For the Quarter Ending September 2025
North America
• Masterbatch Spot Price in North America declined in September 2025, primarily due to subdued demand from automotive, construction, and consumer goods sectors.
• The Masterbatch Price Index for Q3 2025 showed a downward trend, reflecting oversupply and cautious procurement behavior across key polymer processing industries.
• Masterbatch Demand Outlook remained soft across the region. While packaging and agriculture showed resilience, automotive and building & construction sectors experienced slower activity, dampening overall consumption.
• The Masterbatch Production Cost Trend remained stable, supported by favorable resin prices (especially PP and PE) and steady energy costs. However, freight and regulatory compliance costs added marginal pressure.
• September’s price decline was driven by high inventory levels, weak spot demand from OEMs and converters, and competitive pricing from Asian suppliers.
• The Masterbatch Price Forecast for Q4 2025 suggests a potential rebound, supported by seasonal packaging demand and anticipated recovery in consumer goods manufacturing.
• Key downstream uses of masterbatch in North America include packaging, automotive components, building materials, consumer goods, textiles, and agricultural films.
Why did the price of Masterbatch change in September 2025 in North America?
• Automotive, construction, and consumer goods industries reduced procurement due to slower manufacturing activity, weakening spot demand.
• Excess stock across polymer processing facilities and distribution hubs led to price adjustments as suppliers sought to clear inventories.
• Lower-priced masterbatch shipments from Asian producers intensified market competition, pressuring domestic manufacturers to revise pricing downward.
APAC
• In China, the Masterbatch Price Index fell by 1.6% quarter-over-quarter in Q3 2025, due to balanced supply and demand.
• The average Masterbatch price for the quarter was approximately USD 1266.67/MT, reflecting stable demand and contained feedstock costs.
• Masterbatch Spot Price remained in a narrow range around prior levels in Q3 2025, reflecting balanced supply and demand.
• Masterbatch Price Forecast suggests sideways movement into Q4 2025 as feedstock costs stabilize and exports moderate.
• Masterbatch Production Cost Trend in China shows neutral pressure with flat carbon black costs and steady polypropylene.
• Masterbatch Demand Outlook remains stable with automotive, packaging, and electronics driving steady consumption in APAC.
• Masterbatch Price Index movements align with regional producers; price margins pressure pressured by port inventories.
• Term structure and regional competition from other Asian exporters weigh on Tianjin-origin offers, constraining gains.
• Elevated port stocks and restocking cycles may trigger mild discounts to clear inventories in upcoming weeks.
Why did the price of Masterbatch change in September 2025 in APAC?
• Supply-demand dynamics remained balanced through September, limiting volatility as downstream demand stayed steady across automotive, packaging, and electronics.
• Cost pressures from carbon black and energy inputs were subdued, preventing material price accelerations in APAC.
• Logistics stability and port inventories supported predictable pricing, avoiding sharp discounts despite modest demand shifts.
Europe
• Masterbatch Spot Price in Europe rose modestly in September 2025, supported by firm demand from packaging and regulatory-driven applications.
• The Masterbatch Price Index for Q3 2025 showed a stable-to-firm trend, reflecting the tight supply of specialty grades and steady procurement from recyclers and converters.
• Masterbatch Demand Outlook remained strong across Europe, driven by increased use in packaging, consumer goods, textiles, and agriculture, especially in Germany, France, and Benelux regions.
• The Masterbatch Production Cost Trend remained steady, supported by slightly lower resin costs and contained energy inputs. However, logistics and sustainability compliance costs added upward pressure.
• September’s price increase was primarily due to the tight supply of PCR-compatible and additive masterbatches, firm offtake from packaging trials ahead of the EU’s PPWR regulations, and limited availability of titanium dioxide-based white masterbatch.
• The Masterbatch Price Forecast for Q4 2025 suggests continued firmness, supported by seasonal restocking and expanding demand for sustainable and high-performance formulations.
• Key downstream uses of masterbatch in Europe include packaging, textiles, automotive interiors, agriculture films, consumer electronics, and flame-retardant applications.
Why did the price of Masterbatch change in September 2025 in Europe?
• Limited availability of PCR-compatible and additive masterbatches, especially white grades containing titanium dioxide, constrained supply and pushed prices upward.
• Strong offtake driven by packaging trials ahead of the EU’s Packaging and Packaging Waste Regulation (PPWR) supported consistent procurement activity.
• Increased transportation expenses and sustainability-related compliance costs added marginal pressure to production costs, contributing to the price rise.
For the Quarter Ending June 2025
Asia-Pacific (APAC)
• The Masterbatch Price Index in China decreased by 1.7% quarter-on-quarter, holding at approximately USD 1,280 per tonne FOB Tianjin as of the week ending June 27.
• Why did the price of Masterbatch change in July 2025 in China?
Prices stayed steady in early July as suppliers entered Q3 with comfortable inventories and consistent NEV-related demand.
• The Masterbatch Price Forecast for Q3 suggests rangebound movement, supported by strong NEV-linked consumption, resilient packaging-sector demand, and stable carbon black costs.
• The Masterbatch Production Cost Trend remained largely flat in Q2. Upstream carbon black prices stabilized in May and June, while access to carrier resins and additives was consistent.
• The Masterbatch Demand Outlook was steady throughout the quarter. NEV production rose nearly 37% year-on-year in May, lifting demand for functional masterbatches—especially flame-retardant, antioxidant, and heat-resistant grades.
• China’s packaging and construction sectors also maintained regular off-take, particularly for snack-packaging and appliance housing applications.
• Demand for agricultural film masterbatches remained seasonally strong, and consumer-goods orders continued at a moderate pace. Export activity remained soft, impacted by U.S. and EU tariffs, though some exporters reported increased pre-tariff inquiries in May.
• Rising e-commerce and snack-packaging demand ahead of mid-year promotions also contributed to a short-term lift in orders.
North America
• The Masterbatch Price Index in North America showed a mixed trend through Q2 2025, as producers faced inconsistent demand across sectors and mild input cost variation.
• While packaging and automotive-related demand offered support, inventory caution and weaker construction activity led to subdued spot buying.
• Why did the price of Masterbatch change in July 2025 in North America?
In early July, the prices remained flat or showed minor fluctuations as buyers adjusted procurement based on stable resin availability and moderated outlooks in building materials and consumer goods.
• The Masterbatch Price Forecast for Q3 suggests neutral to modest upward bias, driven by potential restocking in the packaging sector and recovery in consumer electronics and home appliances.
• The Masterbatch Production Cost Trend in North America remained stable, with adequate access to carbon black and additives.
• Logistics costs fluctuated regionally, and converters monitored import alternatives from Asia amid competitive landed pricing.
• The Masterbatch Demand Outlook was mixed. While the automotive sector, particularly in EV components and interiors, remained a bright spot, demand from building materials and consumer durables lagged.
• Buyers maintained short cycle purchasing amid broader economic caution.
Europe
• The Masterbatch Price Index in Europe remained mostly stable during Q2 2025, reflecting mixed-to-muted sentiment across end-use industries.
• Import dependency from Asia continued, with Chinese and Indian cargoes fulfilling a large portion of demand.
• Why did the price of Masterbatch change in July 2025 in Europe?
Prices likely remained rangebound as buyers refrained from large-volume commitments, instead managing stocks tightly in response to flat retail trends and regulatory cost pressures.
• The Masterbatch Price Forecast for Q3 indicates steady-to-soft conditions, depending on resin pricing, freight rates, and demand from packaging and automotive segments.
• The Masterbatch Production Cost Trend in Europe remained sensitive to energy costs and compliance overheads.
• Importers benefited from stable Asian pricing, though currency fluctuations occasionally affected margins.
• The Masterbatch Demand Outlook in Europe was subdued. Packaging and electronics offered stable volume, but construction and durable goods faced pressure from inflation and sluggish retail sales.
• Overall, buyers remained cautious, maintaining lean inventories and deferring forward bookings.
For the Quarter Ending March 2025
North America
In the first quarter of 2025, the Masterbatch market in North America saw steady demand, largely supported by the automotive industry. However, the region remained heavily influenced by the global market dynamics, with APAC, particularly China, continuing to lead in supply and pricing trends. The demand for Masterbatch in North America was driven by automotive applications, including both traditional vehicles and electric vehicles (EVs), as well as the packaging and consumer goods sectors.
However, the market experienced moderate growth compared to the APAC region, where demand was significantly higher. The supply chain in North America was stable, although global uncertainties and higher transportation costs due to logistical challenges impacted the region's cost structures. Raw material prices for Masterbatch remained steady, reflecting trends seen in APAC markets.
Despite North America's stable demand from key sectors, the pricing power was somewhat limited due to the ongoing influence of China's well-established production capabilities and supply chain stability. In terms of production, North America maintained a balance between domestic manufacturing and imports, but the region's reliance on APAC for critical materials kept the market less volatile.
APAC
In the first quarter of 2025, the Masterbatch market in China experienced steady pricing and stable demand, primarily driven by the automotive sector, including the growing electric vehicle (EV) market. Throughout the period, supply chains were well-supplied, and raw material costs remained largely stable, contributing to a balanced market environment. Domestic production levels were high, with manufacturing facilities operating at optimal capacity, while inventory levels were sufficient to meet demand. However, there were fluctuations in demand due to the seasonal slowdown during the Lunar New Year holidays, which affected overall trade activity and procurement rates.
The automotive sector played a key role in supporting market confidence, particularly in the production of vehicle components such as interiors and exteriors. The surge in electric vehicle manufacturing and rising sales of new energy vehicles (NEVs) significantly boosted demand for Masterbatch. Despite some short-term slowdowns, the sector showed robust recovery post-holiday, with production and sales increasing substantially in February and March.
Supply chain operations faced minimal disruptions, with logistics improving as holiday-related constraints were lifted. However, weak international demand led to a decline in export orders, and local suppliers remained focused on domestic consumption. Despite challenges in the upstream carbon black market, the Masterbatch market maintained stability throughout the quarter, supported by strong demand in automotive applications.
Europe
In Europe, the Masterbatch market in the first quarter of 2025 mirrored global trends, with demand remaining robust in the automotive, packaging, and consumer goods sectors. However, the European market was largely reactive to the developments in APAC, where production levels were high, and pricing structures were set. Europe, facing competition from APAC manufacturers, particularly China, struggled with higher import costs and some supply chain constraints.
The automotive sector, especially with the rise in electric vehicle production, played a significant role in supporting Masterbatch demand in Europe. However, unlike the APAC region, Europe's automotive sector showed slower but steady growth. The demand for high-performance and lightweight materials, including Masterbatch, continued to rise with the growing emphasis on environmentally friendly materials for car interiors and exteriors.
The European market's overall demand remained stable but was tempered by the strong supply chain presence of APAC, which controlled much of the Masterbatch production. This, coupled with fluctuating transportation and import costs, created pressure on the European market, which saw stable but cautious growth in the first quarter of 2025. The influence of APAC remained prominent in determining price trends and supply stability in Europe.
For the Quarter Ending December 2024
North America
In Q4 2024, the masterbatch market in North America exhibited a steady price trajectory, primarily influenced by robust demand from the automotive and packaging industries. October began with a mild uptick in prices as production activity picked up after seasonal slowdowns.
The automotive sector, particularly in electric vehicles (EVs), saw strong growth, driven by increasing consumer preferences for lightweight, high-performance materials. Additionally, steady demand from the packaging industry for food-grade and durable solutions added to the positive market sentiment. While upstream cost pressures, such as rising carbon black prices, created challenges for manufacturers, efficient supply chain management helped mitigate significant price increases.
By November, supply chains were well-stocked, and manufacturers maintained optimal production levels to meet growing year-end demand, especially ahead of the holiday season. The packaging and consumer goods industries showed sustained demand, balancing any fluctuations in the automotive sector. December marked a period of stability as market fundamentals remained consistent. While feedstock prices, particularly carbon black, exhibited moderate increases, these were absorbed by robust downstream demand and strong industrial activity.
APAC
The masterbatch market in the APAC region demonstrated a gradual recovery in Q4 2024, influenced by fluctuations in demand and upstream cost dynamics. October began on a bearish note, with weak consumer demand and subdued activity in the downstream automotive sector contributing to declining prices. Adequate inventories built ahead of the Golden Week holiday further dampened procurement activities, and vehicle sales in China experienced decline year-on-year in September. However, stabilized costs of carbon black and moderate supply dynamics prevented significant price volatility. By November, demand fundamentals began to strengthen, supported by an uptick in automotive production, particularly in electric vehicles (EVs). The shift toward lightweight and high-performance materials in automotive manufacturing drove a 1.6% increase in masterbatch prices towards the end of the month. Upstream cost pressures from rising residual fuel oil and coal tar prices further bolstered pricing trends. In December, prices stabilized as balanced supply chains and steady consumer demand from the automotive and packaging industries offset any potential disruptions. Enhanced production capacity in domestic markets, coupled with the positive impact of government stimulus measures on China's manufacturing sector, ensured robust supply and demand equilibrium.
Europe
The masterbatch market in Europe in Q4 2024 experienced a mixed pricing trend, driven by varying economic conditions and industrial activity across the region. In October, the market remained relatively stable, supported by strong demand from the packaging and construction sectors. However, the automotive industry faced challenges due to subdued production activity, especially in internal combustion engine vehicles, as the region continued its transition toward electric mobility. Rising raw material costs, particularly for carbon black and polymers, exerted upward pressure on prices. Despite this, manufacturers managed to stabilize supply with efficient inventory management and steady production rates. By November, prices showed a modest increase as the automotive sector began recovering, buoyed by strong sales of EVs in Northern and Western Europe. Additionally, the packaging sector saw heightened demand driven by increased e-commerce activity and holiday season preparations. December saw steady price growth, supported by improved economic activity and firm demand across key sectors. Although rising energy costs and feedstock prices posed challenges, Europe's focus on sustainable and high-performance materials ensured a consistent market outlook.
