For the Quarter Ending September 2025
North America
• In United States, the Linalool Price Index remained stable to slightly fell in Q3 2025, influenced by varied feedstock costs.
• Linalool production costs were impacted by USA Acetone prices dropping -7.87% in Q3 2025 due to oversupply.
• Natural gas input prices for US manufacturing rose 25.8% year-over-year in Q3 2025, increasing production expenses.
• Demand for Linalool was supported by Personal Consumption Expenditures on food, rising from $2098.7B in July to $2105.1B in August.
• Downstream cosmetics and beauty sector showed strength, APR Corp's US revenue exceeded USD 102 million in Q3 2025.
• Industrial Production Index reached 104.2 (2017=100) in September 2025, a 4.2% year-over-year gain.
• The Producer Price Index for primary basic organic chemicals decreased from 209.1 in July to 208.0 in August 2025.
• Policy changes included regulatory relief for chemical manufacturing in July 2025 and a U.S.-EU trade deal in September.
Why did the price of Linalool change in September 2025 in North America?
• Acetone prices fell -7.87% in Q3 2025 due to weak downstream demand and ample local production capacity.
• Natural gas input prices for US manufacturing rose 25.8% in Q3 2025, increasing operational costs.
• The PPI for primary basic organic chemicals decreased from 209.1 in July to 208.0 in August 2025.
APAC
• In China, the Linalool Price Index fell quarter-over-quarter in Q3 2025, driven by decreasing production costs.
• Linalool production costs decreased, with chemical raw material PPI falling 6.5% YoY in July 2025.
• Demand for Linalool remained robust, supported by 3.0-3.7% YoY retail sales growth in Q3 2025.
• Industrial production, a key demand driver, grew 6.5% YoY in September 2025, boosting intermediate use.
• Cosmetics retail sales rose 4.5% YoY in July 2025, increasing Linalool demand in personal care.
• Freight costs declined, with sea freight rates from Shanghai falling 37% in September 2025.
• Natural gas prices were 2.72 USD/MMBtu in September 2025; LNG imports declined 11.5% YoY in Q3 2025.
• The Linalool Price Index forecast suggests continued stability or slight downward pressure due to prevailing cost trends.
Why did the price of Linalool change in September 2025 in APAC?
• Production costs decreased due to a 6.5% YoY fall in chemical raw material PPI in July 2025.
• Freight rates from Shanghai significantly dropped, with sea freight falling 37% in September 2025.
• A stable to slightly deflationary CPI, -0.3% YoY in September 2025, impacted overall pricing power.
Europe
• In Germany, the Linalool Price Index fell quarter-over-quarter in Q3 2025, driven by declining basic chemical producer prices.
• Linalool production costs decreased as natural gas prices declined 5.7% year-on-year in Q3 2025.
• Demand for Linalool faced pressure from a sluggish Vitamin E market in Q3 2025.
• The Linalool Price Index was influenced by industrial PPI, which fell 1.7% year-on-year in September 2025.
• European natural gas (TTF) spot prices averaged USD 10.98/MMBtu in August 2025, impacting Linalool production.
• High European Vitamin E inventories in Q3 2025 limited aggressive buying, affecting Linalool demand.
• EU chemical sector exports increased 24.4% quarter-on-quarter in Q3 2025, indicating trade activity.
• Policy changes, including strengthened import surveillance by Q3 2025, impacted the chemical trade.
• Retail Trade Growth in the EU grew 1% year-on-year in August 2025, a modest demand signal.
Why did the price of LINALOOL change in September 2025 in Europe?
• Basic chemical producer prices fell 2.2% year-on-year in September 2025, reducing Linalool input costs.
• Sluggish Vitamin E market and high inventories in Q3 2025 suppressed Linalool demand.
• Natural gas prices declined 10.7% year-on-year in September 2025, easing Linalool production expenses.
