For the Quarter Ending September 2025
North America
• In United States, Phenyl Isocyanate Price Index rose in Q3 2025, driven by increased feedstock costs and tight supply.
• Production costs increased from 2.6% PPI rise (August 2025) and 3.0% CPI (September 2025), impacting manufacturing expenses.
• Overall chemical demand remained weak in Q3 2025; industrial production grew only 0.1% with 4.3% unemployment.
• Benzene feedstock costs rose in Q3 2025, influenced by firm naphtha and energy margins in the United States.
• Tight domestic benzene supply in Q3 2025 limited Phenyl Isocyanate precursor inventory buildup as export volumes increased.
• US natural gas prices rose in Q3 2025, contributing to higher energy feedstock costs for Phenyl Isocyanate manufacturing.
• Automotive light vehicle sales strengthened in Q3 2025, indirectly supporting Phenyl Isocyanate derivatives demand in the sector.
• Consumer confidence declined to 94.2 in September 2025, dampening demand for consumer-facing products using Phenyl Isocyanate.
Why did the price of Phenyl Isocyanate change in September 2025 in North America?
• Rising benzene feedstock costs and a 2.6% PPI increase in August 2025 elevated Phenyl Isocyanate production expenses.
• Tight domestic benzene supply in Q3 2025, coupled with increased exports, contributed to upward Phenyl Isocyanate price pressure.
• Weak overall chemical demand in Q3 2025, despite strong 5.42% retail sales growth, countered Phenyl Isocyanate price increases.
APAC
• In China, Phenyl Isocyanate prices fell quarter-over-quarter, due to structural oversupply and declining producer prices in September 2025.
• Phenyl Isocyanate production costs rose in Q3 2025, driven by accelerating input cost inflation and higher crude oil prices.
• Phenyl Isocyanate demand outlook was mixed; industrial production rose 6.5% in September 2025, but manufacturing contracted.
• Consumer confidence at 89.6 in September 2025 remained pessimistic, impacting Phenyl Isocyanate demand, though retail sales rose 3.0%.
• Automotive sector production and sales strengthened from July to September 2025, boosting Phenyl Isocyanate demand.
• China's Manufacturing Index was contracting in September 2025, indicating reduced industrial activity.
• New export orders for manufacturing rose in September 2025, partially offsetting domestic demand pressures.
• The Phenyl Isocyanate Price Forecast suggests continued downward pressure due to persistent chemical industry oversupply.
• Benzene feedstock prices stabilized in early Q3 2025, though crude oil inventories surged through September 2025.
Why did the price of Phenyl Isocyanate change in September 2025 in APAC?
• Producer prices declined 2.3% year-on-year in September 2025, indicating weak industrial demand.
• The Manufacturing Index was contracting in September 2025, signaling reduced industrial activity.
• Persistent structural oversupply in China's chemical industry exerted downward pressure.
Europe
• In Germany, Phenyl Isocyanate Price Index fell in Q3 2025, driven by weakening industrial demand.
• Phenyl Isocyanate production costs decreased in Q3 2025 due to softened benzene and sharply dropped aniline feedstock prices.
• The Manufacturing Index contracted in Q3 2025, and industrial production declined 1.0% in September 2025.
• Ample aniline and benzene supply in Europe contributed to downward price pressure during Q3 2025.
• Producer prices of industrial products were lower by 1.7% in September 2025, reducing Phenyl Isocyanate manufacturing costs.
• The European chemical market experienced an influx of cheaper imports in Q3 2025, intensifying pricing pressure.
• Consumer Price Index increased 2.4% year-over-year in September 2025, raising overall production costs.
• A stable 6.3% unemployment rate in September 2025 suggested cautious consumer spending, indirectly affecting demand.
Why did the price of Phenyl Isocyanate change in September 2025 in Europe?
• Lower producer prices by 1.7% in September 2025 reduced Phenyl Isocyanate manufacturing costs.
• Contracting Manufacturing Index and 1.0% industrial production decline dampened Phenyl Isocyanate demand.
• Ample feedstock supply and cheaper imports exerted significant downward pressure on Phenyl Isocyanate prices.
