For the Quarter Ending June 2025
Asia-Pacific (APAC)
• Isophthalic Acid Price Index in China decreased by 3.3% quarter-on-quarter, settling at USD 1,036/MT FOB Qingdao in June 2025.
• Why did the price of Isophthalic Acid change in China in Q2 2025? Prices remained steady due to balanced supply-demand fundamentals, moderate domestic PET resin consumption, and a cautious export environment influenced by elevated global tariffs and geopolitical uncertainty.
• Isophthalic Acid Price Forecast for Q3 2025: Prices are expected to hover around current levels, with modest downside risk if global demand—particularly from India and the USA—fails to recover amid prolonged tariff impacts.
• Isophthalic Acid Production Cost Trend: Feedstock availability remained stable, with no major disruptions in meta-xylene sourcing. However, moderate plant operating rates and port congestion in Qingdao and Ningbo introduced minor indirect cost pressures.
• Isophthalic Acid Demand Outlook: Domestic PET packaging demand supported a consistent draw on inventories, especially from food and beverage bottlers. However, weak external demand from India and the U.S. limited the broader recovery in order volumes.
• Trade Policy Impact: The imposition of a 145% duty on Chinese isophthalic acid exports, compared to the global average of 10% severely restricted trade flow to major destinations. Exporters adopted a roll-over strategy to mitigate risk.
• Automotive Sector: While PET consumption in automotive interiors showed marginal gains, the primary driver remained seasonal food and beverage packaging. Export-oriented PET resin production remained subdued.
North America
• Isophthalic Acid Price Index in the U.S. dropped by 6.6% quarter-on-quarter, settling at USD 1,194/MT CFR Texas in June 2025.
• Why did the price of Isophthalic Acid change in July 2025 in North America? Prices strengthened slightly due to a seasonal uptick in PET resin demand and temporary supply constraints linked to shipping disruptions from Asia.
• Isophthalic Acid Price Forecast for Q3 2025: Further upside is possible if freight costs remain elevated and downstream demand from beverage and consumer goods sectors continues rising into summer.
• Isophthalic Acid Production Cost Trend: Limited domestic production makes the U.S. reliant on imports, mainly from South Korea and Japan. Shipping rates surged in June due to GRIs, contributing to higher landed costs.
• Isophthalic Acid Demand Outlook: Demand improved in June, led by increased PET bottle production for summer beverages. FMCG restocking ahead of holiday packaging also contributed to procurement strength.
• Trade Policy Impact: A 90-day tariff truce with China provided temporary relief, allowing smoother flows of South Korean and Japanese cargo into U.S. ports. However, buyers remain cautious ahead of August trade reviews.
• Automotive Sector: The Impact on isophthalic acid consumption remained marginal, with primary use concentrated in PET for packaging. Broader chemical demand from construction and auto applications remained weak.
Europe
• Isophthalic Acid Price Index in Europe remained mostly flat in Q2 2025, stabilizing in June 2025.
• Why did the price of Isophthalic Acid change in Q2 2025 in Europe? Weak seasonal demand and high inventories capped price gains, though stable inflows from Asia and moderate PET resin demand offered support.
• Isophthalic Acid Price Forecast for Q3 2025: Prices may rise marginally due to summer restocking, though macroeconomic headwinds and reduced industrial PET usage could limit gains.
• Isophthalic Acid Production Cost Trend: Europe remains dependent on imports from South Korea and China. Inland freight remained stable, but port delays due to container repositioning and customs checks increased handling costs modestly.
• Isophthalic Acid Demand Outlook: PET packaging demand, especially from Southern Europe, saw seasonal gains in June, while industrial packaging and resin export markets remained quiet.
• Trade Policy Impact: No major policy shifts occurred during the quarter. However, increased Asian competition and U.S. import diversions added procurement uncertainty in Central Europe.
• Automotive Sector: Slow growth in EV production and cooling vehicle sales in Germany and France had limited impact on isophthalic acid consumption, as usage is primarily concentrated in PET-based consumer packaging.
For the Quarter Ending March 2025
North America
In Q1 2025, the price trend for Isophthalic Acid in the North American market, particularly the USA, exhibited significant fluctuations. January began on a bullish note, with prices climbing up as manufacturers prepared for summer demand and faced rising input costs. This trend was exacerbated by supply chain disruptions due to global port congestion, sustaining high demand from the packaging sector.
However, February marked a notable downturn, with prices dropping. The decline was attributed to weak buyer appetite and ample inventories. Winter conditions further hampered the market, with limited domestic consumption and low production rates due to labor shortages. This resulted in stagnant trading activity.
By March, the bearish trend intensified, leading to prices settling lower. Oversupply and increased competition due to reduced downstream demand from the packaging sector forced producers to lower their quotations. Overall, the quarter closed on a downward trajectory, revealing underlying challenges such as sluggish demand and high inventory levels that are likely to continue influencing prices in the forthcoming months.
Europe
The quarterly insight for Q1 2025 on the price trend of Isophthalic Acid in Europe, particularly in Germany, indicated a bearish market driven by weakened demand from the PET sector.
In January, Isophthalic Acid followed the decline prices, which dropped amid soft demand and post-holiday sluggishness. The reduced purchasing urgency and minimal trading activity mirrored the challenges faced downstream, where substantial December purchases curbed January demand.
February marked a slight recovery with PET prices increasing due to stronger consumption in the bottle and packaging industries. Although this uptick provided a temporary boost, it did not significantly impact Isophthalic Acid prices, as the market remained cautious, influenced by the ongoing shift toward recycled PET due to stringent EU regulations.
In March, Isophthalic Acid prices remained under pressure. The ongoing uncertainty in demand, exacerbated by supply chain disruptions and labor strikes, resulted in minimal trading activity with manufacturers hesitant to acquire bulk procurements.
In summary, Q1 2025 saw Isophthalic Acid prices remained low, reflecting weak demand dynamics, impacting the outlook for the upcoming months.
APAC
The quarterly insight for Q1 2025 on the price trend of Isophthalic Acid in the APAC region particularly China revealed a consistently bearish market, characterized by weak demand and ample supply.
In January, a slowdown in production due to the Lunar New Year and low demand led to limited market transactions. The market was quiet, reflecting a cautious approach from buyers focused on fulfilling immediate needs rather than investing in bulk purchases.
February saw little change; demand from the downstream PET sector remained soft. A sluggish recovery post-holiday raised concerns about overproduction amid ongoing competition among manufacturers, impacting profit margins significantly. The influence of pre-holiday stockpiling contributed further to the tepid trading environment.
By March, the absence of significant market activity persisted. The price for Isophthalic Acid stabilized at lower levels, attributed to insufficient downstream demand and increased competitiveness from recycled PET. Trade uncertainties and tariff issues heightened market apprehensions, leading to restrained purchasing behaviors.
In conclusion, Q1 2025 exhibited persistent low demand and stable pricing for Isophthalic Acid in China, driven by economic uncertainties and competition from sustainable alternatives.
For the Quarter Ending December 2024
North America
The North American Isophthalic Acid market in Q4 2024 experienced subdued conditions mirroring trends in the upstream Purified Terephthalic Acid (PTA) market, its primary feedstock. Additionally, demand fundamentals from the downstream packaging sector also shaped the pricing trajectory of Isophthalic Acid. Weak demand from the packaging industry, a key consumer of Isophthalic Acid, was the overarching factor influencing market dynamics throughout the quarter.
The overall market sentiment remained bearish throughout Q4. October saw stable prices, influenced by sluggish US economic activity and tepid demand from the packaging sector. However, November brought a decrease in prices due to oversupply from early destocking, coupled with the off-peak season for polyester. This downward trend continued into December, with a further price drop, driven by weak downstream demand and ample domestic supply.
Isophthalic Acid market participants faced several challenges in Q4 2024. Weak demand, coupled with ample supply, put downward pressure on prices, squeezing profit margins. Supply chain disruptions increased costs and complicated logistics. The overall economic uncertainty further added to the challenges, causing buyers to adopt a wait-and-see approach and delay purchases.
Europe
The European Isophthalic Acid market in Q4 2024, particularly in Germany, experienced a complex interplay of factors impacting pricing and market sentiment. The overall trend mirrors the volatility observed in the upstream PTA market, its primary feedstock, and the shared downstream packaging sector.
The quarter began with a relatively subdued market, reflecting the continued weakness in the downstream packaging sector. Low demand from this sector, exacerbated by the cold winter months reducing demand for plastic bottles, and cautious buying behavior from processors created a sluggish start. While there were periods of price increases driven by increased orders and restocking activity, particularly in November, these gains were largely offset by the persistent bearish sentiment and weak downstream demand. The pre-holiday season in December saw additional downward pressure on prices.
The combination of weak demand, price volatility, and economic uncertainty presented significant challenges for market participants. Producers faced difficulties in maintaining pricing power, while buyers exhibited cautious purchasing behavior, delaying the replenishment of inventories. The general uncertainty created a wait-and-see approach, hindering market activity and further dampening prices. The low demand and resulting oversupply put significant downward pressure on profit margins across the packaging sector.
APAC
The APAC Isophthalic Acid market, specifically in China, experienced a generally bearish Q4 2024, with prices fluctuating around a downward trend. The quarter began with a marginal price decline in October, driven by weak downstream demand in the polyethylene terephthalate (PET) market and falling crude oil prices. While a temporary price increase occurred later in October due to increased international demand, particularly from India, the overall trend remained downward. November witnessed a more significant price decline, linked to weak petrochemical market conditions, an oversupply of meta-xylene, and continued weak PET market demand. December saw prices stabilize, with sluggish demand from downstream sectors and oversupply leading to some plant shutdowns. However, gradual inventory depletion towards the end of the quarter hinted at potential future price increases.
The performance of the downstream PET market was a significant driver, with weak demand and falling feedstock costs impacting isophthalic acid prices. Fluctuations in crude oil prices and meta-xylene supply also influenced the market. Seasonal factors, particularly the slowdown in demand towards the end of the year, contributed to the overall bearish trend. The quarter ended with isophthalic acid priced at USD 1125/MT FOB Qingdao.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Isophthalic Acid market experienced a sustained decline in prices, with the USA witnessing the most significant changes. The decline in the price of m-xylene, a critical feedstock in isophthalic acid manufacturing, reduced production costs.
This has allowed manufacturers to lower their selling prices to remain competitive. Prices for m-xylene fell due to dampened market sentiments and lower overseas import offers. Due to the dullness of the off-season, downstream demand for isophthalic acid, especially from PET resin and its derivative industry, has remained low. This decreased demand has pushed down the costs of both m-xylene and isophthalic acid.
The overall trend for Isophthalic Acid prices in the USA has been negative. In Q3 2024, prices decreased by 9% compared to the previous quarter, indicating a continuing downward trajectory. The second half of the quarter saw a significant -8% price difference from the first half, reflecting a pronounced decline. As the quarter concluded, Isophthalic Acid CFR Texas in the USA settled at USD 1340/MT, highlighting the prevailing decreasing sentiment in the market.
APAC
In Q3 2024, the Isophthalic Acid market in the Asia-Pacific region witnessed a significant decrease in prices, influenced by various factors. The quarter saw a 5% decrease from the previous quarter in 2024. China, in particular, experienced the most substantial price changes, reflecting a -8% difference between the first and second half of the quarter. The market faced a downturn in Q3 2024 due to several factors including excess supply, weak consumer spending, and slow demand from the downstream PET resin industry. This combination led to lower prices and negative market sentiment. Furthermore, the decline in crude oil prices and disruptions in global shipping further impacted pricing dynamics. In China, the Isophthalic Acid market faced notable fluctuations, with prices showing a downward trend. The quarter-ending price of Isophthalic Acid FOB Qingdao in China stood at USD 1140/MT, indicating a consistent decrease. Overall, the pricing environment for Isophthalic Acid in the APAC region during Q3 2024 has been characterized by negative sentiment, with prices steadily declining.
Europe
The European Isophthalic Acid market in Q3 2024 was impacted by mixed trends, primarily driven by fluctuations in the downstream PET market. Considering downstream, PET prices in Germany experienced a significant 1.1% drop in the first half of Q3. This decline was attributed to weak demand from downstream customers due to low purchasing activity and insufficient cost pressure from feedstock inputs. During this period, demand for Polyethylene Terephthalate (PET) remained limited, particularly from the downstream industries. Consumption levels for PET remained moderate to low, further influenced by the price decrease. This was further impacted by weak consumer sentiment, as confidence in Germany took a significant hit in August. Both income and economic expectations declined sharply, while willingness to spend dropped slightly. In the second half of the quarter, PET resin prices stabilized after a sharp fall in the previous weeks. This stabilization was supported by improving consumer sentiment and a minor increase in PET resin sales. Sustained low feedstock prices and consistent demand contributed to the stabilization of PET resin prices.
Frequently Asked Questions (FAQs)
1. What is the current price trend of Isophthalic Acid in APAC?
Prices in China were assessed at USD 1,036/MT FOB Qingdao in June 2025.
2. What is the current price trend of Isophthalic Acid in North America?
U.S. prices were stable at USD 1,194/MT CFR Texas in June 2025.
3. What is the current price trend of Isophthalic Acid in Europe?
European prices held steady as moderate demand offset seasonal gains, keeping prices range-bound.
4. Why did Isophthalic Acid prices change in Q2 2025?
o APAC: Stable domestic PET demand and subdued export orders-maintained market equilibrium amid high export tariffs.
o North America: Seasonal PET packaging demand lifted prices slightly despite oversupply concerns.
o Europe: Weak industrial demand offset seasonal gains, keeping prices range-bound.
