For the Quarter Ending September 2025
North America
• In United States, the Perchloroethylene Price Index rose quarter-over-quarter, driven by increased production costs and demand.
• Perchloroethylene production costs increased due to rising ethylene feedstock costs and an overall upward trend in natural gas prices in Q3 2025.
• Rising CPI (3.0% YoY in September 2025) and PPI (2.6% YoY in August 2025) contributed to higher manufacturing expenses.
• Demand for dry cleaning services strengthened in Q3 2025, supported by robust retail sales, up 5.42% year-over-year in September 2025.
• Industrial cleaning and metal degreasing demand increased, aligning with strengthening manufacturing output in Q3 2025.
• Chemical industry inventories tightened in Q3 2025 as destocking accelerated, indicating reduced supply.
• Weak industrial production growth (0.1% YoY in September 2025) tempered overall industrial chemical demand.
• The Perchloroethylene Price Index is forecast to remain firm due to sustained cost pressures and consistent demand outlook.
Why did the price of Perchloroethylene change in September 2025 in North America?
• Rising CPI (3.0% YoY in September 2025) and PPI (2.6% YoY in August 2025) increased overall production costs.
• Ethylene feedstock costs rose in Q3 2025; natural gas prices trended upward year-over-year, impacting energy.
• Strengthening demand for dry cleaning and industrial cleaning services supported price increases in Q3 2025.
APAC
• In China, the Perchloroethylene Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting manufacturing activity.
• Perchloroethylene production costs were reduced by significant drops in naphtha feedstock prices in late August 2025.
• Demand faced headwinds from -0.3% CPI YoY and a 5.2% unemployment rate in September 2025, indicating weak consumer spending.
• The Manufacturing Index contracted in September 2025, signaling reduced industrial activity and lower solvent demand.
• Despite industrial production growing 6.5% YoY in September 2025, overall domestic demand remained soft in Q3 2025.
• A -2.3% PPI YoY in September 2025 suggested weak industrial pricing power, pressuring Perchloroethylene prices.
• Retail sales grew 3.0% YoY in September 2025, but low consumer confidence (89.6 index) still dampened discretionary spending.
• Ethylene overcapacity in Northeast Asia and increased China's reliance on naphtha feedstock influenced market dynamics.
Why did the price of Perchloroethylene change in September 2025 in APAC?
• Weak consumer demand, with -0.3% CPI YoY in September 2025, reduced dry cleaning service spending.
• Contracting Manufacturing Index in September 2025 led to lower industrial activity, decreasing Perchloroethylene demand.
• Significant drops in naphtha feedstock costs in late August 2025 reduced production expenses, influencing Perchloroethylene pricing.
Europe
• In Germany, the Perchloroethylene Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting industrial activity.
• Perchloroethylene production costs faced pressure from elevated natural gas prices and rising EDC feedstock costs in Q3 2025.
• Demand for Perchloroethylene was dampened by a 1.0% year-over-year decline in industrial production in September 2025.
• The Manufacturing Index contracted in Q3 2025, signaling reduced demand for industrial solvents.
• Consumer spending, impacted by a 2.4% CPI increase in September 2025, negatively affected dry cleaning demand.
• European chemical industry capacity utilization remained low in Q3 2025, impacting Perchloroethylene supply.
• German chemical exports weakened in July and August 2025, while imports increased, affecting trade flows.
• The Perchloroethylene price forecast suggests continued pressure from subdued industrial activity and mixed cost inputs.
• Retail sales increased by 0.2% year-over-year in September 2025, offering slight support to dry cleaning demand.
Why did the price of Perchloroethylene change in September 2025 in Europe?
• Contracting Manufacturing Index in Q3 2025 reduced industrial solvent demand for Perchloroethylene.
• Producer prices decreased by 1.7% year-over-year in September 2025, due to lower energy costs.
• Elevated natural gas prices and rising EDC feedstock costs in Q3 2025 pressured production.
