For the Quarter Ending March 2025
North America
In Q1 2025, the oxalic acid market in the U.S. experienced a mixed price trend, with notable fluctuations driven by changing demand and supply dynamics.
Early in the quarter, prices saw an increase due to strong demand from key sectors such as leather tanning, textiles, and metal cleaning, supported by favorable supply conditions. However, as the quarter progressed, prices softened, with a 1.6% decline in March, attributed to weakening demand, particularly in the textile and leather industries, amid rising operational costs. The metal sector showed stable but slowing demand, while the aluminum processing industry saw reduced oxalic acid consumption due to tariff impacts.
Despite these challenges, oxalic acid prices were bolstered by stable raw material costs and controlled production levels. The supply side was impacted by logistical challenges and import constraints from China, but improved freight conditions and easing production costs in March provided some relief. Overall, the market outlook remains cautious, with demand uncertainties and trade policy shifts influencing price movements throughout the quarter.
APAC
In Q1 2025, the oxalic acid market in the APAC region, experienced fluctuating price trends, with notable price increases in January followed by a decline in March. Early in the quarter, strong demand across key sectors like leather tanning, textiles, and metal cleaning, coupled with stable production dynamics, supported a positive market outlook. However, by March, prices dropped by 7.1%, driven by weakening demand and an unfavorable supply-demand balance. The textile and leather industries faced reduced demand due to a decline in exports, while the metal cleaning sector remained stable despite external trade pressures, including rising U.S. tariffs. Supply disruptions, including environmental regulations and logistical challenges, further compounded market instability. Despite these challenges, alternative suppliers, such as India and Germany, capitalized on shifts in trade flows, benefiting from growing export opportunities as buyers sought alternatives to domestic supply. Overall, the market outlook for oxalic acid in the APAC region was mixed, with a strong start to the quarter followed by a slowdown in demand and reduced market stability by March.
Europe
In Q1 2025, the European oxalic acid market experienced a mixed price trend driven by diverse supply and demand dynamics. Early in the quarter, prices rose due to robust demand, particularly in the leather tanning, textile, and specialty chemical sectors, with Europe continuing to play a significant role in the global market. However, prices surged in Germany by 2.1% in February, despite logistical disruptions and rising production costs. In contrast, by March 2025, prices saw a significant decline of 6.8%, primarily due to weakening demand in key industries such as metal cleaning, textiles, and leather processing. The slowdown in European industrial activity, compounded by stricter sustainability regulations and reduced export activity, exerted downward pressure on oxalic acid prices. Despite some resilience in production, the market outlook became more cautious as economic headwinds, including tightening energy regulations and fluctuating raw material costs, overshadowed short-term growth prospects. Overall, while stable raw material costs helped sustain some demand, the regional market faced challenges that tempered its optimistic start to the year.
For the Quarter Ending December 2024
North America
In Q4 2024, Oxalic Acid prices in the U.S. market continued to decline, primarily due to weak demand from sectors like construction, metals, and leather tanning. The U.S. heavily relied on imports from Asian and European markets, including China, Taiwan, and India, which influenced overall price dynamics. Despite the decline, signs of market stabilization emerged by the end of the quarter, with producers and end-users cautiously optimistic about the outlook.
Manufacturing activity in the U.S. contracted in December, though at a slower pace compared to November. Despite some recovery signs, production levels remained stable, and raw material costs were lower due to falling crude oil prices. These factors contributed to lower production costs for Oxalic Acid.
Demand from industries such as textiles and refrigerants continued to soften, which further impacted the pricing trend. Analysts predicted that Oxalic Acid prices would remain stable, supported by steady raw material costs and controlled production levels. However, the market remained cautious, with a "wait and watch" approach prevailing among manufacturers and traders as the year ended.
APAC
In Q4 2024, Oxalic Acid prices in the APAC region, particularly in China, saw a decline due to a balance between supply and demand. The need for large-scale developments decreased, driven by stabilizing or declining populations in developed regions, which contributed to weaker demand. As one of the major exporters, the Asian market continued to play a key role in shaping Oxalic Acid market dynamics. The demand from industries such as aluminum production, refrigerants, and specialty chemicals remained low, further impacting the market.
Manufacturing activity faced challenges due to a subdued demand outlook both domestically and internationally. Despite efforts to integrate automation and digital technologies, the mainland’s leading port operator struggled with rising operational costs. Additionally, the rebound in crude oil prices put upward pressure on Oxalic Acid prices, although feedstock markets, particularly for Formic Acid, showed signs of recovery, fostering a more optimistic sentiment.
Demand from sectors like construction remained weak, and although business activity in construction showed slight improvement, the overall market outlook remained cautious. Analysts predicted that Oxalic Acid prices would remain stable, supported by steady raw material costs and controlled production levels.
Europe
In Q4 2024, the Oxalic Acid market in Europe, particularly in Germany, experienced a downward trend, with prices showing modest declines in October. This shift was attributed to a cautious sentiment among both producers and end-users, reflecting a subdued outlook for the commodity. As a key consumer and exporter, Germany continued to influence the market, but demand from industries such as aluminum production, refrigerants, and specialty chemicals remained moderate. Sufficient inventory levels and weaker demand contributed to market stabilization under softer conditions.
Manufacturing activity in the region faced challenges, particularly with slowed production due to reduced consumption and a weak demand outlook. Port operations had mostly returned to normal after congestion issues, although minor delays occurred during the holiday period. The drop in crude oil prices further pressured Oxalic Acid prices, making it a more competitive option in the market.
Despite these challenges, analysts predicted that Oxalic Acid prices would remain stable, supported by consistent raw material costs and controlled production levels. However, demand from industries like leather and textiles continued to decline, contributing to the overall downward pricing trend.
South America
In Q4 2024, Oxalic Acid prices in the South American market experienced a continued decline, largely due to sluggish demand from key sectors like construction, metals, and leather tanning. The region remained reliant on imports from major suppliers in Asia and Europe, such as China, Taiwan, and India, which impacted the overall price trend. However, toward the end of the quarter, signs of market stabilization began to appear, with producers and end-users expressing cautious optimism for the future.
Manufacturing activity in South America showed a slowdown in December, although at a more moderate rate compared to November. Despite some positive indications, production levels remained steady, and lower crude oil prices helped reduce raw material costs. This contributed to a decrease in production expenses for Oxalic Acid.
Demand from industries like textiles and refrigerants continued to weaken, further affecting price dynamics. Analysts anticipated that Oxalic Acid prices would stabilize, supported by steady raw material costs and consistent production levels. However, the market remained hesitant, with manufacturers and traders adopting a "wait and see" approach as the year drew to a close.
For the Quarter Ending September 2024
North America
In Q3 2024, the Oxalic Acid market in North America witnessed a notable downturn in prices, driven by a confluence of factors impacting supply and demand dynamics. The market grappled with disruptions in the global supply chain, exacerbated by container crises and logistical challenges, leading to a moderation in prices.
Heightened uncertainties, including potential disruptions by the International Longshoremen’s Association and supply chain constraints, added pressure on prices. Additionally, reduced demand from the construction and metals sectors further contributed to the downward trend. Specifically in the USA, the market experienced the most significant price changes, reflecting the broader regional trend. The decline in construction input prices observed in September had been primarily driven by a significant drop in oil prices. Although domestic freight rates remained low compared to historical standards, rising global container-shipping rates and emerging supply chain issues were expected to push materials prices higher in the coming months.
This had caused concern among contractors, many of whom anticipated a reduction in their profit margins over the next six months. While imports from Asia could have been rerouted through West Coast ports, doing so would have placed substantial strain on both port and landside infrastructure. Imports from Europe and Latin America, however, would have encountered challenges, as alternative routes were limited. Additionally, the potential for a strike at US ports had posed a serious risk of triggering a new supply chain crisis.
APAC
In Q3 2024, the APAC region saw a significant uptrend in Oxalic Acid prices, driven by multiple market dynamics. China experienced the most pronounced fluctuations, with constrained supply chains, weak downstream demand, and external factors like fluctuating crude oil prices playing key roles in shaping the pricing landscape. Despite disruptions and plant shutdowns, the market in China followed the overall regional trend, maintaining an upward trajectory. Seasonality and correlations in price changes further reinforced this positive momentum. The golden week festive break and market participants should carefully track any developments or news that might spark renewed trading activity or boost demand. Oxalic acid demand remained steady from sectors such as iron cleaning agents and leather tanning. Meanwhile, stainless steel prices experienced volatility due to disruptions in the macroeconomic environment and the supply chain. Despite these fluctuations, raw material prices for stainless steel remained strong, with inventory levels stable at moderate levels. Although short-term contradictions were not yet significant, potential fluctuations could arise from shifts in macroeconomic sentiment. Monitoring raw material prices and social inventory levels had been crucial for assessing future trends.
Europe
In Q3 2024, the Europe region witnessed a notable increase in Oxalic Acid prices, driven by a combination of factors. Supply constraints, stemming from global freight industry challenges and port congestion, exerted upward pressure on prices. Strong demand, coupled with tight capacity, further escalated the pricing environment. Additionally, the eurozone manufacturing sector displayed signs of weakness, prompting manufacturers to limit discounts and adjust output charges. This, in turn, contributed to the overall bullish market sentiment. Germany, in particular, experienced significant price changes, with a 27% increase from the previous quarter. Seasonal trends and market dynamics played a crucial role in shaping the price trajectory, with a 2% price variation between the first and second half of the quarter. Seasonal factors led to reduced consumption, while an oversupply—driven by enhanced production efficiency and capacity expansions—further pushed prices downward. Additionally, high inventory levels and increased exports from the region amplified the price decline. Despite the EU's efforts toward achieving climate neutrality, progress in reducing greenhouse gas emissions from the transport sector has remained slow. A report released by the European Environment Agency (EEA) highlights that the sector's shift toward sustainability is being hindered by rising transport demand and the slow advancement of sustainable transportation alternatives.
South America
In Q3 2024, the South America region experienced a downturn in Oxalic Acid pricing, with Brazil notably witnessing significant price fluctuations. The market was influenced by a combination of factors that contributed to the decreasing prices. Supply chain disruptions, including challenges in container shipping and scarcity of capacity, led to a tight supply, impacting prices. Additionally, increased freight costs from China and disruptions at major Asian ports added pressure on pricing dynamics. Demand from the downstream construction sector showed signs of weakening, further exacerbating the price decline. Brazil, in particular, saw the maximum price changes, with a noticeable correlation between overall trends, seasonality, and price fluctuations. The quarter recorded a 17% decrease from the previous quarter, with a notable -5% difference between the first and second half of the quarter. Although domestic freight rates remained low compared to historical levels, rising global container-shipping rates and emerging supply chain challenges could push material prices higher in the coming months. This raised concerns among contractors, many of whom expected a decline in their profit margins over the next six months.
For the Quarter Ending June 2024
North America
The Oxalic Acid market in North America surged in Q2 2024, driven by a confluence of market dynamics and external factors. A tight supply from Asian markets, exacerbated by elevated freight charges and disruptions in major shipping routes, notably contributed to this price surge. The demand from the construction and cleaning sectors remained robust, further pressuring the supply chain. Additionally, the rising prices of feedstock, particularly ethylene glycol, escalated operational costs, intensifying the upward pricing momentum.
In the USA, where price changes were most pronounced, the market showcased a clear bullish trend. The overall trends reflected strong seasonality effects, with construction activity peaking and contributing to the heightened demand for oxalic acid. The first half of the quarter saw a significant price hike, outpacing the latter half by 31%, indicating a rapid initial surge followed by a period of stabilization. The continuous demand from downstream industries, including solvents, cleaning, and leather tanning, provided a steady pull on the market, while the operational rates in manufacturing units showed signs of deceleration due to constrained supply and logistical challenges.
The quarter-over-quarter price escalation was marked at 18%, underscoring a notable increase in market rates compared to Q1 2024. The quarter concluded with oxalic acid priced at USD 739/MT CFR Los Angeles, highlighting a positive pricing environment. Despite the lack of reported plant shutdowns, the persistent issues such as the collapse of the Francis Scott Key Bridge disrupting logistics and the strategic rerouting by shipping lines like COSCO underscored the market's vulnerability to external disruptions. Overall, Q2 2024 reflected a robust and bullish pricing environment for oxalic acid in North America, particularly within the USA.
APAC
In Q2 2024, the Oxalic Acid market in the APAC region experienced significant pricing declines, driven primarily by a confluence of factors that exerted downward pressure. The quarter saw a substantial contraction in demand from various sectors, including construction and cleaning, due to economic slowdowns and market uncertainties. Rising production costs and higher feedstock prices, coupled with decreased purchasing power, further exacerbated the situation. Additionally, logistical challenges, particularly in shipping and port congestions, compounded supply chain disruptions, leading to stockpile accumulation and ultimately catalyzing price reductions.
China, being a pivotal market in the APAC region, exhibited the most pronounced price changes. The Chinese market's decline was characterized by a substantial decrease in demand from construction and real estate sectors, exacerbated by seasonal factors such as prolonged rainfall and corresponding lower activity in the infrastructure domain. This seasonality, combined with high inventory levels and sluggish sales, strained market dynamics. The correlation between these factors led to a consistent downward trend in prices, reflecting a negative pricing environment.
The price of Oxalic Acid in China fell significantly throughout the quarter, marking a -2% change from the previous quarter and a notable -9% drop between the first and second half of the quarter. The latest quarter-ending price stood at USD 416/MT FOB Qingdao. This persistent decrease underscores a bearish sentiment, shaped by weak demand, higher operational costs, and logistical bottlenecks. The quarter's overall negative pricing trend, without any reported plant shutdowns or disruptions, highlights a challenging market landscape for Oxalic Acid in the APAC region.
Europe
The second quarter of 2024 has proven to be a chaotic period for the Oxalic Acid market in Europe, characterized by pronounced price increases. This upward trend has been driven by a confluence of factors including labor shortages in the construction industry, resumed operations of clinker production lines, fluctuating yet stabilizing coal prices, and the impact of long-term cooperative shipping agreements. These elements collectively have led to greater inventory pressures and a fragile stabilization of the cement market, further complicating the pricing dynamics of Oxalic Acid.
Focusing on Germany, the country has experienced the most significant price movements within the region. The manufacturing sector's contraction, alongside a cautious purchasing approach from power plants amidst fluctuating thermal coal prices, has exacerbated supply constraints. German stakeholders have noted a consistent demand from the pharmaceutical sector, despite inflationary pressures and a less competitive cost environment compared to the Middle East and Asia. Seasonal factors such as rising temperatures have also played a role, maintaining a moderate yet sustained demand for Oxalic Acid, particularly for its application in cleaning and leather tanning.
The overall trend in Germany has shown a steep 25% increase from the previous quarter, with a notable price escalation of 33% between the first and second halves of Q2. The latest quarter-ending price for Oxalic Acid in Germany has reached USD 720/MT FOB Hamburg, signifying a robust upward trajectory. This consistent increase in pricing reflects a predominantly positive sentiment, driven by limited inventories, increased production costs, and sustained demand across various end-use sectors. The market context suggests that the pricing environment for Oxalic Acid in Germany has been decisively bullish, with no major disruptions or plant shutdowns reported during this quarter.
