For the Quarter Ending September 2025
North America
• In United States, the MS Drum Price Index rose in Q3 2025, influenced by rising costs and varied demand.
• MS Drum production costs rose from a 3% Consumer Price Index increase year-over-year in September 2025.
• Producer Price Index for final demand rose 2.6% year-over-year in August 2025, elevating input costs.
• Industrial production growth was very low at 0.1% year-over-year in September 2025, indicating weak chemical input demand.
• Strong retail sales, up 5.42% year-over-year in September 2025, supported MS Drum demand in consumer applications.
• The 4.3% unemployment rate in September 2025 bolstered consumer spending, positively impacting MS Drum demand.
• Consumer confidence declined to 94.2 in September 2025, suggesting softening discretionary spending for MS Drum products.
• The MS Drum Price Index is forecast to remain elevated due to persistent cost pressures despite varied demand indicators.
Why did the price of MS Drum change in September 2025 in North America?
• MS Drum production costs increased from a 3% Consumer Price Index rise year-over-year in September 2025.
• Producer Price Index for final demand rose 2.6% year-over-year in August 2025, elevating manufacturing expenses.
• Demand was influenced by strong retail sales (5.42%) and low industrial production (0.1%) in September 2025.
APAC
• In China, the MS Drum Price Index fell quarter-over-quarter in Q3 2025, driven by deflationary pressures and market oversupply.
• MS Drum production costs faced downward pressure in Q3 2025 as Northeast Asian naphtha feedstock costs declined.
• Industrial production expanded 6.5% in September 2025, supported by 3% retail sales, yet the Manufacturing Index was Contracting.
• Elevated chemical inventories in Q3 2025 reflected global overcapacity, impacting MS Drum demand.
• Consumer confidence at 89.6, a -0.3% Consumer Price index, and a stable 5.2% unemployment rate in September 2025 indicated mixed demand signals.
• Automotive demand strengthened significantly in Q3 2025, with surging NEV sales, providing some support for MS Drum applications.
• The MS Drum Price Index faced downward pressure from a -2.3% Producer Price Index decline in September 2025, reflecting weak producer pricing.
• The MS Drum Price Forecast suggests continued stability with potential for further downward adjustments given persistent oversupply.
Why did the price of MS Drum change in September 2025 in APAC?
• China's Manufacturing Index was Contracting in September 2025, reducing industrial demand for MS Drums.
• Northeast Asian naphtha feedstock costs experienced downward pressure in Q3 2025, lowering production expenses.
• Elevated chemical inventories and a -0.3% Consumer Price Index in September 2025 contributed to market oversupply.
Europe
• In Germany, the MS Drum Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting manufacturing and lower producer prices.
• MS Drum production costs faced pressure from high operating and energy costs, despite a -1.7% Producer Price Index decrease in September 2025.
• Demand for MS Drums was dampened by contracting manufacturing activity and a -1% industrial production decline in September 2025.
• The MS Drum demand outlook remained subdued due to weak chemical product demand and persistent customer caution in Q3 2025.
• German chemical industry inventories showed high levels, with capacity utilization significantly below profitability thresholds in Q3 2025.
• Trade flows for German chemicals experienced significant declines in sales outside Europe and decreasing exports to the US in Q3 2025.
• High energy costs, influenced by tight natural gas market fundamentals, continued to challenge German chemical producers in Q3 2025.
• The MS Drum Price Index forecast considers stable 6.3% unemployment and modest 0.2% retail sales growth in September 2025.
Why did the price of MS Drum change in September 2025 in Europe?
• Producer prices decreased by -1.7% in September 2025, reducing MS Drum manufacturing input costs.
• Contracting manufacturing activity and a -1% industrial production decline dampened MS Drum demand.
• High operating costs and 2.4% Consumer Price index in September 2025 maintained upward pressure on production expenses.
