For the Quarter Ending September 2025
North America
• In the United States, the O-Cresol Price Index rose quarter-over-quarter in Q3 2025, driven by escalating production costs.
• O-Cresol production costs accelerated in Q3 2025, influenced by a 3.0% CPI increase in September 2025.
• Phenol and methanol feedstock costs strengthened in Q3 2025 due to refinery turnarounds and tight supply conditions.
• Industrial production showed near-stagnant 0.1% year-over-year growth in September 2025, limiting O-Cresol industrial demand.
• Retail sales increased 5.42% year-over-year in September 2025, indirectly supporting O-Cresol demand in consumer goods.
• Automotive demand strengthened in Q3 2025, with light vehicle sales rebounding, supporting O-Cresol applications.
• Consumer confidence declined to 94.2 in September 2025, suggesting weakening consumer optimism and potential O-Cresol demand slowdown.
• Industry inventories shrank in Q3 2025 as companies accelerated destocking, indicating potential future demand for O-Cresol.
Why did the price of O-Cresol change in September 2025 in North America?
• Producer Price Index rose 2.6% in August 2025, increasing O-Cresol raw material and energy costs.
• Regional phenol supply was constrained in Q3 2025 by plant turnarounds, tightening O-Cresol availability.
• Henry Hub natural gas spot prices trended upward in late Q3 2025, raising O-Cresol energy expenses.
APAC
• In China, the O-Cresol Price Index fell in Q3 2025, driven by weak industrial demand and a 0.3% CPI decline.
• The O-Cresol Price Forecast indicates continued downward pressure due to persistent overcapacity and subdued downstream demand.
• O-Cresol Production Cost Trend declined in Q3 2025, primarily due to falling toluene feedstock costs in Northeast Asia.
• O-Cresol Demand Outlook remained subdued as China's manufacturing activity contracted in September 2025.
• A 2.3% year-on-year decline in producer prices in September 2025 pressured the O-Cresol Price Index.
• Consumer confidence at 89.6 in September 2025, indicating pessimism, weakened O-Cresol demand in consumer applications.
• Despite a 6.5% year-on-year industrial production expansion in September 2025, overall chemical overcapacity persisted.
• Toluene inventories accumulated in China during Q3 2025, increasing supply pressure and impacting O-Cresol production costs.
Why did the price of O-Cresol change in September 2025 in APAC?
• Weak industrial demand, with a 2.3% PPI decline year-on-year in September 2025, pressured O-Cresol prices.
• Declining toluene feedstock costs in Northeast Asia during Q3 2025 directly reduced O-Cresol production expenses.
• Contracting manufacturing activity in China during Q3 2025 led to subdued new orders and lower O-Cresol demand.
Europe
• In Germany, the O-Cresol Price Index fell quarter-over-quarter in Q3 2025, influenced by declining producer prices and weak industrial demand.
• O-Cresol production costs decreased in Q3 2025, supported by a 1.7% YoY fall in producer prices in September 2025.
• Phenol feedstock (benzene) costs declined sharply in August 2025, significantly lowering O-Cresol manufacturing expenses.
• European chemical demand remained subdued in Q3 2025, with Germany's industrial production down 1.0% YoY in September 2025.
• The Manufacturing Index for Q3 2025 was contracting, indicating reduced demand for O-Cresol in industrial applications.
• European phenol inventories swelled in Q3 2025, suggesting ample supply and exerting downward pressure on O-Cresol prices.
• Elevated energy costs for chemical manufacturing in Europe during Q3 2025 partially offset feedstock cost reductions.
• German automotive output rebounded sharply in September 2025, providing some indirect support for O-Cresol demand.
Why did the price of O-Cresol change in September 2025 in Europe?
• Producer prices fell 1.7% YoY in September 2025, reducing O-Cresol manufacturing costs.
• Germany's industrial production declined 1.0% YoY in September 2025, weakening O-Cresol demand.
• European phenol inventories swelled in Q3 2025, contributing to increased supply availability.