For the Quarter Ending June 2025
North America
• North American Propionic Acid Price declined during the Q2 2025 especially in US market where it fell by 4.6%, settling at USD 782/MT FOB Houston in June.
• The bearish trend was largely driven by persistently weak feedstock ethylene costs, influenced by declining upstream crude oil benchmarks due to rising OPEC+ output and elevated U.S. inventories.
• Supply remained ample across the quarter, supported by steady domestic production and lack of major logistical constraints. Inventory buildup during April and May led to oversupply, especially amid tepid export activity.
• Demand from key end-use segments like food preservation and agrochemicals was seasonally stable but insufficient to offset the broader supply overhang. Buyers adopted short-term procurement strategies amid market uncertainty.
• Prices fell sharply in May due to excess stock and slow overseas inquiries, reaching a low of USD 727/MT DEL Louisiana. June saw a rebound as high summer temperatures boosted preservative demand and restocking activity resumed.
• Despite stronger late-quarter consumption and improved spot transactions, price gains were capped by balanced availability and cautious market sentiment, keeping overall quarterly performance in negative territory.
Why did the price of Propionic Acid change in July 2025 in the North American region?
• In July 2025, the Propionic Acid Price Index showed mild upward movement as herbicide producers initiated pre-season raw material stocking ahead of Q3 agricultural activity.
• The Propionic Acid Demand Trend remained supported by steady offtake in food preservation applications, maintaining a consistent baseline for market consumption.
• The Propionic Acid Inventory Outlook indicated slight drawdowns, as buyers addressed peak summer operational needs, contributing to a modest shift in supply-demand balance.
APAC
• Propionic Acid Spot Price in the Asian market declined during the Q2 2025 especially in the Chinese market where it fell by 5.9%, settling at USD 871/MT FOB Shanghai in June.
• The bearish trend was driven by weak feedstock ethylene costs, stemming from sustained crude oil softness, including OPEC+ supply expansions and high U.S. inventories, which kept production economics under pressure.
• Supply remained ample throughout the quarter as domestic plants maintained steady operations and built-up inventories ahead of holidays, leading to oversupply and limited incentive for price hikes.
• Demand from food preservation and agrochemical sectors remained seasonally active but failed to offset the supply overhang. Buyers prioritized short-term procurement amid muted export inquiries and cautious sentiment.
• Price fluctuations through April and May reflected shifts in logistical conditions and procurement cycles—dipping as low as USD 871/MT in late May amid oversupply, despite temporary rebounds from spring agricultural demand.
• Logistics disruptions, including dense fog and port congestion at Shanghai and Ningbo, strained exports in June, but failed to materially support prices due to subdued downstream activity and sufficient buyer inventories.
Why did the price of Propionic Acid change in July 2025 in the APAC region?
• In July 2025, the Propionic Acid Price Index edged higher as herbicide producers began pre-season raw material stocking ahead of Q3 agricultural demand.
• The Propionic Acid Production Cost Trend was supported by elevated feedstock ethylene prices and selective production run-rate adjustments.
• The Propionic Acid Price Forecast suggests potential firmness in offers, underpinned by tightening inventories and upstream cost pressure.
Europe:
• European Propionic Acid prices exhibited a softening trend throughout Q2 2025, reflecting broader bearish market fundamentals across the region.
• The downtrend was primarily influenced by sustained weakness in upstream feedstock values, with soft crude oil benchmarks continuing to suppress production cost support across the European supply chain.
• Domestic production remained steady, and supply conditions were largely uninterrupted. Adequate inventory accumulation during the early part of the quarter, combined with limited export activity, created a well-supplied market environment.
• Demand from downstream sectors such as food preservation and herbicides remained seasonally stable; however, overall consumption lacked the strength to counterbalance the persistent oversupply.
• Mid-quarter, sellers faced mounting stock levels and reduced international inquiries, pressuring prices downward. A moderate improvement in offtake was observed toward the quarter’s end, supported by seasonal restocking and increased temperature-driven preservative use.
• Despite late-quarter demand recovery, price stabilization remained constrained by cautious buying behavior and balanced supply-demand fundamentals, resulting in an overall weak market trajectory for the quarter.
Why did the price of Propionic Acid change in July 2025 in the European region?
• In July 2025, the Propionic Acid Price Index registered a moderate increase, supported by early stocking activity from agricultural chemical manufacturers preparing for Q3 production cycles.
• The Propionic Acid Demand Trend remained stable, driven by consistent consumption in food preservation and feed additive sectors across key European markets.
For the Quarter Ending March 2025
North America
Throughout Q1 2025, the propionic acid market in North America experienced a gradual price recovery, reversing early-quarter weakness amid supply disruptions and seasonal demand growth. In January, prices softened slightly as post-holiday supply improvements and subdued downstream demand led to cautious procurement. Feedstock ethylene supply was robust, supported by surging ethane production, while market activity remained muted due to inventory sufficiency.
February marked a notable turnaround, with prices rising amid severe Gulf Coast winter storms that disrupted logistics and tightened availability. DOW announced a price increase, citing higher transportation and input costs. Meanwhile, steady demand from food preservatives and animal feed sectors, along with early-season herbicide activity, lent further support.
March sustained the upward trajectory, driven by tightening domestic stock levels, improved U.S. manufacturing activity, and stronger demand from agricultural applications ahead of the planting season. While ethylene prices softened slightly, they remained elevated enough to support margins. With inventory drawdowns and robust end-use demand, North American propionic acid prices maintained firm upward pressure through the quarter.
Asia-Pacific
Throughout Q1 2025, the propionic acid market in the Asia-Pacific (APAC) region saw consistent price increases, driven by seasonal agricultural activity, fluctuating feedstock dynamics, and firm export demand. In January, prices in China rose slightly as enhanced production rates and easing ethylene costs helped balance earlier tightness. Downstream sectors like food preservation and animal feed maintained moderate demand, while winter procurement and pre-Lunar New Year restocking offered limited momentum.
February opened with a brief decline due to oversupply and weak demand during the Lunar New Year lull. However, by late February, prices surged again as ethylene costs spiked and regional supply tightened due to plant turnarounds, prompting stronger export interest.
March marked a continued upward trend, supported by improving herbicide demand amid North China’s wheat season and steady preservative usage. Although feedstock costs eased slightly, firm overseas demand and low inventory replenishment sustained bullish sentiment. Overall, strong seasonal demand and tight regional supply kept upward pressure on prices across Q1.
Europe
Throughout Q1 2025, the propionic acid market in Europe witnessed a firm upward trend, largely influenced by tight supply conditions, energy cost pressures, and seasonal demand recovery. In January, prices softened slightly as post-holiday supply improvements and subdued downstream demand led to cautious procurement. Manufacturers adopted cautious operating strategies amid slow activity in food preservation and feed sectors, while herbicide applications were limited due to winter conditions. February saw prices increase modestly, supported by strong feedstock ethylene costs and constrained regional availability. DOW, among other major producers, implemented price hikes citing higher input and logistics costs across Europe. Although demand remained moderate, steady offtake in food preservation and early herbicide preparation sustained buying interest. By March, the European market saw continued upward pressure on prices amid low inventory levels and improving downstream consumption. With the onset of the spring season, demand for herbicides picked up, particularly in Southern and Eastern Europe, supporting stronger procurement. Despite modest feedstock cost relief, supply tightness and robust seasonal demand upheld bullish sentiment in the European propionic acid market.
For the Quarter Ending December 2024
North America
The propionic acid market in North America exhibited varied trends in Q4 2024. Prices increased steadily in October and November, supported by robust demand from the food preservative sector and heightened seasonal procurement. Seasonal activities, such as grain preservation and holiday-driven food production, bolstered procurement, particularly in high-yield farming regions. Manufacturing remained steady, with producers maintaining adequate operating rates to meet domestic and export demand. Despite logistical disruptions caused by earlier port strikes, improved freight handling helped stabilize supply chains.
In December, propionic acid prices decreased slightly due to elevated inventory levels and moderated downstream demand. Seasonal consumption ahead of Christmas kept food preservative demand steady, but cautious procurement strategies and improved shipping availability balanced supply dynamics. Moderated production rates aligned with lower year-end demand, while feedstock ethylene prices remained moderately high but stable. The easing of logistical constraints and sufficient ethylene availability supported stable manufacturing costs. The market reflected balanced conditions as participants focused on aligning output with year-end inventory adjustments, leading to a slight decline in prices amid steady supply and moderate demand.
APAC
The propionic acid market in APAC experienced varied trends in Q4 2024. Prices increased steadily in October and November, supported by strong seasonal demand from the food preservative sector and industrial applications ahead of festive celebrations like Christmas and Lunar New Year. Elevated production rates ensured sufficient supply to meet rising procurement needs, while stable feedstock ethylene costs provided consistent cost support. Export activity surged in November due to high seasonal shipping demand and logistical constraints, adding momentum to the market. However, in December, prices declined as inventories improved and downstream activity moderated. Cautious year-end procurement strategies, coupled with reduced overseas inquiries, softened market sentiment. Improved supply conditions, including higher operating rates and better inventory management, further contributed to the price correction in December. While the food preservative sector drove demand during the quarter, industrial applications also supported market activity. As the quarter ended, the market reflected a balance between earlier demand surges and subsequent moderation due to year-end adjustments and logistical improvements.
Europe
The propionic acid market in Europe, particularly in Germany, displayed mixed trends in Q4 2024. Prices increased steadily in October and November, driven by strong seasonal demand from the food preservation sector and agrochemical applications. Holiday-driven food production and increased grain storage requirements boosted procurement levels, while steady production rates maintained sufficient supply. Export activity from Germany to neighboring countries also contributed to the upward momentum. Despite high energy costs affecting production economics, producers managed to meet demand without significant disruptions.
In December, propionic acid prices experienced a slight decline due to moderated demand and improved inventory levels. Seasonal slowdowns in food preservation and industrial applications, coupled with cautious year-end procurement strategies, contributed to the downward trend. Manufacturers adjusted production rates to align with reduced demand, while improved supply chain conditions helped stabilize market dynamics. Feedstock costs, including ethylene and acetic acid, remained stable, providing consistent production cost support. Overall, the market reflected balanced conditions, with sufficient availability and moderated demand preventing significant price fluctuations as the year drew to a close.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American region witnessed a significant upsurge in Propionic Acid prices, driven by a confluence of factors impacting the market dynamics. Various elements contributed to the price escalation, including tight supply conditions, heightened demand from downstream industries, and cost pressures from increased feedstock and energy prices. These factors collectively exerted upward pressure on prices, creating a bullish market sentiment.
The USA, experiencing the most substantial price changes, saw Propionic Acid prices rise steadily throughout the quarter. Market stability was influenced by robust demand from sectors like food preservation and packaging, coupled with supply constraints and rising production costs. The quarter recorded a notable 2.4% increase in prices compared to the same period last year, indicating a sustained upward trend. Despite a relatively stable performance in the previous quarter, a 7% price difference between the first and second half of Q3 highlighted a notable price shift.
The latest quarter-ending price of USD 789/MT of Propionic Acid DEL Louisiana in the USA signifies the culmination of a quarter characterized by consistent price increments, reflecting a positive pricing environment driven by market forces and industry dynamics.
APAC
In Q3 2024, the APAC region witnessed a mixed trends in propionic acid prices, driven by a confluence of factors that propelled market dynamics towards an upward trajectory. The significant tightening of supply chains, coupled with robust demand across various sectors, played a pivotal role in shaping the pricing landscape. This quarter saw an unprecedented 7.4% increase from the same period last year, reflecting the growing market pressures and evolving industry trends. Moreover, the quarter-on-quarter surge of 9% underscored the rapid escalation in pricing dynamics, indicating a rapid shift in market sentiment. China experienced the most substantial price fluctuations, with price changes reaching their peak levels. The overall trend in propionic acid prices in China showcased a consistent upward movement, influenced by seasonal demand patterns and supply constraints. The correlation between price changes and seasonal factors highlighted the impact of external market forces on pricing strategies. A notable 3% price difference between the first and second half of the quarter emphasized the dynamic nature of market conditions and the evolving pricing environment. In conclusion, the latest quarter-ending price of USD 856/MT of Propionic Acid 99.5% FOB Shanghai in China reflects a prevailing positive sentiment in the pricing environment, characterized by a significant uptrend in market prices.
Europe
In Q3 2024, Europe experienced a marked uptrend in Propionic Acid demand, driven by both limited supply and increasing demand across several industries. Furthermore, the prices of imports from the Asian market were on the higher side leading to higher inventories cost. The upward market sentiment stemmed from various factors: tight supply conditions due to production cuts and logistical bottlenecks, elevated feedstock costs, and higher energy prices. These elements collectively contributed to increased production expenses and a tightening market. Market stability was influenced by robust demand from sectors like food preservation and packaging, coupled with supply constraints and rising production costs. Key demand drivers included the food preservation and animal feed industries, as well as the expanding use of Propionic Acid in pharmaceutical and packaging applications. Despite stable pricing earlier in the year, Q3 saw a significant market shift, with industry sources indicating a notable rise in demand. The quarter’s dynamics underscored the impact of Europe’s high energy costs on chemical production, combined with sustained demand from essential sectors.
FAQs
1. Why did Propionic Acid prices decline across major regions in Q2 2025?
Prices dropped due to persistent oversupply, weak upstream ethylene costs, and tepid export activity, with most producers maintaining high run rates while demand lagged behind.
2. What role did upstream crude oil and ethylene trends play in Q2 pricing?
Ongoing softness in crude oil and downstream ethylene prices eroded production margins and reduced cost-push support, contributing significantly to downward pricing pressure.
3. How did agricultural trends affect Q2 Propionic Acid procurement strategies?
Buyers in all regions showed short-term purchasing behavior, delaying bulk procurement despite spring herbicide demand, awaiting clearer Q3 cues amid market uncertainty.
4. Why did the European Propionic Acid market experience limited recovery late in Q2?
Despite seasonal restocking, oversupply, stable production, and soft feedstock costs capped any major price gains, keeping the market well-balanced but weak.
