For the Quarter Ending December 2025
North America
•Mineral Turpentine Oil Price Index softened in Q4 2025, reflecting balanced supply and subdued demand from key downstream segments such as paints & coatings and industrial cleaning. Domestic and imported inventories remained adequate, limiting upward pricing pressure.
•Mineral Turpentine Oil Spot Price declined toward the end of the quarter, as ample product availability and competitive import offers eased prompt market tightness and moderated premiums.
•Mineral Turpentine Oil Production Cost Trend stayed muted, with relatively stable crude oil benchmarks and light distillate feedstock costs reducing cost-push pressure on regional producers, keeping pricing power limited.
•Mineral Turpentine Oil Demand Outlook remained moderate, with stable but unspectacular demand from paints, varnishes, degreasing applications, and adhesives, as construction and industrial maintenance activity slowed late in the year.
•Mineral Turpentine Oil Price Forecast indicates limited near-term upside, with the market expected to remain range-bound into early 2026 given balanced fundamentals and only gradual seasonal improvement in downstream activity.
•Comfortable domestic inventory positions and steady production pressured offers at North American terminals, reinforcing the downward trend in the regional Price Index by quarter-end.
Why did the price of Mineral Turpentine Oil change in December 2025 in North America?
•Balanced domestic inventories and competitive import offers eased prompt supply concerns, damping the Mineral Turpentine Oil Spot Price.
•Stable feedstock and crude oil benchmark costs limited production cost increases, weakening pricing power for sellers.
•Slower late-year demand from paints, coatings, and industrial maintenance segments reduced urgency to restock, contributing to a softer Price Index.
APAC
• In India, the Mineral Turpentine Oil Price Index rose by 2.73% quarter-over-quarter, supported by firmer demand.
• The average Mineral Turpentine Oil price for the quarter was approximately USD 969.54/MT, reported industry-wide.
• Mineral Turpentine Oil Spot Price firmed on tight prompt supplies while Price Index signalled reduced inventories.
• The Mineral Turpentine Oil Price Forecast indicates modest upside into early Q1, supported by coatings restocking.
• Mineral Turpentine Oil Production Cost Trend remained muted as discounted crude imports contained marginal production costs.
• Mineral Turpentine Oil Demand Outlook remains steady driven by paints and solvent consumption despite softer automotive.
• Price Index reflected weaker export arbitrage and moderate inventories, supporting domestic availability but limiting external premiums.
• Refiners kept allocations stable with disciplined nominations while cyclone-related logistic issues caused localized freight premiums.
Why did the price of Mineral Turpentine Oil change in December 2025 in APAC?
• Reduced export flows and tactical allocations tightened prompt supply, lifting domestic price pressure during December.
• Late-month crude recovery increased marginal production costs while earlier crude softness muted cost pressure.
• Cyclone-related logistic disruptions and selective buyer replenishment patterns caused localized premiums and uneven spot liquidity.
Europe
•Mineral Turpentine Oil Price Index in Europe trended lower through Q4 2025, as steady supply and moderate downstream buying kept regional prices under pressure.
•Mineral Turpentine Oil Spot Price softened in December 2025, with abundant inventories and stable import arrivals easing prompt availability and reducing upward price momentum.
•Mineral Turpentine Oil Production Cost Trend remained broadly stable, as limited volatility in crude and feedstock costs prevented significant cost-push support for higher prices.
•Mineral Turpentine Oil Demand Outlook was mixed, supported by routine consumption in paints & coatings and industrial solvents, but dampened by slower construction and renovation projects near year-end.
•Mineral Turpentine Oil Price Forecast suggests restrained movement near term, with only modest recovery expected in early 2026 if downstream restocking strengthens gradually.
•Competitive import flows and comfortable inventories across European hubs limited spot tightness, contributing to the weakening of the regional Price Index through the quarter.
Why did the price of Mineral Turpentine Oil change in December 2025 in Europe?
•Abundant supply and steady import arrivals eased prompt tightness, reducing upward pressure on the Mineral Turpentine Oil Price Index.
•Stable production cost fundamentals with limited feedstock volatility prevented cost-push support for higher pricing.
•Cautious downstream procurement from paints, coatings, and industrial solvent sectors softened demand, contributing to the price decline.
For the Quarter Ending September 2025
North America
• The MTO Price Index in North America for Q3 2025 held mostly flat to mildly soft, reflecting a supply demand balance with cautious downstream uptake.
• MTO Spot Price in September saw slight easing, as distributors offered discounts to move inventory accumulated earlier in the quarter.
• The MTO Production Cost Trend remained relatively firm, due to stable crude / feedstock and energy costs, limiting downward cost pressure.
• MTO Price Forecast suggests a sideways trajectory in the near term, unless paint/coating demand revives or supply is disrupted.
• MTO Demand Outlook remained tepid: construction, architectural coatings, and industrial maintenance sectors showed only modest procurement.
• Imports and domestic production both contributed to ample availability, which constrained upward movements in the Price Index.
• Inventory buffers across distributor networks and pigment/chemical downstream units moderated volatility and discouraged aggressive pricing.
Why did the price of MTO change in September 2025 in North America?
In September, the Price Index dipped modestly as downstream buyers delayed fresh orders amid weak demand, while import pressure and inventory liquidation nudged spot offers lower.
APAC
• In India, the Mineral Turpentine Oil Price Index rose by 5.56% quarter-over-quarter, reflecting tighter supply.
• The average Mineral Turpentine Oil price for the quarter was approximately INR 83216.67/MT, reported ex-Mumbai.
• Mineral Turpentine Oil Spot Price tightened in July due to refinery outages and transport bottlenecks.
• Mineral Turpentine Oil Price Forecast shows Q4 upside as buyers procure ahead of festive demand.
• Mineral Turpentine Oil Production Cost Trend rose with crude price increases, pressuring margins and costs.
• Mineral Turpentine Oil Demand Outlook remains subdued due to monsoon, weaker construction and paints activity.
• Mineral Turpentine Oil Price Index movement reflected BPCL revisions, inventory destocking, and higher import costs.
• Suppliers adjusted offers conservatively, with surplus inventories and cautious procurement limiting transactional volumes and pressure.
Why did the price of Mineral Turpentine Oil change in September 2025 in APAC?
• Refinery maintenance and outages tightened spot availability, supporting upward pressure on regional prices in September.
• Rising crude and freight costs increased production and import costs, translating into firmer supply-side pricing.
• Muted construction demand and cautious buying amid inventory digestion limited transactional volumes, tempering price gains.
Europe
• In Europe, the MTO Price Index eased somewhat in Q3 2025, reflecting soft downstream demand and comfortable supply levels.
• MTO Spot Price showed limited upside, as downstream coatings and solvent users remained cautious and largely aligned with contractual volumes.
• The MTO Production Cost Trend held steady; feedstock and refining parameters saw no abrupt shifts, which prevented cost spikes.
• MTO Price Forecast points to modest softness or lateral movement ahead, unless seasonal coatings demand or supply disruptions intervene.
• MTO Demand Outlook was weak to moderate: demand from decorative coatings, wood finishes, and industrial solvents was subdued.
• Competitive imports and intra European supply flows kept local offers in check, preventing sharp rises in the Price Index.
• Distributor and formulators’ inventories remained elevated, which dampened incentive for spot buying and upward pressure.
Why did the price of MTO change in September 2025 in Europe?
In September, the Price Index registered a mild decline because downstream demand stayed soft, inventory overhang persisted, and no significant supply constraints emerged to push offers upward.
For the Quarter Ending June 2025
North America
• The Price Index of Mineral Turpentine Oil (MTO) in North America witnessed a downward trend over Q2 2025, driven by subdued demand from the paints, coatings, and industrial solvent sectors, alongside steady supply levels across the region.
• In April, the Price Index remained stable, as production levels in the U.S. Gulf Coast and imports from Latin America maintained sufficient supply. However, downstream consumption lagged due to below-average construction and remodeling activity during the early spring season.
• In May, the Price Index began to ease, as end-users reduced their spot purchases amid bloated inventories and slow-moving downstream sales. Cooler-than-expected weather in several key states further stalled paint application and solvent demand.
• In June, the Price Index declined further, as sentiment remained cautious despite the start of peak construction season. Many buyers limited procurement to contractual volumes amid limited visibility on future demand recovery.
• Overall, in Q2 2025, the North American MTO market remained oversupplied, with restrained activity from the architectural coatings, industrial maintenance, and adhesives sectors. This market imbalance continued to apply downward pressure on prices across the region.
Why did the price of MTO change in July 2025 in North America?
The price index of Mineral Turpentine Oil (MTO) increased in July 2025 across North America due to:
• Firming demand from the paints, coatings, and solvent sectors, as construction activity and seasonal renovation projects accelerated across the U.S. and Canada during peak summer months.
• Lower production volumes at select Gulf Coast facilities, driven by maintenance-related slowdowns and feedstock optimization strategies, which slightly constrained regional supply.
• Rising upstream costs, as fluctuations in crude oil prices and refinery output pushed production costs higher, prompting price adjustments downstream.
• Increased spot market activity, with distributors and end-users advancing purchases to secure material ahead of further potential price rises.
• Transport-related inefficiencies, including railcar delays and tighter trucking capacity in certain inland markets, which increased delivery costs and supported overall price elevation.
Europe
• The Price Index of Mineral Turpentine Oil (MTO) in Europe declined over the quarter, amid lackluster demand from the paints and coatings industry and ample product availability across Western and Central Europe, which weighed heavily on market sentiment.
• In April, the Price Index remained largely stable, as consistent domestic production and steady imports from North Africa and the Middle East kept supply levels comfortable. Demand remained soft, particularly in Northern Europe, due to subdued construction activity and a cool start to spring.
• In May, the Price Index moved downward, as buyers in Germany, France, and the Benelux region scaled back purchases amidst growing inventories and slower-than-expected project starts. Feedstock price pressure eased slightly, adding to the overall bearishness.
• In June, the Price Index continued its downward trend, as construction activity remained below seasonal norms, while a cautious economic outlook and fiscal tightening across several European economies dampened downstream purchasing volumes.
• Throughout Q2 2025, the European MTO market was marked by oversupply and weak end-user demand, particularly from the decorative coatings and adhesives sectors. Despite stable upstream costs, the muted consumption environment and risk-averse buying behavior led to consistent downward adjustments in pricing.
Why did the price of MTO change in July 2025 in Europe?
The price index of Mineral Turpentine Oil (MTO) increased in July 2025 across Europe due to:
• Strengthening demand from the decorative coatings and industrial solvent sectors, as summer construction and maintenance projects ramped up across Western and Southern Europe.
• Reduced output from selected regional producers, owing to planned maintenance and operational slowdowns, which slightly tightened local supply.
• Upward movement in feedstock and energy input costs, driven by fluctuations in crude oil markets and refining margins, contributed to higher production costs for MTO.
• Proactive buying behavior among downstream players, with distributors and end-users securing additional volumes in anticipation of continued price firmness.
• Minor logistical constraints in inland transport and port handling, especially in central Europe, led to longer leading times and added logistical surcharges that fed into final product pricing.
APAC
• The Price Index of Mineral Turpentine Oil (MTO) in the APAC region declined by 4.6% quarter-on-quarter in Q2 2025, primarily due to prolonged supply overhang and persistently weak downstream demand from the paints and coatings industries, which contributed to bearish price sentiment across India.
• In April, the Price Index remained stable, as major producers like BPCL held their quotations unchanged, while domestic availability stayed ample due to stock liquidation from the previous financial year, despite easing production costs and subdued export opportunities caused by intra-Asia port congestion.
• During May, the Price Index dropped by approximately 2.5%, driven by a downward revision in domestic prices by key producer BPCL and weak procurement activity, as buyers delayed spot purchases amid expectations of further discounts. Oversupply conditions intensified due to continued low offtake from downstream sectors.
• In June, the Price Index declined by a further 1.2%, despite rising crude oil prices, as abundant inventory levels and another round of price cuts from BPCL led to cautious purchasing behavior. Early monsoon disruptions caused minor logistical delays but did not significantly affect overall product availability.
• Across Q2 2025, the APAC Price Index for MTO faced downward pressure, as demand remained subdued due to declining housing activity and a seasonal slowdown in construction, which suppressed offtake from decorative paints and waterproofing segments, further reinforcing the oversupplied market environment.
Why did the price of MTO change in July 2025 in APAC?
The price index of Mineral Turpentine Oil (MTO) increased in July 2025 across the APAC region due to the following key factors:
• Rising demand from the paints and coatings sector, particularly in India and Southeast Asia, as construction and renovation activities picked up pace following the monsoon onset and improved weather conditions in select regions.
• Tightening regional supply, caused by lower-than-expected production rates at some domestic facilities due to maintenance turnarounds, especially in South Korea and parts of Southeast Asia.
• Higher upstream feedstock costs, as fluctuations in crude oil and refinery output led to costlier raw material inputs for MTO production, which were passed downstream.
• Increased procurement activity by distributors and traders, anticipating potential price hikes in the following weeks amid restocking initiatives and tightening spot availability.
• Port congestion and container imbalances, particularly in major Chinese and Southeast Asian ports, caused minor delivery delays and raised logistics costs, which contributed to overall pricing pressure.
For the Quarter Ending March 2025
North America
The North American MTO market exhibited a mixed performance in Q1 2025. Supply remained stable throughout the quarter, with excess inventories preventing price hikes despite weak feedstock market activity and low-priced imports. Freight rate surges from Asia had a minimal impact due to abundant supply and subdued demand. Demand from the downstream paints and coatings sector was weak, largely due to severe winter disruptions in construction activity and delayed projects.
MTO supply continued to be adequate with steady domestic production and lower freight costs. However, competition in the global market increased, with capacity additions in China impacting the market. Severe cold weather disrupted petrochemical operations, but facilities began to normalize. Demand remained weak in the construction and coatings industries due to challenges in the housing market and delayed projects.
Overall, MTO prices remained stable amid weak feedstock prices and reduced demand from the paints and coatings sector. Global supply oversaturation and intensified export competition contributed to continued price declines. While U.S. manufacturing activity showed slight improvement, construction sector demand remained weak, dampening the MTO market prospects.
APAC
The APAC Mineral Turpentine Oil (MTO) market experienced a mostly bullish trend in Q1 2025, with prices witnessing a net gain of approximately 2.5% by the end of the quarter. January began with stable prices, but a rise in production costs driven by increasing crude oil prices exerted upward pressure. This was passed on to downstream buyers, with demand receiving partial support from the wedding season, although the construction sector remained sluggish. In February, MTO prices increased slightly due to tight supply amid low inventory levels, despite a decline in crude oil prices. Production costs fell, but limited supply due to refinery turnarounds and increased exports contributed to higher prices. However, demand remained subdued, especially after the wedding season concluded, and lower residential real estate activity continued to dampen market prospects. In March, prices declined, driven by a decrease in crude oil costs and strong supply-side fundamentals. Major suppliers implemented price reductions, contributing to the bearish trend. Weak demand from the paints and coatings and construction sectors further pressured the market, resulting in cautious procurement activity.
Europe
The European MTO market exhibited a mixed performance in Q1 2025. Supply remained stable throughout the quarter, with excess inventories preventing price hikes despite weak feedstock market activity and low-priced imports. Freight rate surges from Asia had a minimal impact due to abundant supply and subdued demand. Demand from the downstream paints and coatings sector was weak, largely due to severe winter disruptions in construction activity and delayed projects. MTO supply continued to be adequate with steady domestic production and lower freight costs. However, competition in the global market increased, with capacity additions in China impacting the market. Severe cold weather disrupted petrochemical operations, but facilities began to normalize. Demand remained weak in the construction and coatings industries due to challenges in the housing market and delayed projects. Overall, MTO prices remained stable amid weak feedstock prices and reduced demand from the paints and coatings sector. Global supply oversaturation and intensified export competition contributed to continued price declines. While European manufacturing activity showed slight improvement, construction sector demand remained weak, dampening the MTO market prospects.
