For the Quarter Ending September 2025
North America
• In the United States, the Propionaldehyde Price Index rose quarter-over-quarter in Q3 2025, driven by strengthening ethylene prices and rising production costs.
• Propionaldehyde production costs increased in Q3 2025, influenced by a 2.6% year-over-year PPI rise in August 2025.
• General inflationary pressure, with Consumer Price Index at 3% year-over-year in September 2025, also contributed to rising production expenses.
• Demand outlook mixed; global chemical demand softened, yet US retail sales rose 5.42% year-over-year in September 2025.
• Industrial production showed near stagnation with a 0.1% year-over-year increase in September 2025, impacting industrial applications.
• Strong US light-vehicle sales in September 2025 provided a bullish signal for Propionaldehyde demand in the automotive sector.
• Consumer confidence declined to 94.2 in September 2025, suggesting headwinds for Propionaldehyde in consumer-driven end-markets.
• Ethylene supply in North America remained oversupplied in Q3 2025, while export demand weakened in August 2025.
Why did the price of Propionaldehyde change in September 2025 in North America?
• Ethylene production costs rose in Q3 2025 due to increasing naphtha and natural gas expenses.
• Overall demand in the global chemicals industry experienced softening during Q3 2025.
• Industrial production increased modestly by 0.1% year-over-year in September 2025.
APAC
• In China, the Propionaldehyde Price Index fell quarter-over-quarter in Q3 2025, influenced by contracting manufacturing activity.
• Propionaldehyde production costs remained stable in Q3 2025, supported by steady ethylene and natural gas feedstock prices.
• Overall chemical demand in China remained subdued during Q3 2025, despite a 6.5% rise in industrial production.
• Consumer confidence at 89.6 in September 2025 indicated pessimism, dampening Propionaldehyde demand in consumer applications.
• Deflationary pressures, with the Consumer Price Index at -0.3% and the Producer Price Index at -2.3% in September 2025, exerted downward pressure on Propionaldehyde prices.
• Elevated industry-wide chemical inventories in Q3 2025, coupled with overcapacity, contributed to a bearish Propionaldehyde market.
• Automotive sector demand strengthened in Q3 2025, offering some support for Propionaldehyde derivatives.
• Propionaldehyde price forecast suggests continued stability to slight declines, given persistent oversupply and subdued demand.
• Manufacturing Index contracting in September 2025 signaled reduced industrial output, impacting Propionaldehyde demand.
Why did the price of Propionaldehyde change in September 2025 in APAC?
• Contracting Manufacturing Index in September 2025 reduced industrial demand for Propionaldehyde.
• Deflationary pressures from a -0.3% Consumer Price Index and a -2.3% Producer Price Index in September 2025 impacted Propionaldehyde pricing.
• Elevated chemical inventories and overcapacity in Q3 2025 contributed to downward Propionaldehyde price pressure.
Europe
• In Germany, the Propionaldehyde Price Index fell quarter-over-quarter in Q3 2025, driven by contracting industrial activity.
• Propionaldehyde production costs declined in Q3 2025, influenced by the Producer Price Index at -1.7% in September 2025 and easing naphtha feedstock costs.
• Demand for Propionaldehyde weakened in Q3 2025, as the Manufacturing Index contracted and industrial production declined by 1%.
• European ethylene inventories rose in Q3 2025 due to delayed downstream purchases, impacting Propionaldehyde supply.
• Automotive production surged in September 2025 after an August decline, offering mixed signals for Propionaldehyde demand.
• Consumer Price Index increased by 2.4% in September 2025, indicating inflation and potential erosion of purchasing power.
• Retail sales saw a slight 0.2% year-on-year increase in September 2025, cautiously supporting consumer-driven derivatives.
• The unemployment rate remained stable at 6.3% in September 2025, suggesting subdued overall economic activity.
Why did the price of Propionaldehyde change in September 2025 in Europe?
• Weakened industrial demand in Q3 2025, with the Manufacturing Index contracting and industrial production declining -1%.
• Reduced production costs resulted from a -1.7% Producer Price Index in September 2025 and easing naphtha feedstock in Q3 2025.
• Elevated European ethylene inventories in Q3 2025, coupled with steady imports, contributed to ample supply.
