For the Quarter Ending September 2025
North America
• In United States, the Iso E Super Price Index rose quarter-over-quarter in Q3 2025, driven by increasing production costs.
• Iso E Super production costs increased due to rising terpene feedstock (alpha-pinene) costs through Q3 2025.
• Natural gas prices rose year-over-year in Q3 2025, intensifying manufacturing margin pressure for Iso E Super.
• The Producer Price Index rose 2.6% in August 2025, indicating higher input costs for Iso E Super producers.
• Iso E Super demand outlook was mixed; retail sales increased 5.42% in September 2025, supporting consumer goods.
• However, consumer confidence declined to 94.2 in September 2025, suggesting reduced discretionary spending on fragrances.
• Industrial production growth was near stagnant at 0.1% in September 2025, indicating weak manufacturing activity.
• A low unemployment rate of 4.3% in September 2025 supported consumer disposable income, benefiting Iso E Super demand.
Why did the price of Iso E Super change in September 2025 in North America?
• Terpene feedstock costs, specifically alpha-pinene, steadily increased through Q3 2025, raising production expenses.
• The Producer Price Index rose 2.6% in August 2025, reflecting higher input costs for Iso E Super manufacturers.
• The Consumer Price Index increased 3.0% in September 2025, indicating broader inflationary pressures on raw materials.
APAC
• In China, the Iso E Super Price Index remained stable quarter-over-quarter, influenced by mixed macroeconomic signals.
• Iso E Super production costs saw upward movement in Q3 2025 due to acetaldehyde price volatility.
• Acetaldehyde prices softened in September 2025, driven by reduced downstream demand and ample inventories.
• Demand for Iso E Super was supported by robust fragrance market growth in China during Q3 2025.
• China's Consumer Price Index fell 0.3% in September 2025, indicating deflationary pressures on consumer spending.
• The Manufacturing Index was contracting in September 2025, signaling reduced industrial activity.
• Retail sales grew 3.0% year-on-year in September 2025, boosting consumer goods demand for Iso E Super.
• Industrial production expanded 6.5% year-on-year in September 2025, supporting overall manufacturing output.
• Ample acetaldehyde inventories and broader chemical overcapacity contributed to competitive pricing.
• Consumer confidence at 89.6 in September 2025 suggested caution in discretionary spending.
Why did the price of Iso E Super change in September 2025 in APAC?
• Weak consumer confidence (89.6 index in September 2025) dampened discretionary spending on fragrance products.
• Acetaldehyde feedstock prices softened in September 2025 due to reduced demand and high inventories.
• Contracting Manufacturing Index in September 2025 signaled reduced industrial activity and overall demand.
Europe
• In Germany, the Iso E Super Price Index softened quarter-over-quarter in Q3 2025, driven by weak industrial demand.
• Iso E Super production costs eased, supported by a 1.7% YoY decline in producer prices in September 2025.
• Demand for Iso E Super was subdued as Germany's Manufacturing Index showed contracting activity in Q3 2025.
• Industrial production decreased by 1.0% YoY in September 2025, negatively impacting Iso E Super consumption.
• Naphtha costs eased in Q3 2025, contributing to lower overall input expenses.
• European natural gas prices generally softened in Q3 2025, despite an August uptick, aiding cost reductions.
• Iso E Super demand outlook remains challenged by cautious downstream purchasing and inventory buildup in Q3 2025.
• Consumer spending, with retail sales up 0.2% YoY in September 2025, offered modest support for end-product demand.
• Inflation, at 2.4% YoY in September 2025, contributed to eroding consumer purchasing power for discretionary items.
Why did the price of Iso E Super change in September 2025 in Europe?
• Weak industrial output and contracting manufacturing activity in Q3 2025 reduced Iso E Super demand.
• Lower naphtha costs and a 1.7% YoY decrease in producer prices in September 2025 eased production.
• Cautious downstream purchasing and increased naphtha inventories in Q3 2025 pressured Iso E Super prices.
