For the Quarter Ending March 2025
North America
In Q1 2025, the North American Isothiazolinone market experienced price fluctuations, influenced by sectoral demands and economic conditions. January saw a modest price increase due to steady demand from the wastewater treatment sector, driven by stringent environmental regulations. However, February witnessed a slight dip as the paper and pulp industry faced challenges, with companies like International Paper Co. (IP) and Packaging Corp of America (PKG) experiencing market pressures. March brought renewed price pressures, driven by rising raw material costs and supply chain disruptions.
The wastewater treatment sector's performance notably impacted Isothiazolinone demand. The increasing need for effective biocides in industrial wastewater treatment contributed to market growth. However, the paper and pulp industry faced challenges, with production slowdowns impacting demand for Isothiazolinone derivatives used in manufacturing processes.
Overall, North America's Isothiazolinone market in Q1 2025 was shaped by a recovering wastewater treatment sector and a struggling paper and pulp industry, leading to a nuanced pricing landscape influenced by varying sectoral demands and economic factors.
Asia
In Q1 2025, the APAC Isothiazolinone market experienced downward pressure driven by excessive inventories and persistent destocking across key markets. Industrial demand softened amid manufacturing contractions and subdued new orders, while freight cost reductions further eased import expenses, particularly in import-dependent regions. Despite pockets of sectoral growth, overall chemical consumption remained weak, with cautious purchasing behavior prevailing. The market sentiment was predominantly bearish, reflecting oversupply and muted downstream demand, with limited price recovery prospects as the quarter progressed. China's Isothiazolinone prices declined by 8.07% from Q4 2024 to Q1 2025, averaging $1567.33 USD/MT in the current quarter. Monthly prices remained relatively flat, underscoring persistent oversupply and subdued industrial activity, as manufacturing contracted and export orders weakened. The market trend is bearish, driven by cautious procurement and ongoing destocking. Near-term outlook suggests continued price pressure, tempered by occasional modest rebounds linked to shifting demand patterns.
Europe
In Q1 2025, the European Isothiazolinone 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 paint and coatings sector. 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 wastewater treatment sector contributed to steady demand, driven by stringent environmental regulations and the need for effective biocides. The pulp and paper industry also showed resilience, with companies like UPM and Stora Enso maintaining operations, supporting consistent consumption levels in downstream applications. Overall, Europe's Isothiazolinone 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 Isothiazolinone market in North America saw a generally stable trend, with some price fluctuations driven by varying demand across sectors. In start of Q4, prices increased slightly, reflecting steady production and solid demand from key industries like paper and cardboard manufacturing, where Isothiazolinone is widely used as a biocide and preservative. The manufacturing sector showed signs of recovery, supporting consistent consumption levels in downstream applications.
The market faced some challenges, as global economic uncertainties and export difficulties created downward pressure. While the water treatment and personal care sectors continued to drive demand, competition from alternative preservatives in global markets limited potential for further price increases. Despite these pressures, Isothiazolinone demand remained relatively stable, aided by ongoing use in industrial applications.
Additionally, the U.S. chemical industry raised concerns about the potential impact of an extended dock workers' strike on the Gulf and East Coasts. Such a strike could disrupt exports and exacerbate supply surpluses. With production levels remaining moderate, ongoing supply chain challenges continued to affect both imports and exports, further dampening market sentiment.
Overall, Isothiazolinone prices in North America experienced moderate fluctuations in Q4 2024, reflecting stable demand but facing external market pressures.
APAC
In Q4 2024, Isothiazolinone prices in the APAC region showed a mixed trend. In October, prices rose by 1.2% in China, driven by stable production and growing demand, particularly from the paper and cardboard sectors, where Isothiazolinone serves as a biocide and preservative. This uptick was supported by a recovery in manufacturing activity, marking a return to growth after several months of contraction.
Throughout the quarter, the market faced some challenges as global economic uncertainties and export pressures weighed on demand. While some chemicals saw price declines due to oversupply, Isothiazolinone remained stable, supported by consistent demand from the water treatment and personal care sectors. However, increased competition from alternative preservatives and a slight decline in imports created some pricing pressure.
Throughout the quarter, domestic consumption remained stable but subdued, and export growth faced limitations due to price competition. Overall, the Isothiazolinone market in APAC experienced moderate price fluctuations, driven by steady demand from key industrial sectors, but constrained by external market conditions.
Europe
In Q4 2024, the Isothiazolinone market in Europe remained relatively stable, with some price fluctuations influenced by varying demand across key sectors. Prices saw a slight increase, supported by steady demand from industries such as paper and cardboard production, where Isothiazolinone is used as a biocide and preservative. The manufacturing sector’s recovery also contributed to consistent consumption levels, maintaining stability in the market.
Throughout the quarter, the market began to show signs of weakening. Global economic uncertainties and increased competition from alternative preservatives put downward pressure on prices. While the water treatment and personal care sectors continued to support demand, it was not enough to offset broader market challenges. As a result, prices remained subdued.
Additionally, the European market faced concerns about the potential impact of global supply chain disruptions, including slower exports and rising logistical costs. This resulted in a bearish market outlook, with prices expected to stay subdued unless there was a significant recovery in demand in the near future. The overall market sentiment remained cautious, with participants anticipating slow growth moving into 2025.
Overall, Isothiazolinone prices in Europe experienced moderate fluctuations in Q4 2024, with cautious sentiment prevailing as the market faced external challenges.
For the Quarter Ending September 2024
North America
In Q3 2024, the Isothiazolinone prices fluctuated within a narrow range under the influence of multiple factors acting simultaneously. Meanwhile, the U.S. economy exhibited mixed signals, maintaining underlying strength despite persistent inflation concerns and geopolitical tensions.
Supply dynamics were shaped by the interplay of steady manufacturing activity and evolving trade conditions. The Producer Price Index (PPI) for manufacturing industries slightly declined from 249.624 in Q2 to 248.383 in Q3, reflecting minor cost reductions for producers. Inventory restocking after significant drawdowns in the first quarter contributed to a rebound in GDP growth, which reached 3.0% in Q2 and is projected to grow at 2.7% for the year.
Consumer spending and business investments, fueled by supportive policies like the CHIPS Act, continued to drive demand, while inflationary pressures eased, with CPI inflation falling below 3.0% by July. However, geopolitical uncertainties—such as the Ukraine and Middle East conflicts—along with potential tariffs on imports posed risks to supply chains, threatening to elevate costs and disrupt trade flows. Despite these challenges, the Fed’s expected rate cuts aim to bolster household spending and economic momentum, though labor market shifts and trade policy uncertainties may continue to impact the supply landscape into 2025.
Asia
In Q3 2024, the APAC region experienced a notable increase in Isothiazolinone pricing, driven by a combination of factors influencing market dynamics. The market saw a surge in prices due to heightened production costs amidst weakened industrial demand and output, impacting the overall pricing trend. The region faced challenges such as slowing industrial growth, sluggish retail sales, and adverse weather conditions, all contributing to the upward price movement. Despite these obstacles, the automotive sector demonstrated resilience, particularly in new energy vehicle production, which bolstered chemical consumption. Plant shutdowns, such as those caused by Typhoon Yagi, further disrupted supply chains, influencing pricing trends. China, with the most significant price changes in the region, experienced fluctuations in Isothiazolinone prices throughout the quarter. The market exhibited overall positive trends, with a notable 8% increase from the previous quarter. Price comparisons between the first and second half of the quarter revealed a 7% uptick, culminating in a quarter-ending price of USD 1724/MT for Isothiazolinone MIT 14% FOB Shanghai. This consistent upward trajectory in pricing signifies a predominantly bullish sentiment in the pricing environment for Isothiazolinone in China during Q3 2024.
Europe
Isothiazolinone prices in Europe during Q3 2024 fluctuated within a narrow range, reflecting uncertainties caused by the ongoing conflict in West Asia and sluggish growth in both Europe and the U.S. The freight sector experienced rising costs, as carriers like MSC and CMA CGM raised FAK rates to $6,500 per container, citing space shortages and operational surcharges. Red Sea disruptions and port congestion in Singapore further delayed shipments. Air freight rates from Northeast Asia to Europe also rose significantly, with a 40% increase in spot rates due to growing e-commerce demand and semiconductor activity. Despite expanded capacity, logistical imbalances persisted, complicating operations. As geopolitical tensions heighten and seasonal demand increases, freight market instability is expected to extend into Q4. Germany’s industrial downturn, marked by weak output, rising energy costs, and declining exports, weighed heavily on the eurozone's economic performance.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has stabilized in the Isothiazolinone market in North America, marked by a mixed trend in prices during this quarter. The decline in Isothiazolinone prices in May 2024 has been influenced by several significant factors, primarily the reduction in crude oil costs and oversupply conditions. The depreciation in the prices of upstream has notably eased production costs, contributing to lower Isothiazolinone prices. Furthermore, an oversupplied market condition, driven by excess inventories and high stockpiles of Isothiazolinone, exacerbated the price decline.
Turning to June 2024, the end of the second quarter witnessed prices of Isothiazolinone increase due to heightened production costs and cautious operations across the US Gulf Coast and Louisiana despite demand conditions being largely unfavorable from the downstream market. The increment in the prices is further attributed to lengthened delivery times and higher transportation costs which further pushed the prices of Isothiazolinone on the higher end. Higher mortgage rates are expected to further cast a negative sentiment for the transactions in the downstream industry keeping overall demand conditions moderate. The procurement activities from the industrial application remained positive for the time being.
The correlation between reduced upstream prices and slow downstream demand was evidence of stability in the Isothiazolinone prices. Disruptions such as issues with maritime transportation and highway insecurity further complicated the supply chain, adding to the tightening of supplies in the US Isothiazolinonemarket.
APAC
In Q2 2024, the Isothiazolinone market in the APAC region has experienced a significant upward price trajectory, driven by several critical factors. Predominantly, increased international demand, rising freight charges, and higher input costs have exerted considerable pressure on market prices, fostering a bullish pricing environment. The sharp surge in international demand, particularly from European importers amidst a restocking cycle, has contributed heavily to this price increase. Moreover, elevated ocean freight rates, owing to unseasonal demand spikes and capacity constraints, have further compounded the upward pressure on prices. China, in particular, has seen the most substantial price changes. Domestic manufacturing activity remained robust, despite a slight moderation in the Purchasing Managers' Index (PMI) to 50.4, indicating continued expansion. However, domestic demand remained subdued, contrasting with the strong international demand, which primarily fueled the price rise. This period saw no significant plant shutdowns or supply disruptions, ensuring a stable supply chain, despite the ongoing maintenance of several refineries affecting crude oil imports. The latest quarter-ending price for Isothiazolinone MIT 14% FOB Shanghai stood at USD 1594/MT, marking a positive pricing environment throughout Q2 2024. This consistent increase underscores the resilient demand on the international front, while domestic factors played a less influential role.
Europe
In the second quarter of 2024, the European Isothiazolinone market experienced significant price decreases due to several adverse factors. This period saw declining crude oil prices, which lowered production costs for Isothiazolinone. Additionally, the market faced an oversupply from the influx of inexpensive imports from neighboring regions. Despite moderate demand from the downstream sector, the overall pricing environment remained negative as supply consistently exceeded demand. Seasonal rainy weather further reduced downstream procurement activities, impacting Isothiazolinone demand. In Germany, the Isothiazolinone market was particularly strained, with a marked decline in downstream demand. The country experienced a sharp contraction in the downstream sector for the second consecutive month, exacerbated by logistical challenges due to severe flooding, further hindering market circulation. Consequently, the German market saw the most substantial price changes within the region. The overall trend reflected a consistent downward trajectory, heavily influenced by both excess supply and weakened demand conditions. Additionally, port operations were disrupted as the Verdi trade union initiated a warning strike affecting major ports, including Hamburg, Bremen, Bremerhaven, Brake, and Emden, starting in June 2024. Workers at HHLA and Eurogate terminals in Hamburg ceased operations amid stalled wage negotiations for a new collective labor agreement, causing significant port activity disruptions as reported by German media.
