For the Quarter Ending March 2025
North America
In Q1 2025, North America's Nitrosylsulfuric Acid (NSA) market faced challenges due to economic headwinds and shifts in key industries. The U.S. economy experienced a significant slowdown, with some estimates indicating a contraction in GDP during the first quarter. This economic downturn was partly attributed to businesses stockpiling goods ahead of increased tariffs, leading to a record-high goods trade deficit in March.
The pharmaceutical industry, however, showed resilience. Pfizer reported strong first-quarter 2025 earnings despite a sharp 75% decline in Paxlovid sales, with adjusted earnings surpassing analysts’ expectations. The textile sector faced uncertainties due to fluctuating demand and increased production costs, influenced by proposed import tariffs impacting global fashion supply chains. These factors contributed to a complex landscape for NSA demand, with the pharmaceutical sector providing some stability amidst broader economic challenges.
Asia
In Q1 2025, Asia's NSA market experienced moderate price fluctuations, influenced by the region's robust economic performance and key industry dynamics. Asia, led by India, is projected to contribute about 60% of global growth in 2025, with the region expected to grow by 4.3%. This economic strength supported steady demand for NSA, particularly in countries like India and Southeast Asian nations.
India's textile sector showed resilience, with exports increasing by 4.15% year-on-year in Q1 FY2025, driven by demand from CIS and South Asian markets. The pharmaceutical industry also registered strong growth, with major companies reporting a 10% year-on-year increase in Q2 FY2025, largely driven by performance in North America and the domestic market. These developments contributed to sustained demand for NSA, a key chemical used in both textile processing and pharmaceutical manufacturing.
Europe
In Q1 2025, Europe's NSA market experienced relative stability, influenced by the region's modest economic growth and key industry performance. The European Central Bank projects real GDP growth of 1.0% in 2025. This steady economic environment supported consistent demand for NSA across the continent. However, geopolitical issues spurred uncertainties in the market, which affected the outlook of downstream industries.
The pharmaceutical sector, particularly in the production of cancer treatments and dermatology medications, was a significant driver for NSA demand. The textile industry also saw stable demand, especially from southern European countries, as production of winter apparel and preparation for spring collections increased. Despite global logistical challenges, the supply chain remained relatively intact, with minimal disruptions noted. Freight rates, however, remained a concern, putting upward pressure on prices, especially in the colder months.
For the Quarter Ending December 2024
North America
In Q4 2024, the price of Nitrosylsulfuric Acid in North America experienced moderate fluctuations, primarily driven by the performance of key industries such as pharmaceuticals, textiles, and agrochemicals.
As the quarter progressed, demand from the pharmaceutical sector showed significant growth, particularly in the production of active pharmaceutical ingredients (APIs) for treatments such as oncology and dermatology. The expansion of biopharmaceutical manufacturing in the region and a strong pipeline of new drugs kept demand for high-value chemical intermediates, including Nitrosylsulfuric Acid, elevated. In addition, demand from the textile sector showed seasonal upticks, as manufacturers prepared for the winter and spring fashion seasons, thus fueling demand for chemicals used in textile processing.
The U.S. textile industry remained strong, supported by robust export growth to regions like Europe and Asia. Logistics challenges, including ongoing container shortages and rising freight costs, slightly impacted the supply chain but did not significantly disrupt availability, with most supply coming from domestic producers. The overall pricing trend in the region was upwards in November and December, driven by the combination of steady pharmaceutical demand and seasonal textile production.
APAC
In Q4 2024, the price of Nitrosylsulfuric Acid in the APAC region, particularly in India, saw a moderate upward trend, driven by sustained demand from key industries such as textiles, pharmaceuticals, and chemicals. The textile sector, despite facing challenges like fluctuating cotton prices and logistics disruptions, continued to show resilience, particularly due to strong export growth, which increased by 17.3% in September 2024. This buoyed the demand for Nitrosylsulfuric Acid, a key chemical used in textile processing, contributing to a 1.1% price increase in October. In November, the price surged by 3.2%, fueled by heightened demand from the pharmaceutical sector, which benefited from the growth in dermatology, oncology, and anti-cardiac drugs. The continued expansion of the pharmaceutical industry and increasing exports of active pharmaceutical ingredients (APIs) drove the demand for high-value intermediates like Nitrosylsulfuric Acid. While supply remained steady with stable imports and domestic production, logistical challenges and fluctuating freight rates had a minor impact on the availability of the chemical.
Europe
In Europe, the price of Nitrosylsulfuric Acid in Q4 2024 followed an upward trajectory, primarily driven by sustained demand from the pharmaceutical, textile, and coatings industries. The pharmaceutical sector, which has seen an uptick in investment, especially in the production of cancer treatments and dermatology medications, was a significant driver for the chemical. As Europe continues to be a key hub for pharmaceutical manufacturing, the steady demand for intermediates like Nitrosylsulfuric Acid remained firm throughout the quarter. The textile sector also saw stable demand, particularly from southern European countries, as production of winter apparel and preparation for spring collections increased. The European textile industry benefited from strong domestic demand and exports to North America and other markets. The demand for Nitrosylsulfuric Acid in textile production supported prices through a moderate increase in October and November. The coatings and agrochemical sectors also contributed to demand, with increased activity in the agricultural and automotive industries in Europe. Despite global logistical challenges, the supply chain remained relatively intact, with minimal disruptions noted. Freight rates, however, remained a concern, putting upward pressure on prices, especially in November and December as colder months increased transportation challenges.
For the Quarter Ending September 2024
North America
In Q3 2024, the Nitrosylsulfuric Acid prices remained relatively stable within a narrow range, influenced by various concurrent factors. The U.S. economy displayed mixed signals, with underlying resilience offset by persistent inflation worries and geopolitical instability. Supply conditions were driven by steady manufacturing output and shifting trade patterns.
The Producer Price Index (PPI) for manufacturing industries dipped slightly from 249.624 in Q2 to 248.383 in Q3, indicating modest cost savings for producers. Inventory replenishment after significant drawdowns earlier in the year supported economic recovery, with Q2 GDP growth reaching 3.0% and forecasted annual growth at 2.7%. Consumer activity and business investments, propelled by initiatives like the CHIPS Act, sustained demand, while inflation eased below 3.0% in July.
Nevertheless, ongoing geopolitical tensions, such as conflicts in Ukraine and the Middle East, alongside potential import tariffs, posed risks to supply chains and trade flows. Although the Fed’s planned interest rate cuts are expected to boost spending and growth, uncertainties in labor markets and trade policies could influence the supply outlook moving into 2025.
Asia
The third quarter of 2024 for Nitrosylsulfuric Acid in the APAC region saw a notable increase in prices, driven by various factors influencing the market dynamics. Robust industrial activity, growing demand in key sectors, and rising infrastructure developments played a significant role in pushing prices upwards. Despite a slowdown in certain segments, overall economic indicators remained positive, fueling demand for chemicals used in manufacturing and construction. Additionally, increased export orders in sectors like textiles further boosted the demand for Nitrosylsulfuric Acid. In India, the market experienced the most significant price changes, with prices steadily increasing throughout the quarter. Overall trends indicated a positive pricing environment, with seasonality and correlation in price changes showcasing a consistent upward trajectory. The quarter-ending price for Nitrosylsulfuric Acid Ex-Mumbai in India stood at USD 220/MT, reflecting a 6% increase from the first half of the quarter. No disruptions or plant shutdowns were reported during this period.
Europe
During Q3 2024, Nitrosylsulfuric Acid prices in Europe fluctuated within a narrow range, influenced by economic uncertainties linked to the ongoing conflict in West Asia and sluggish growth in both Europe and the U.S. Rising freight costs, container shortages, and logistical issues were prominent. Shipping giants such as MSC and CMA CGM raised FAK rates to as high as $6,500 per container, driven by space limitations and added operational fees. Delays due to Red Sea disruptions and Singapore port congestion further complicated the situation. Air freight rates from Northeast Asia to Europe also spiked, fueled by booming e-commerce and semiconductor demand, with spot rates rising 40% year-over-year. Despite efforts to expand capacity, the imbalance between outbound and return loads persisted. With rising geopolitical tensions and seasonal demand, freight market volatility is likely to extend into Q4. Economically, Europe experienced stagnation in Q3, as Germany’s industrial sector struggled with weak output, high energy costs, and falling exports, contributing to broader challenges across the eurozone.
For the Quarter Ending June 2024
North America
In Q2 2024, the US Nitrosylsulfuric Acid market experienced a volatile landscape across North America. Initially, prices showed a bullish trend driven by heightened purchasing needs in the downstream textile sector, spurred by shifting seasonal demands. However, this positive momentum was short-lived. As the quarter progressed, demand conditions deteriorated significantly.
The broader US chemical sector struggled with low production levels, particularly affecting the demand for intermediate products like Nitrosylsulfuric Acid. This was compounded by mounting uncertainties surrounding the upcoming presidential elections and rising interest rates, which dampened consumer sentiment and led to minimal procurement activities, which acted as a catalyst for the depreciation in the prices of Nitosylsulfuric Acid
Although production in the US remained positive, the growth was only marginal. This limited expansion translated into a stagnation in procurement activities, leaving the market with little to no improvement. Overall, despite an initial uptick, the second quarter ended with subdued market conditions, reflecting a broader trend of cautious consumption and restrained industrial activity.
APAC
In Q2 2024, the pricing environment for Nitrosylsulfuric Acid in the APAC region faced significant downward pressure due to several key factors. Despite unseasonal demand spikes and rising global freight charges, the market remained weak, driven by a well-supplied market and tepid demand. Furthermore, the drop in global crude oil prices added to the downward pressure on Nitrosylsulfuric Acid and other commodities.
Focusing on India, where the price changes were most pronounced, the market experienced a sharp decline. An oversupply situation, marked by high inventory levels and balanced supply, led to a notable -7% drop in prices from the previous quarter. Seasonal factors, such as the start of the monsoon season, further reduced demand, exacerbating the decline. Prices in the latter half of the quarter fell by -19% compared to the first half, reflecting ongoing bearish sentiment.
The market showed resilience in terms of supply chain stability, with no major plant shutdowns or disruptions reported. By the end of the quarter, Nitrosylsulfuric Acid was priced at USD 204/MT Ex-Mumbai, India, continuing the trend of decreasing prices driven by oversupply and subdued demand.
Europe
In Q2 2024, the European Nitrosylsulfuric Acid market grappled with a predominantly bearish trend. Persistent weak demand from downstream sectors, particularly in organic chemical manufacturing, continued to drag down prices. The sluggish demand environment compelled European suppliers to take measures to streamline their inventories of chemical intermediates, including Nitrosylsulfuric Acid. This strategic move led to an oversupply of the product in the market, with excess inventories circulating and boosting supply levels. As a result of this surplus, the market experienced increased competition, which further pressured prices downward. The heightened availability of Nitrosylsulfuric Acid, due to the larger inventory levels, was not met with a proportional increase in procurement activities. Chemical manufacturers, facing low demand across the board, displayed minimal interest in acquiring additional stock. The only factor offering some relief from the persistent downturn was seasonal demand shifts. At the start of the quarter, seasonal changes briefly spurred purchasing activities in the downstream textile industry. However, this temporary boost was insufficient to alter the overall market sentiment or significantly impact procurement levels for Nitrosylsulfuric Acid. Overall, the quarter ended with a market characterized by excess supply and low demand, creating a challenging environment for both producers and suppliers. This situation underscored the ongoing struggle within the European Nitrosylsulfuric Acid market to find balance amidst a backdrop of persistent price pressure and subdued industrial activity.
