, settling at USD 3573/MT during June 2025, was pressured by persistent inventory buildup due to steady production and high plant operating rates. There were no significant raw material shortages, and feedstock Adipic Acid availability remained healthy, contributing to a declining Cyclopentanone Production Cost Trend.
• Export volumes declined amid reduced global inquiries, particularly affecting Chinese manufacturers. With rising competition among domestic producers and a surge in stockpiles, sellers were compelled to reduce prices, intensifying the downward pressure on the Price Index.
• In July 2025, the Cyclopentanone Price Index continued to decline due to aggressive price competition, abundant inventories, and lackluster demand from construction and electronic chemical intermediates. Although sectors like automotive and high-tech manufacturing showed resilience—e.g., China-made vehicle sales increased YoY and NEV production remained strong—this demand was insufficient to balance out the market oversupply.
• The Cyclopentanone Demand Outlook remains cautiously optimistic for Q3 2025, contingent upon export recovery and policy-driven infrastructure spending. However, in the near term, the Cyclopentanone Price Forecast suggests a bearish tone unless significant consumption uptick or supply rationalization occurs.
Europe
• During Q2 2025, the Cyclopentanone Price Index in Germany fluctuated amidst a mixed industrial landscape. Despite stable availability of feedstocks and moderate production levels, downstream market sentiment remained fragile due to regional economic uncertainty.
• The Cyclopentanone Demand Outlook remained under pressure as key consuming sectors such as insulation and coatings operated cautiously amid tepid construction and limited export orders. Inventories grew modestly, prompting periodic downward corrections in the Spot Price.
• In July 2025, the Price Index exhibited continued fluctuations, largely influenced by weak international demand, erratic restocking behavior, and subdued momentum in the construction and automotive segments. Despite no significant disruptions in the supply chain, producers lowered offers to remain competitive in a buyer-driven market.
• The Cyclopentanone Production Cost Trend remained manageable due to stable upstream input prices, yet low operating margins pressured manufacturers to curtail output in some regions. The Cyclopentanone Price Forecast for Europe remains volatile in the near term, dependent on fiscal stimulus and improvement in industrial consumption patterns.
North America
• The North American market experienced erratic shifts in the Cyclopentanone Price Index during Q2 2025, shaped by uneven demand recovery and a fragmented downstream industrial outlook. With domestic manufacturing under strain from economic headwinds, suppliers faced uncertain offtake volumes.
• The Cyclopentanone Spot Price saw periodic adjustments as participants responded to inconsistent restocking cycles, with export orders from Latin America providing some support. However, rising inventories and conservative purchasing limited the upside in prices.
• By July 2025, the Price Index had declined marginally, primarily due to lackluster demand from insulation, polymer additives, and fine chemical applications. Even with stable feedstock availability and no major production disruptions, suppliers were unable to maintain earlier pricing levels.
• The Cyclopentanone Production Cost Trend stayed steady, but the broader market was weighed down by inflation concerns, slower infrastructure development, and weak housing starts. Looking ahead, the Cyclopentanone Demand Outlook depends on energy sector recovery, building material consumption, and policy-driven industrial revitalization. The Price Forecast for Q3 reflects guarded expectations with a risk of further downside unless demand normalizes.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American Cyclopentanone market experienced price fluctuations, influenced by sectoral demands and economic conditions. January saw a modest price increase due to steady demand from the pharmaceutical sector, driven by the synthesis of active pharmaceutical ingredients (APIs). However, February witnessed a slight dip as the rubber and agrochemical industries faced challenges, with companies experiencing market pressures. March brought renewed price pressures, driven by rising raw material costs and supply chain disruptions.
The pharmaceutical sector's performance notably impacted Cyclopentanone demand. The increasing need for high-purity Cyclopentanone in drug synthesis contributed to market growth. However, the rubber and agrochemical industries faced challenges, with production slowdowns impacting demand for Cyclopentanone derivatives used in manufacturing processes.
Overall, North America's Cyclopentanone market in Q1 2025 was shaped by a recovering pharmaceutical sector and struggling rubber and agrochemical industries, leading to a nuanced pricing landscape influenced by varying sectoral demands and economic factors.
Asia
In Q1 2025, the Asian Cyclopentanone market continued to experience downward price pressure, a trend persisting from the latter half of 2024. This decline was primarily attributed to an oversupply situation, with high inventories exceeding consumption levels. Despite a slight improvement in manufacturing activity and strong export growth, demand from key application sectors such as pharmaceuticals, flavors, and agrochemicals remained stable but weak. The lackluster performance of these sectors further dampened demand, leading to sustained price pressure throughout the quarter.
In China, the largest producer in the region, domestic demand softened slightly due to pharmaceutical inventory optimization. However, international buyers capitalized on lower prices, stocking up for Q1 2025. The fragrance industry's seasonal peak partially offset the domestic slowdown.
Overall, the Asian Cyclopentanone market in Q1 2025 was characterized by oversupply, leading to sustained price pressure. Positive macroeconomic indicators like export growth and improved manufacturing activity had limited impact on Cyclopentanone demand. Weak growth in key sectors and cautious procurement strategies created challenges for market participants, who struggled with high inventories and profit margins.
Europe
In Q1 2025, the European Cyclopentanone market experienced moderate price fluctuations, influenced by sectoral demands and economic conditions. January saw stable prices due to balanced supply and demand, even as economic factors slowed the construction and automotive sectors. High interest rates and reduced trade activity tempered demand, keeping commodity prices steady. Germany’s cautious market approach, combined with ample inventory levels, limited price fluctuations despite attempts to curb production and stabilize margins. However, competition from imports prevented any significant price increases, maintaining a steady market landscape.
The pharmaceutical sector's performance notably impacted Cyclopentanone demand. The increasing use of Cyclopentanone in drug synthesis contributed to market growth. However, the rubber and agrochemical industries faced challenges, with production slowdowns impacting demand for Cyclopentanone derivatives used in manufacturing processes.
Overall, Europe's Cyclopentanone market in Q1 2025 was shaped by stable demand in key sectors, balanced supply, and cautious economic sentiment, leading to a nuanced pricing landscape.
For the Quarter Ending December 2024
North America
In Q4 2024, the Cyclopentanone market in the North American region, particularly USA exhibited price stability. October saw stable prices, likely due to balanced supply and demand, despite sluggish demand and cautious inventory management reflecting in moderate offtakes. Rising feedstock costs, driven by higher natural gas prices, impacted production costs. November maintained price stability, mirroring the unchanged price. Reduced imports due to trade issues created upward pressure on Cyclopentanone, offset by subdued demand. A rising PMI and energy costs indicated potential upward pressure on production costs. Decreased container imports, a seasonal factor, also had a minor negative impact.
December's stable price indicated stability for Cyclopentanone, despite supply chain disruptions and moderate supply. Reduced export rates and subdued demand from the agrochemical sector due to cautious buying impacted Cyclopentanone. Lower feedstock ammonia cost support further challenged production costs.
Overall, Q4 2024 showed Cyclopentanone price stability in the US, influenced by balanced supply and demand. However, rising production costs due to energy and feedstock prices, coupled with subdued agricultural sector demand, created challenges for market participants. Macroeconomic conditions and seasonal factors were key influencers.
APAC
In Q4 2024 , the Cyclopentanone market in the APAC region, particularly China saw a price decline driven by oversupply and moderate demand. October started with a 4% price drop due to high inventories exceeding consumption, despite a slightly improved PMI and strong export growth Increased manufacturing activity didn't boost Cyclopentanone demand, which remained stable but weak The lackluster performance of key application sectors (pharmaceuticals, flavors, agrochemicals) further dampened demand.
November presented a mixed picture for the broader Chinese chemical industry. While consumer confidence improved and automotive sales surged, the PPI decline indicated cost reductions. Cyclopentanone production remained steady, with increased efficiency and lower raw material costs exacerbating the price decrease. Exports remained stable due to consistent global demand, especially in pharmaceuticals and perfumery. Domestic demand softened slightly due to pharmaceutical inventory optimization, but international buyers capitalized on lower prices, stocking up for Q1 2025. The fragrance industry's seasonal peak partially offset the domestic slowdown.
Overall, Q4 2024 was characterized by oversupply, leading to sustained price pressure. Positive macroeconomic indicators like export growth and improved manufacturing activity had limited impact on Cyclopentanone demand. Weak growth in key sectors and cautious procurement strategies created challenges for market participants, who struggled with high inventories and profit margins. The price decline continued throughout the quarter, creating a difficult environment for businesses operating in this market segment.
Europe
In Q4 2024, the Cyclopentanone market in the European region, particularly Germany showed price stability. October's stable prices, despite a prolonged Eurozone manufacturing downturn, were potentially supported by a healthy agricultural sector (indicated by strong phosphate fertilizer production). However, rising ammonia costs due to import delays and port congestion impacted production costs. November maintained price stability, but moderate production due to limited ammonia, unfavorable weather impacting agricultural demand, and a worsening manufacturing downturn negatively affected the Cyclopentanone market. Rail congestion further hampered supply.
December saw a slight price decrease, reflecting sluggish demand due to the holiday season and adverse weather. The sharp decline in Eurozone manufacturing output and port disruptions further reduced demand for Cyclopentanone. Reduced feedstock ammonia cost support added to production cost pressures.
Overall, Q4 2024 saw Cyclopentanone price stability in Germany, despite a challenging economic climate. The prolonged manufacturing downturn significantly reduced industrial demand. While the agricultural sector offered some support, unfavorable weather, rising energy costs, and supply chain disruptions created significant challenges for market participants.
For the Quarter Ending September 2024
North America
In Q3 2024, the Cyclopentanone prices remained relatively stable within a narrow range, influenced by various concurrent factors. The U.S. economy displayed mixed signals, with underlying resilience offset by persistent inflation worries and geopolitical instability.
Supply conditions were driven by steady manufacturing output and shifting trade patterns. The Producer Price Index (PPI) for manufacturing industries dipped slightly from 249.624 in Q2 to 248.383 in Q3, indicating modest cost savings for producers. Inventory replenishment after significant drawdowns earlier in the year supported economic recovery, with Q2 GDP growth reaching 3.0% and forecasted annual growth at 2.7%.
Consumer activity and business investments, propelled by initiatives like the CHIPS Act, sustained demand, while inflation eased below 3.0% in July. Nevertheless, ongoing geopolitical tensions, such as conflicts in Ukraine and the Middle East, alongside potential import tariffs, posed risks to supply chains and trade flows. Although the Fed’s planned interest rate cuts are expected to boost spending and growth, uncertainties in labor markets and trade policies could influence the supply outlook moving into 2025.
APAC
In the third quarter of 2024, the APAC region witnessed a challenging period for Cyclopentanone pricing, characterized by a notable downward trend. Various factors contributed to this decline, including weakened industrial demand, supply stability, and economic uncertainties. The market grappled with subdued industrial output, particularly in key sectors like property and retail, leading to reduced demand for chemicals. Additionally, disruptions from extreme weather events further hampered production activities. China, experiencing the most significant price changes, faced high supply levels amidst a slowdown in industrial production and lower overall demand. The quarter saw a notable -10% decrease from the previous quarter, with a -7% drop observed between the first and second half. Despite seasonal optimism potentially influencing prices, the overall sentiment remained bearish. The quarter ended with Cyclopentanone priced at USD 3803/MT FOB Shanghai basis, reflecting the prevailing negative pricing environment. Notably, no plant shutdowns were reported during this period.
Europe
During Q3 2024, Cyclopentanone prices in Europe fluctuated within a narrow range, influenced by economic uncertainties linked to the ongoing conflict in West Asia and sluggish growth in both Europe and the U.S. Rising freight costs, container shortages, and logistical issues were prominent. Shipping giants such as MSC and CMA CGM raised FAK rates to as high as $6,500 per container, driven by space limitations and added operational fees. Delays due to Red Sea disruptions and Singapore port congestion further complicated the situation. Air freight rates from Northeast Asia to Europe also spiked, fueled by booming e-commerce and semiconductor demand, with spot rates rising 40% year-over-year. Despite efforts to expand capacity, the imbalance between outbound and return loads persisted. With rising geopolitical tensions and seasonal demand, freight market volatility is likely to extend into Q4. Economically, Europe experienced stagnation in Q3, as Germany’s industrial sector struggled with weak output, high energy costs, and falling exports, contributing to broader challenges across the eurozone.
FAQs
Q1: What is the current price of Cyclopentanone in the global market?
A1: The current Cyclopentanone Spot Price varies regionally, but overall, the Price Index has shown a declining trend across major markets like China, Europe, and the US due to oversupply and subdued demand.
Q2: How is the current market situation of Cyclopentanone globally?
A2: The global Cyclopentanone market is under pressure from high inventories and soft end-user demand. While some sectors like automotive remain strong, they are not sufficient to counterbalance weak construction and insulation demand, keeping the Price Forecast muted.
Q3: What is driving the production cost trend of Cyclopentanone in Q2 2025?
A3: The Cyclopentanone Production Cost Trend has remained relatively stable due to sufficient feedstock (Adipic Acid) supply and no major energy price shocks. However, competitive pricing and low demand have squeezed margins.
Q4: What are the demand outlook trends for Cyclopentanone in the near term?
A4: The Cyclopentanone Demand Outlook remains cautious. Automotive and refrigeration applications offer support, but unless construction and electronics rebound globally, demand recovery will likely remain subdued into Q3 2025.
