For the Quarter Ending September 2025
North America
• In the United States, Limonene Price Index fell in Q3 2025, influenced by weak demand and declining new orders.
• Limonene production costs faced upward pressure from 2.6% year-over-year PPI increase in August 2025.
• A 3.0% year-over-year CPI increase in September 2025 indicated inflationary pressures on Limonene production.
• Limonene demand outlook was bearish due to a marginal 0.1% year-over-year industrial production increase in September 2025.
• Consumer-facing Limonene demand was supported by 5.42% year-over-year retail sales increase in September 2025.
• Declining consumer confidence to 94.2 and 4.3% unemployment rate in September 2025 impacted consumer demand.
• Limonene feedstock availability strengthened in Q3 2025, with significant year-over-year lemon production growth.
• Chemical manufacturers reported contracting raw materials and finished goods inventory levels in Q3 2025.
• Rising Henry Hub natural gas spot prices towards Q3 2025 end increased Limonene production costs.
Why did the price of Limonene change in September 2025 in North America?
• Weak demand in major customer markets and falling new chemical orders in Q3 2025.
• Rising production costs from a 2.6% year-over-year PPI increase in August 2025.
• Increased Limonene feedstock availability from strong lemon production growth in Q3 2025.
APAC
• In China, the Limonene Price Index fell quarter-over-quarter in Q3 2025, driven by weak consumer demand and manufacturing contraction.
• Limonene production costs rose in Q3 2025 due to increased manufacturing input prices and elevated natural gas costs.
• The Limonene demand outlook was mixed, with soft domestic consumption despite a 3.0% rise in retail sales in September 2025.
• Industrial production expanded by 6.5% in September 2025, offering some support for Limonene's industrial applications.
• Low consumer confidence at 89.6 and a 5.2% unemployment rate in September 2025 dampened discretionary spending.
• Producer Price Index declined by 2.3% in September 2025, indicating downward price pressure on raw materials like Limonene.
• Manufacturing raw material inventory declined in July 2025 amidst broader chemical market overcapacity in Q3 2025.
• Limonene price forecast suggests continued pressure from overcapacity and contracting manufacturing conditions in China.
Why did the price of Limonene change in September 2025 in APAC?
• Consumer Price Index declined by 0.3% in September 2025, reflecting weak consumer purchasing power and demand.
• Manufacturing Index was contracting in September 2025, signaling reduced industrial activity and lower demand for inputs.
• Structural overcapacity in the broader chemicals market kept margins tight, contributing to downward price pressure.
Europe
• Germany's Limonene Price Index fell in Q3 2025, driven by declining producer prices and weak industrial demand.
• Limonene production costs eased in September 2025, with producer prices down 1.7% from lower energy.
• Limonene demand faced headwinds from a contracting Manufacturing Index and 1.0% industrial production decline in September.
• Consumer Limonene demand was supported by 0.2% retail sales rise and stable 6.3% unemployment in September.
• Rising CPI at 2.4% in September 2025 indicated higher input costs for downstream goods, impacting Limonene demand.
• Low order backlogs in July 2025 indicated inventory accumulation; regional supply tightened in Q3 2025.
• Weak export demand for German chemical products persisted in Q3 2025, despite strengthening foreign manufacturing orders in September.
• Limonene's price outlook remains uncertain, balancing weak industrial demand, tightening regional supply, and fluctuating input costs.
Why did the price of Limonene change in September 2025 in Europe?
• Industrial production declined 1.0% in September 2025, reducing Limonene demand.
• Producer prices fell 1.7% in September 2025, easing Limonene production costs from lower energy.
• Regional supply tightened in Q3 2025 due to operational challenges, partially offsetting weak demand.
