For the Quarter Ending September 2025
North America
• In United States, the Morpholine Price Index rose quarter-over-quarter in Q3 2025, driven by increased input costs.
• Production costs increased in Q3 2025, with CPI up 3.0% YoY (September) and PPI rising 2.6% YoY (August).
• Morpholine demand outlook was weak in Q3 2025; industrial production grew only 0.1% YoY in September.
• Chemical inventories shrank in Q3 2025 due to accelerating destocking, impacting Morpholine supply.
• U.S. natural gas prices, a key feedstock, rose year-over-year in September 2025, increasing production expenses.
• New chemical orders, including foreign, dropped in Q3 2025, indicating reduced Morpholine trade flows.
• Consumer confidence declined to 94.2 in September 2025, dampening Morpholine demand in consumer applications.
• Motor vehicles and parts production increased in August 2025, offering positive demand signals for Morpholine derivatives.
Why did the price of Morpholine change in September 2025 in North America?
• Increased input and raw material costs, with CPI up 3.0% YoY in September, pressured Morpholine prices.
• Weak demand in major customer markets and falling new chemical orders in Q3 2025 exerted downward pressure.
• Accelerating destocking led to shrinking chemical inventories in Q3 2025, providing some price support.
Europe
• In Germany, the Morpholine Price Index fell quarter-over-quarter in Q3 2025, driven by weak industrial demand and lower production costs.
• Morpholine production costs trended lower in Q3 2025, influenced by a 1.7% year-over-year decline in producer prices in September.
• Ethylene and Naphtha feedstock costs eased in Q3 2025, reducing Morpholine manufacturing expenses.
• Morpholine demand outlook remained weak in Q3 2025, as Germany's Manufacturing Index was contracting.
• Industrial production declined 1.0% year-over-year in September 2025, reducing Morpholine demand.
• Overall chemical product demand in Germany showed softness in Q3 2025, with domestic and export orders weak.
• Retail sales increased 0.2% year-over-year in September 2025, offering slight support for consumer-facing Morpholine uses.
• Manufacturing inventories declined in August 2025, while German chemical exports decreased, impacting supply.
• The Morpholine Price Index is forecast to remain under pressure due to persistent weak industrial demand.
Why did the price of Morpholine change in September 2025 in Europe?
• Producer prices of industrial products fell 1.7% year-over-year in September 2025, reducing Morpholine production costs.
• Germany's Manufacturing Index was contracting in Q3 2025, leading to reduced industrial demand for Morpholine.
• Weakening chemical exports and ample ethylene inventories contributed to downward pressure on Morpholine prices.
APAC
• In China, the Morpholine Price Index fell quarter-over-quarter in Q3 2025, driven by weak industrial pricing power.
• Morpholine production costs were influenced by global overcapacity and tight global ammonia availability in Q3 2025.
• Demand for Morpholine was supported by strengthened automotive demand and expanded industrial output, which grew 6.5% year-on-year in September 2025.
• The Morpholine Price Index declined due to -0.3% CPI year-on-year in September 2025, reflecting deflationary pressures.
• The Manufacturing Index was contracting in September 2025, indicating reduced industrial activity.
• Retail sales increased 3.0% year-on-year in September 2025, indirectly boosting demand for consumer-facing applications.
• Consumer confidence remained pessimistic at 89.6 in September 2025, suggesting reduced spending on end products.
• Overall chemical overcapacity from China contributed to tight margins and impacted global markets throughout Q3 2025.
Why did the price of Morpholine change in September 2025 in APAC?
• Falling PPI year-on-year by -2.3% in September 2025 indicated weak industrial pricing power.
• Overall chemical overcapacity from China created tight margins for producers in Q3 2025.
• The Manufacturing Index contracting in September 2025 signaled reduced industrial activity.
