For the Quarter Ending September 2025
North America
• In the United States, the Ferric Chloride Price Index remained stable quarter-over-quarter in Q3 2025, balancing cost pressures and weak demand.
• Ferric Chloride production costs faced upward pressure from a 3.0% CPI in September 2025 and a 2.6% PPI in August 2025.
• Softened chlorine prices and lower energy costs in Q3 2025 partially mitigated overall Ferric Chloride manufacturing cost increases.
• Ferric Chloride demand outlook remained weak in Q3 2025, with declining chemical new orders and subdued major customer market demand.
• Industrial production increased marginally by 0.1% in September 2025, limiting Ferric Chloride demand expansion.
• Robust retail sales (5.42% in September 2025) and a low 4.3% unemployment rate indirectly supported economic activity.
• US chemical inventories shrank in Q3 2025 due to accelerated destocking, influencing Ferric Chloride supply dynamics and trade flows.
• Weakened construction activity, declining consumer confidence (94.2 in September 2025), and overcapacity pressured Ferric Chloride prices.
Why did the price of Ferric Chloride change in September 2025 in North America?
• Input and raw material costs generally increased, driven by a 3.0% CPI rise in September 2025.
• Weak major customer market demand and marginal 0.1% industrial production growth in September 2025 limited price increases.
• Softened chlorine prices and lower energy costs in Q3 2025 helped stabilize Ferric Chloride production expenses.
Europe
• In Germany, the Ferric Chloride Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting industrial demand.
• Production costs were positively impacted by a 1.7% decrease in producer prices in September 2025, mainly due to lower energy costs.
• Overall German chemical industry demand weakened significantly in Q3 2025, dampening Ferric Chloride consumption.
• The Manufacturing Index contracted in Q3 2025, signaling reduced industrial activity and lower demand.
• Industrial production declined by 1.0% in September 2025, directly reducing the need for Ferric Chloride.
• Demand from the water treatment sector demonstrated robust growth in 2025, offering a counterbalancing factor.
• Chlorine feedstock prices softened across Europe in Q3 2025, reducing raw material expenses.
• Abundant chlorine inventory in Q3 2025 exerted downward pressure on market sentiment.
• Consumer prices rose 2.4% in September 2025, increasing general operational costs for manufacturers.
• Retail sales increased by 0.2% in September 2025, indirectly supporting some end-use sectors.
Why did the price of Ferric Chloride change in September 2025 in Europe?
• Contracting industrial production, down 1.0% in September 2025, reduced overall demand.
• Softened chlorine feedstock prices and a 1.7% decrease in producer prices lowered costs.
• Abundant chlorine inventory and efforts to draw down inventories exerted downward pressure.
APAC
• In China, the Ferric Chloride Price Index fell quarter-over-quarter, driven by persistent producer deflation in September 2025.
• Ferric Chloride production costs faced downward pressure as the Producer Price Index declined by 2.3% year-on-year in September 2025.
• Overall demand was dampened by a contracting Manufacturing Index and 0.3% consumer price deflation in September 2025.
• Industrial output expanded by 6.5% year-on-year in September 2025, offering some counter-balance to overall demand weakness.
• Consumer confidence remained low at 89.6 index points in September 2025, suggesting cautious spending and investment.
• Global overcapacity, particularly from China, continued to exert downward pressure on the Ferric Chloride market in 2025.
• Trade flows in APAC faced flux in 2025 due to accelerating protectionist measures against Chinese chemical exports.
• Demand from raw chemical materials manufacturing strengthened in September 2025, while Industrial Profits rose in August-September 2025.
Why did the price of Ferric Chloride change in September 2025 in APAC?
• Producer Price Index declined 2.3% year-on-year in September 2025, indicating weak industrial demand.
• The Manufacturing Index contracted in September 2025, signaling reduced new orders and production.
• Global overcapacity from China in 2025 contributed to downward pressure on Ferric Chloride prices.
