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.
For the Quarter Ending June 2024
North America
In Q2 2024, Propionic Acid pricing in North America has been characterized by a persistent decline, influenced by numerous pivotal factors. The quarter witnessed subdued demand from downstream sectors, including food preservatives and agrochemicals, exacerbated by severe weather conditions that hampered agricultural activities. Additionally, an abundant supply of feedstock ethylene and ample inventory levels further pressured manufacturers to lower production costs, resulting in bearish market sentiments. The global trade environment also played a crucial role, with tariffs and regulatory challenges causing disruptions in supply chains, thereby impacting market stability.
In the USA, the maximum price changes were observed, reflecting a significant downward trend. Generally, the prices of Propionic Acid in the USA marked a substantial -16% decrease compared to the same quarter last year, underscoring the ongoing weakness in demand and oversupply issues. From the previous quarter in 2024, the pricing change remained flat at 0%, indicating a stagnant market environment.
By the end of the quarter, the price settled at USD 695/MT DEL Louisiana, reinforcing the negative pricing sentiment. This consistent decline throughout the quarter reflects an unfavorable pricing environment, driven predominantly by weak demand, oversupply, and economic uncertainties, with no significant recovery signals observed.
APAC
Propionic Acid pricing in the APAC region for Q2 2024 experienced significant upward momentum, driven by a confluence of market dynamics and external factors. Key drivers included heightened global temperatures, which amplified the demand for food preservatives, a primary application of propionic acid. Additionally, the surge in upstream crude oil prices, fueled by reduced US commercial crude inventories and OPEC+ production cuts, elevated production costs. Sustained high coal prices, driven by extreme weather conditions, further compounded these costs. Global port congestion, peaking at an 18-month high, exacerbated logistical challenges, escalating freight and container costs, and contributing to overall price increments for petrochemicals in the region.
Focusing on China, the country witnessed pronounced price volatility, with significant increases due to robust domestic and international demand, spurred by the summer season's heightened need for food preservatives. Seasonal spikes in cargo volumes and geopolitical disruptions further strained supply chains, contributing to price hikes. The overall trend was predominantly bullish, reflecting positive market sentiments and increased industrial activity. Compared to the same quarter last year, prices decreased by 13%, indicating a recovery phase from previous lows. However, compared to the previous quarter in 2024, prices surged by 11%, reflecting strong market recovery and demand growth.
Within the quarter, prices rose by 4% from the first to the second half, underscoring consistent incremental demand. The quarter concluded with propionic acid prices at USD 785/MT FOB Shanghai for 99.5% purity, reflecting a positive and upward pricing environment despite previous declines. This consistent increasing sentiment highlights a robust market scenario, driven by supply chain challenges and heightened seasonal demand.
Europe
The European region experienced a mixed pricing environment for Propionic Acid in Q2 2024 due to fluctuations influenced by several factors, such as plant closures, escalating feedstock costs, and rising crude oil prices.
In the Netherlands, Propionic Acid prices displayed a bullish trajectory throughout April and May, primarily driven by robust demand from the food industry downstream and heightened feedstock ethylene costs due to widespread plant shutdowns. Additionally, adverse supply chain compounded market tightness by disrupting power supplies and causing facility closures, thereby affecting propionic acid logistics and availability. However, in June, prices experienced a downturn due to oversupply and the reduced cost of feedstock ethylene, leading to a bearish sentiment in the market.
Overall, the pricing landscape for Propionic Acid in Europe during Q2 2024 remained relatively stable, albeit with some upward pressure due to moderate demand from the food industry and plant closures in other exporting nations.
