For the Quarter Ending September 2025
North America
• In the United States, the Gamma Butyrolactone Price Index rose quarter-over-quarter in Q3 2025, driven by increasing production costs.
• Gamma Butyrolactone production costs increased in Q3 2025, influenced by a 2.6 percent rise in PPI for August 2025.
• Energy costs for chemical manufacturing and Butanediol production rose in Q3 2025, impacting expenses.
• Demand for Gamma Butyrolactone remained soft in Q3 2025, with new chemical orders declining.
• Industrial production in September 2025 was 0.1 percent above its year-earlier level, while manufacturing output rose modestly in August.
• Consumer confidence declined to 94.2 in September 2025, suggesting cautious spending affecting end-use demand.
• The unemployment rate was 4.3 percent in September 2025, indicating a stable labor market.
• Chemical industry inventories shrank in Q3 2025 as destocking efforts accelerated, tightening supply.
• Retail sales, excluding auto and gas, increased 5.42% year-over-year in September 2025, offering indirect demand support.
Why did the price of Gamma Butyrolactone change in September 2025 in North America?
• Input and raw material costs for chemical manufacturers generally increased during Q3 2025, raising production expenses.
• Energy costs for chemical production, including fuel and power, rose in Q3 2025, contributing to higher operational costs.
• Regional chemical supply tightened in July 2025 due to a partial outage at a major ethylene cracker in Texas.
APAC
• In China, the Gamma Butyrolactone Price Index fell quarter-over-quarter in Q3 2025, driven by weak industrial demand.
• Gamma Butyrolactone production costs trended lower in Q3 2025, influenced by weakened 1,4-Butanediol and Maleic Anhydride feedstock costs.
• Demand for high-purity Gamma Butyrolactone in electronics and lithium battery applications continued to grow in 2025.
• China's Manufacturing Index was contracting in September 2025, indicating reduced new orders and overall industrial activity.
• Industrial production expanded 6.5% year-over-year in September 2025, providing baseline GBL demand despite manufacturing contraction.
• Declining Producer Price Index at -2.3% in September 2025 signaled weak industrial pricing pressure on downstream GBL products.
• Consumer confidence at 89.6 in September 2025 suggested pessimism, indirectly dampening demand for GBL-containing consumer goods.
• Elevated 1,4-Butanediol inventories in China during July 2025, coupled with increased supply, pressured GBL pricing.
Why did the price of Gamma Butyrolactone change in September 2025 in APAC?
• Weakened 1,4-Butanediol feedstock costs in July 2025 reduced Gamma Butyrolactone production expenses.
• China's Manufacturing Index contracting in September 2025 signaled lower industrial demand for GBL.
• High 1,4-Butanediol inventories in July 2025, alongside increased supply, created downward price pressure.
Europe
• In Germany, the Gamma Butyrolactone Price Index fell quarter-over-quarter in Q3 2025, driven by contracting industrial activity.
• Gamma Butyrolactone production costs were influenced by high overall energy and raw material costs in Q3 2025.
• Producer prices of industrial products declined 1.7% year-over-year in September 2025, reducing GBL operational costs.
• Gamma Butyrolactone demand remained weak in Q3 2025, with industrial production declining 1.0% year-over-year.
• The Manufacturing Index indicated contracting activity in Q3 2025, signaling reduced demand for industrial chemicals.
• Natural gas prices, a key energy input, largely followed a declining trajectory in Q3 2025, stabilizing in September.
• Weakened export demand and intensified import pressures impacted Gamma Butyrolactone trade flows in Q3 2025.
• Pharmaceutical sector output firmed in Q3 2025, offering some support for GBL demand in that segment.
Why did the price of Gamma Butyrolactone change in September 2025 in Europe?
• Lower producer prices, down 1.7% year-over-year in September 2025, reduced GBL manufacturing costs.
• Contracting manufacturing activity in Q3 2025 and a 1.0% industrial production decline weakened demand.
• Weakened export demand and intensified import pressures in Q3 2025 contributed to price adjustments.
