For the Quarter Ending March 2025
South America
The South American liquid paraffin market in Q1 2025 exhibited steady demand supported by robust industrial production and resilient downstream sectors such as pharmaceuticals and cosmetics. Supply chains benefited from improved logistics and consistent raw material inflows, particularly from Asia and Europe, contributing to balanced inventory levels. Market sentiment remained cautiously optimistic, with strategic inventory management and preparations for seasonal demand increases shaping the regional landscape.
Overall, the quarter showed a gradual upward momentum amid stable economic activity and moderate inflationary pressures. In Brazil, liquid paraffin prices increased modestly by 0.4% from Q4 2024 to Q1 2025, averaging $1266.67 USD/MT. The intra-quarter price trend was relatively flat, reflecting steady monthly prices supported by strong pharmaceutical sector demand and rigorous quality controls at key ports.
This stable yet bullish environment is underpinned by balanced supply-demand dynamics and improved freight conditions. Near-term outlook remains positive, with expectations of sustained price levels driven by ongoing domestic manufacturing growth and strategic inventory planning.
Asia
The APAC liquid paraffin market in Q1 2025 exhibits a cautiously optimistic trajectory underpinned by steady manufacturing activity and improving supply chain logistics. Demand remains robust across pharmaceutical, cosmetic, and industrial sectors, supported by enhanced port throughput and regional trade flows. Inventory levels are generally balanced, facilitating stable market operations despite slight supply-demand imbalances. Seasonal normalization and strategic inventory planning are shaping a gradual upward momentum as the quarter progresses, with market participants preparing for increased summer consumption. In Thailand, Heavy Liquid Paraffin prices declined by 4.63% from Q4 2024 to Q1 2025, averaging USD 1,235 per tonne. Monthly prices fluctuated within the quarter, reflecting dynamic supply-demand interactions influenced by growing pharmaceutical sector demand and stringent quality controls at key ports. The market trend is cautiously bearish but poised for recovery, with near-term outlooks indicating potential price stabilization and gradual increases driven by sustained end-user interest and improved logistics.
Europe
The European liquid paraffin market in Q1 2025 exhibits a cautiously optimistic trajectory, underpinned by steady demand from pharmaceutical and healthcare sectors. Supply chains are gradually stabilizing with improved Asian material flows, though persistently high freight charges continue to challenge logistics. Inventory levels remain balanced across the region, supporting a measured upward price momentum as market participants prepare for seasonal consumption increases and strategic stock adjustments. Overall, market fundamentals suggest a slight supply-demand imbalance favoring sellers, with expectations for sustained demand and moderate price appreciation as the quarter progresses. In Spain, liquid paraffin prices declined by 5.0% from Q4 2024 to an average of $1298.33 USD/MT in Q1 2025, reflecting a fluctuating intra-quarter trend with monthly prices ranging between $1245.00 and $1370.00 USD/MT. This volatility is driven by the interplay of stringent USP compliance at key Mediterranean ports, global freight cost pressures, and robust pharmaceutical sector demand. The market remains cautiously bearish to stable, with near-term outlooks indicating potential price stabilization supported by strategic inventory management and improving supply chain conditions.
MEA
The MEA liquid paraffin market in Q1 2025 exhibited a cautiously optimistic trajectory, underpinned by steady pharmaceutical and healthcare sector demand alongside improved logistics and supply chain fluidity. Regional supply channels, particularly from Asia, showed signs of normalization, supporting balanced inventory levels across the value chain. Market participants engaged in strategic stock management amid a backdrop of stable economic indicators and rising freight costs, fostering a measured environment with gradual upward momentum anticipated as seasonal consumption patterns normalize and preparations for summer demand intensify.
In the United Arab Emirates, liquid paraffin prices declined by 10.51% from Q4 2024 to an average of USD 1,291.67/MT in Q1 2025, reflecting a fluctuating intra-quarter trend with monthly prices ranging between USD 1,200 and USD 1,445/MT. This volatility was driven by importers' inventory adjustments and evolving demand dynamics within the pharmaceutical-grade sector, amid rising freight rates and careful stockholding ahead of peak seasons. The overall trend is currently bearish but tempered by stable demand fundamentals, with a cautiously optimistic near-term outlook as market participants anticipate renewed price support from sustained downstream consumption and improved supply chain conditions.
For the Quarter Ending December 2024
South America
During Q4 2024, the Heavy Liquid Paraffin market in Brazil experienced significant price volatility. October witnessed sharp price increases driven by tight supply conditions and robust demand from pharmaceutical manufacturers. Buyers accelerated procurement activities amid concerns over supply availability, while domestic producers implemented price hikes citing higher production costs. The pharmaceutical sector's increased requirements, combined with limited spot availability, created strong upward pressure on prices.
November brought a downward correction as market fundamentals softened. Supply chains showed greater flexibility while demand from pharmaceutical manufacturers moderated. Buyers adopted a more cautious approach, leading to reduced procurement volumes and downward price pressure across the region. Several distributors reported improving inventory positions, allowing them to negotiate better prices. The market witnessed systematic trading activity as end-users maintained routine buying patterns despite the softer price trend.
December saw further price deterioration as year-end activities slowed. Domestic suppliers adjusted prices downward, responding to sluggish demand and competitive market conditions. The market's downward momentum was reinforced by comfortable inventory positions and reduced consumption patterns through quarter-end. Several key manufacturers reported adequate supply conditions amid moderating demand from the pharmaceutical sector. The combination of year-end destocking activities and competitive market conditions contributed to the softer price sentiment.
APAC
In Q4 2024, Heavy Liquid Paraffin prices in APAC markets demonstrated notable fluctuations, particularly in the Thai and Indian markets. October registered substantial price increases as Thai exporters raised their offers amid growing domestic and international demand. Indian producers simultaneously implemented price hikes, citing higher production costs due to elevated raw material prices and energy expenses. Both markets witnessed accelerated trading activity as buyers sought to secure volumes amid the bullish sentiment.
November initiated a downward price trend as market fundamentals weakened. Thai manufacturers adjusted their pricing strategies amid moderating demand and improved supply availability. Indian suppliers also reduced their offers as regional trading activity slowed. Buyers across both markets adopted a wait-and-watch approach, leading to price concessions from suppliers. Several facilities in both countries reported adequate inventory positions, while export inquiries showed signs of slowdown.
December saw a particularly sharp decline in Indian prices, while Thai markets also maintained their downward trend. Indian manufacturers faced significant pressure to reduce prices amid weak domestic demand and increased competition. Several facilities in India reported operating at reduced capacity amid slowing year-end demand. Thai export prices also weakened, impacted by reduced inquiry levels from international markets. Both markets reported comfortable inventory positions, with major producers adjusting production rates downward to match the reduced demand. The domestic markets in both countries showed limited activity as local pharmaceutical manufacturers decreased their procurement volumes.
Europe
In Q4 2024, Heavy Liquid Paraffin prices in Spain demonstrated volatility. October began with a notable upward price movement as Spanish buyers faced higher offers from Asian suppliers while domestic manufacturers also increased their prices. Spanish producers cited rising production costs and strong demand from the pharmaceutical sector for the price hikes. The market witnessed active trading as distributors sought to secure volumes amid concerns over further price increases.
November marked the beginning of a downward trend as market conditions in Spain eased. Spanish buyers leveraged improved supply availability to negotiate better prices, while Asian import offers became more competitive. The market witnessed slower trading as distributors managed existing inventories cautiously. Several Spanish buyers reported comfortable stock positions, allowing them to resist higher price offers. Import volumes from Asia remained steady, providing additional options for Spanish buyers.
December saw continued price weakness in the Spanish market as distributors maintained pressure on suppliers. The combination of adequate import availability and reduced regional demand supported further price decreases. While consumption patterns remained routine across pharmaceutical applications, Spanish suppliers had to offer competitive prices through quarter-end, reflecting the market's bearish sentiment. Year-end activities were subdued, with several key Spanish buyers reducing their procurement volumes. Domestic manufacturers reported operating at reduced rates to manage inventory levels, while maintaining competitive pricing to secure orders in the sluggish market environment.
MEA
In Q4 2024, the Heavy Liquid Paraffin market in the UAE experienced significant price movements. October saw substantial price increases as regional suppliers raised offers amid strong demand from pharmaceutical manufacturers and reduced product availability. Middle Eastern producers implemented price hikes citing higher production costs and active buying interest from both domestic and export markets. The market witnessed increased trading activity as buyers rushed to secure volumes.
November initiated a downward price trend as market fundamentals shifted. Regional manufacturers faced pressure to reduce prices amid improving supply conditions and moderating demand from key end-users. Buyers became more selective in their purchases, leading to increased price competition among suppliers. Import offers from Asian markets became more attractive, providing additional options for regional buyers and contributing to the bearish sentiment.
December continued the downward trend with further price reductions. The market witnessed slower trading activities as year-end approached, with both domestic and export demand showing signs of weakness. Several distributors reported comfortable inventory positions, while manufacturers operated at reduced rates to manage supply levels. The combination of adequate availability and limited buying interest maintained downward pressure on prices through the quarter-end, with suppliers offering additional discounts to stimulate sales.
For the Quarter Ending September 2024
South America
In Q3 2024, the South American region witnessed a notable upsurge in Liquid Paraffin prices, with Brazil experiencing the most substantial price changes. The market dynamics were primarily influenced by a combination of factors, including robust demand from key industries like pharmaceuticals and cosmetics, supply chain disruptions, and increased import costs.
These elements created a complex environment characterized by limited supply, strong demand, and logistical challenges. Disruptions such as plant shutdowns further exacerbated the market instability, leading to a tightening of inventory levels and consequent price hikes.
In Brazil specifically, the pricing trend for Liquid Paraffin displayed a consistent upward trajectory throughout the quarter. The market saw a positive sentiment overall, driven by heightened consumer demand and constrained supply. Seasonal variations, changing consumer behaviors, and economic uncertainties also played a role in shaping the pricing landscape. The quarter ended with a price of USD 1270/MT for Heavy Liquid Paraffin (USP) CFR Santos, reflecting a 2% increase from the previous quarter and showcasing a significant price shift compared to the same period last year.
APAC
In Q3 2024, the APAC region witnessed a notable uptrend in Liquid Paraffin prices, driven by a confluence of factors shaping the market dynamics. Heightened demand from various industries, including pharmaceuticals and cosmetics, coupled with supply chain disruptions, played a pivotal role in influencing the positive price trajectory. The market grappled with supply constraints, exacerbated by plant shutdowns and logistical challenges, creating a sense of urgency among stakeholders. India, in particular, experienced substantial price fluctuations, reflecting the region's sensitivity to global market trends. Seasonality impacts, alongside changing consumer preferences, further contributed to the price volatility observed in the country.
The overall trends in India showcased a correlation between demand patterns and price changes, with the market responding dynamically to internal and external stimuli. The quarter recorded a 2% price increase from the previous quarter, indicative of the market's resilience amid fluctuating conditions. Comparing the first and second half of the quarter revealed a 3% price difference, underscoring the market's adaptability to evolving circumstances. As Q3 drew to a close, the price of Heavy Liquid Paraffin in India settled at USD 104700/MT Ex-Mumbai, marking a culmination of the quarter's positive pricing environment.
Europe
In Q3 2024, the Europe region witnessed a notable uptrend in Liquid Paraffin pricing, with Spain experiencing the most significant price changes. The market dynamics were influenced by a combination of factors, including supply chain disruptions, elevated import costs, and heightened demand from sectors like cosmetics and pharmaceuticals. The quarter saw disruptions in production due to plant shutdowns, further tightening supply and driving prices upwards. Despite these challenges, the market displayed resilience, adapting to changing conditions and maintaining a positive trajectory.
Spain, in particular, encountered a surge in Liquid Paraffin prices, reflecting the overall trend in the region. The market showcased an increasing sentiment, with prices steadily rising throughout the quarter. Seasonal fluctuations and changing consumer behavior played a role in price dynamics, with demand from end-users driving the upward trend. The quarter ended with a price of USD 1370/MT for Heavy Liquid Paraffin (USP) CFR Algeciras in Spain, marking a significant increase from the previous quarter. Overall, the pricing environment in Q3 2024 was characterized by a positive outlook, supported by growing demand and supply constraints.
MEA
In Q3 2024, the MEA region experienced a notable uptrend in Liquid Paraffin pricing, with the United Arab Emirates emerging as a focal point of significant price changes. Various factors contributed to this market shift, including escalating import expenses, supply chain disruptions, and heightened demand from industries reliant on Liquid Paraffin. The market saw a surge in procurement activities driven by anticipations of future price hikes, leading to increased prices across the region. Additionally, logistical challenges and transportation bottlenecks added complexity to the pricing environment.
Within the UAE specifically, the pricing landscape reflected a dynamic pattern, with prices steadily increasing throughout the quarter. Seasonal variations, shifting consumer behaviors, and rising costs influenced price changes, showcasing a positive pricing sentiment. The correlation between pricing trends and demand dynamics was evident, with prices showing a consistent upward trajectory. The quarter-ending price stood at USD 1440/MT of Heavy Liquid Paraffin (USP) CFR Jebel Ali in the UAE, marking a substantial increase from the previous quarter and highlighting a resilient pricing environment amidst market disruptions and uncertainties.
For the Quarter Ending June 2024
APAC
In Q2 2024, the Liquid Paraffin market in the APAC region experienced a markedly positive pricing environment, driven by a confluence of critical factors. Robust demand from end-user sectors such as cosmetics, nutraceuticals, and pharmaceuticals substantially influenced market prices. A notable increase in global and regional crude oil prices, coupled with heightened energy costs, further exacerbated the upward price trends. Supply chain disruptions, including plant shutdowns at prominent manufacturing hubs, significantly curtailed production outputs, thereby tightening supply and fostering an upward pressure on prices.
India, in particular, witnessed the most substantial changes in Liquid Paraffin pricing within the APAC region. The quarter saw a pronounced rise in prices, reflecting strong domestic demand bolstered by the pharmaceutical and nutraceutical sectors' robust performance. Seasonal factors, such as heightened consumption during specific periods, amplified the demand-supply imbalance, leading to increased price volatility. The correlation in price changes was also influenced by improved logistics and better freight management, mitigating some of the earlier disruptions.
This trend underscores the persistent positive sentiment and tight market conditions. As the quarter concluded, the price of Heavy Liquid Paraffin (USP) Ex-Mumbai in India stood around USD 1229.5/MT, indicating a 2% increase from the previous quarter. The overarching pricing environment for Liquid Paraffin in Q2 2024 has been decidedly positive, marked by sustained demand and constrained supply dynamics.
Europe
In Q2 2024, the Liquid Paraffin market in the APAC region experienced a markedly positive pricing environment, driven by a confluence of critical factors. Robust demand from end-user sectors such as cosmetics, nutraceuticals, and pharmaceuticals substantially influenced market prices. A notable increase in global and regional crude oil prices, coupled with heightened energy costs, further exacerbated the upward price trends. Supply chain disruptions, including plant shutdowns at prominent manufacturing hubs, significantly curtailed production outputs, thereby tightening supply and fostering an upward pressure on prices.
India, in particular, witnessed the most substantial changes in Liquid Paraffin pricing within the APAC region. The quarter saw a pronounced rise in prices, reflecting strong domestic demand bolstered by the pharmaceutical and nutraceutical sectors' robust performance. Seasonal factors, such as heightened consumption during specific periods, amplified the demand-supply imbalance, leading to increased price volatility. The correlation in price changes was also influenced by improved logistics and better freight management, mitigating some of the earlier disruptions.
This trend underscores the persistent positive sentiment and tight market conditions. As the quarter concluded, the price of Heavy Liquid Paraffin (USP) Ex-Mumbai in India stood at USD 1350/MT, indicating a 2% increase from the previous quarter. The overarching pricing environment for Liquid Paraffin in Q2 2024 has been decidedly positive, marked by sustained demand and constrained supply dynamics.
MEA
In Q2 2024, the Liquid Paraffin market in the MEA region experienced a significant uptrend in prices, driven by a confluence of market dynamics and external factors. The quarter was marked by a pronounced increase in demand from downstream sectors such as cosmetics, pharmaceuticals, and nutraceuticals. This surge in demand was compounded by supply chain disruptions, notably from major global producers facing unexpected plant shutdowns leading to constrained supply and heightened import costs. Geopolitical tensions and trade flow disruptions further exacerbated the supply issues, compelling regional suppliers to increase their quoted prices.
Focusing on the United Arab Emirates, the pricing environment for Heavy Liquid Paraffin was positively charged, with the UAE witnessing the most substantial price changes in the MEA region. The overall trend was characterized by a steady rise in prices due to seasonal demand peaks and increased procurement activities. The correlation between heightened demand and limited supply created an undersupplied market scenario, forcing domestic suppliers to adjust prices upward significantly. The price change from the previous quarter in 2024 was recorded at 1%, while a comparison between the first and second halves of Q2 showcased a 3% increase, underlining the escalating price trend.
The latest quarter-ending price for Heavy Liquid Paraffin (USP) CFR Jebel Ali in the UAE stood at USD 1410/MT, reflecting a robust and positive pricing environment. This consistent uptrend underscores the impact of supply constraints, increased demand, and ongoing market disruptions, solidifying the UAE's position as a critical player in the Liquid Paraffin market in the MEA region.
