For the Quarter Ending March 2025
North America
During the first quarter of 2025, the U.S. Propylene Carbonate (PC) market, which heavily depends on Chinese imports, saw a gradual decline in pricing, largely influenced by ongoing global oversupply and hesitant downstream demand. The softening in January and February was mainly driven by limited restocking efforts from battery and electrolyte manufacturers, alongside widespread material availability in the global market. Although there was a slight recovery in March, overall market sentiment remained weak due to conservative purchasing behavior and persistent logistical challenges.
On the supply front, Chinese PC producers maintained consistent production levels, while falling upstream raw material costs exerted downward pressure on manufacturing expenses, subsequently impacting export pricing. In the U.S., imports were shaped by just-in-time procurement and variable buyer confidence. Disruptions caused by weather events in key lithium-producing regions and delays in international project timelines helped marginally reduce supply pressure, but did not significantly affect PC accessibility.
From a demand perspective, the U.S. battery industry offered a mixed picture. February saw a 20% year-over-year increase in electric vehicle sales, fueled by federal incentives and a broader range of available models. Nevertheless, policy uncertainties under the Trump administration, particularly regarding potential changes to EV tax credits and emissions regulations, contributed to a cautious market environment.
APAC
In the first quarter of 2025, the Propylene Carbonate (PC) market in China exhibited a mixed performance shaped by upstream volatility, logistical pressures, and cautious downstream activity. Entering January, prices moved upward due to cost pressures from propylene oxide, which experienced restricted supply following planned maintenance at major facilities, notably in Lianyungang. Inventory control strategies among downstream players and sluggish electrolyte demand capped any aggressive restocking behavior.
February brought additional challenges, including continued upstream disruptions, international port congestion, and the strengthening U.S. dollar. With Chinese New Year festivities reducing operational capacity, electrolyte production slowed further. Despite upstream cost pressures, weak post-holiday demand and limited procurement from battery manufacturers maintained a subdued tone in the market. The production of electrolytes was largely order-based, with operating rates declining as cell manufacturers exercised price discipline and avoided speculative purchasing.
March saw a gradual improvement in supply coordination and a slow recovery in end-use demand. Electrolyte and battery cell producers remained conservative, sticking to just-in-time procurement practices. While the upstream propylene oxide segment faced persistent maintenance-related fluctuations, manufacturers adjusted output closely in line with incoming orders, helping to stabilize the supply chain. Final consumption in the battery sector showed moderate signs of stabilization, with consistent sourcing patterns returning toward the end of the quarter.
Europe
In the first quarter of 2025, the Propylene Carbonate (PC) market in the Netherlands experienced a period of low activity, driven by weak demand fundamentals, cautious buying behavior, and evolving trends in battery technology across Europe. The market remained largely stable as it entered January, with no major changes in supply or cost pressures. Although the outlook for downstream sectors was somewhat positive, procurement activity was constrained due to year-end inventory management and broader economic uncertainties.
Throughout the quarter, imports into the Netherlands remained at moderate levels, with major exporters operating at reduced rates, reflecting lower global consumption. Battery manufacturers faced ongoing challenges from an oversupply of lithium compounds and slowing electric vehicle (EV) growth in key regions, especially following the Chinese New Year and amidst high inventory levels. Additionally, a shift towards cost-effective lithium-iron-phosphate (LFP) batteries, replacing more expensive nickel-manganese-cobalt (NMC) batteries, added complexity to material sourcing strategies.
On the manufacturing side, the operating rates of electrolyte producers declined due to reduced demand and conservative strategies from downstream sectors. Geopolitical uncertainties, changes in trade policies, and concerns over potential new tariffs further clouded business sentiment. While infrastructure development and regulatory support in some European countries offered potential for recovery, the quarter ended with limited demand growth and no significant rebound in the PC market.
For the Quarter Ending December 2024
North America
The North American Propylene Carbonate market in Q4 2024 exhibited a mixed price trajectory, largely influenced by the dynamics of the global electrolyte market. Initially, the quarter witnessed relative price stability amidst an oversupplied electrolyte market and reduced consumer inquiries.
This oversupply, driven by factors such as increased production from major players, exerted significant downward pressure on Propylene Carbonate prices. While demand from the EV sector, particularly in the US, showed promising growth, it was insufficient to offset the impact of oversupply. Towards the end of the quarter, prices began to decline further, primarily due to cautious purchasing behavior from battery manufacturers and EV makers.
This cautious approach was influenced by factors such as tightening regulations in key markets and concerns about the overall economic outlook. Despite these challenges, the North American Propylene Carbonate market demonstrated some resilience. The growing demand for EVs in the region, albeit at a slower pace compared to other markets, continued to support the market. However, the overall market sentiment remained subdued, with concerns about oversupply and potential price volatility persisting.
APAC
The APAC Propylene Carbonate market in Q4 2024 exhibited a mixed price trajectory. The quarter commenced with stable prices, followed by a period of price increases driven by robust demand from downstream material plants for pre-holiday inventory buildup and cost support from the upstream market. However, prices began to stabilize as the quarter progressed, influenced by factors such as increased inventory levels and subdued consumer demand towards the end of the year. Year-end destocking activities further contributed to price stability. Despite these moderating factors, the market demonstrated resilience, supported by strong demand from the burgeoning electric vehicle (EV) sector. The robust growth of the EV market in China, with record-breaking sales throughout the quarter, provided significant support to the Propylene Carbonate market. While challenges such as fluctuations in upstream Propylene Oxide prices were observed. Maintenance focused on the East China region from November to December at the year’s end. The 400,000 tons/year HPPO facility in the Lianyungang area was taken offline for maintenance on November 11th, expected to last around 45 days. The supply in the market was limited, and the price of propylene oxide was increasing. the overall market remained optimistic, reflecting the strong long-term growth prospects of the EV industry in the region.
Europe
The European Propylene Carbonate market in Q4 2024 exhibited a mixed price trajectory. The quarter commenced with a bearish trend, primarily driven by a significant influx of cheaper imports from Asia. Declining freight charges and increased container availability further exacerbated the downward pressure on prices. While Chinese producers-initiated efforts to curb output, these measures were proven insufficient to stabilize the market. A notable shift occurred mid-quarter, with prices experiencing a gradual increase. This upward trend was primarily attributed to rising production costs in major exporting nations, particularly driven by increased Propylene Oxide prices and higher demand from the domestic market. However, European demand remained relatively subdued, with limited impact on the overall market dynamics. Towards the end of the quarter, prices experienced further appreciation due to the arrival of higher-priced imports from China. Rising demand for electrolytes from Chinese battery cell manufacturers, coupled with increased production costs, significantly impacted export prices. Despite this upward pressure, European demand remained weak, with no significant supply shortages observed in the region.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American market for propylene carbonate faced a significant downturn, marked by a sharp decline in prices compared to the same period the previous year. Several factors fueled this price drop, including weak demand, elevated inventory levels, and slow procurement activity. Additionally, increased imports and minimal cost support from upstream sectors further exacerbated the downward pressure, reinforcing the overall bearish market sentiment.
In the U.S., where the most significant price fluctuations were observed, the trend aligned with the broader North American market. Prices began to drop early in the quarter, driven by persistent challenges, and this decline continued into the second half of the quarter, reflecting sustained downward momentum.
By the close of Q3 2024, propylene carbonate prices had settled at lower levels, underscoring the challenging market conditions, which were shaped by oversupply and weak demand. The overall pricing trend for propylene carbonate across North America during this period remained negative, impacted by an excess of supply, sluggish demand, and challenging conditions in both upstream and downstream sectors.
APAC
In Q3 2024, the market for Propylene Carbonate in the APAC region experienced a downward trend in prices. This decrease can be attributed to several key factors influencing market dynamics. Firstly, the oversupply of Propylene Carbonate in the region led to reduced demand and subsequently lower prices. Additionally, weakened demand from downstream industries, particularly the battery manufacturing sector, contributed to the downward pressure on prices. The impact of falling crude oil prices on the upstream propylene oxide market also played a role in driving prices down. China, being a significant player in the Propylene Carbonate market, witnessed the most significant price changes during the quarter. Compared to the same quarter last year, prices in Q3 2024 saw a decrease of 4%, indicating a notable shift in market conditions. Furthermore, the percentage change from the previous quarter in 2024 was recorded at -1%, highlighting the continued decline in prices. The comparison between the first and second half of the quarter revealed a 3% decrease in prices, emphasizing the sustained downward trend. Ultimately, the quarter-ending price of Propylene Carbonate FOB Qingdao in China settled at USD 880/MT, underscoring the prevailing negative pricing environment characterized by decreasing prices and challenging market conditions.
Europe
In Q3 2024, the European market for propylene carbonate faced a persistent decline in prices, driven by multiple adverse factors. Oversupply concerns, alongside weak demand from both Asian and North American markets, were central to the downward pressure on pricing. The lack of significant cost support from upstream industries further intensified the price drop throughout the quarter. However, the market remained uncertain at times due mounting tensions in the Middle East. The market remained challenging, with high inventory levels and sluggish demand amplifying the downward trend in prices. European manufacturers also contended with rising production costs, subdued demand from downstream sectors, and worsening economic conditions, all of which contributed to the difficulties faced by the propylene carbonate market. Belgium and Germany saw the most noticeable fluctuations in prices during the quarter. The substantial year-on-year decrease underscores the challenging market landscape, while quarter-on-quarter price variations and differences between the first and second halves of the quarter reflect the ongoing decline in propylene carbonate prices.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Propylene Carbonate market showed mixed trends. Early in the quarter, prices fell due to oversupply and weak consumer procurement, leading to price declines. Demand for Propylene Carbonate remained steady at moderate levels, with ample product availability in the local market. Industry experts note that many consumers are reluctant to purchase large quantities of Propylene Carbonate at higher prices from downstream and terminal markets. Despite strong sales in March, many automakers faced subdued performance in April, with only electric vehicle sales showing notable growth.
U.S. consumer interest in electric vehicles has declined, with surveys indicating that only a small segment of the population is interested in EVs. However, hybrid vehicles continue to garner strong interest due to their electrification benefits without significant lifestyle changes. Additionally, Tesla is nearing the loss of its position as the top EV seller in the U.S., as other manufacturers sold approximately 597,000 fully electric vehicles over the past year compared to Tesla's 618,000. This highlights increasing competition and potential market saturation concerns for EVs.
On the supply side of Propylene Carbonate, freight charges along major sea trade routes have risen, making shipments to the U.S. more costly. Unexpected increases in ocean freight demand from Asia, driven by restocking cycles in Europe and North American importers advancing peak season demand, have put additional strain on the already stretched container market. However, reduced conflict risk premiums, especially in the Middle East, have eased concerns about supply disruptions, leading to further reductions in international freight charges.
APAC
In Q2 2024, the Propylene Carbonate market in the APAC region experienced a period of price stability, largely attributable to balanced supply and demand fundamentals. The stable pricing environment was sustained by consistent demand from the downstream chemical and pharmaceutical industries, coupled with moderate procurement activities from the lithium-ion battery manufacturing sector. Additionally, steady international crude oil prices have provided a predictable cost baseline for the production of Propylene Carbonate, ensuring minimal fluctuations. Focusing on China, the country has experienced the most significant price movements within the APAC region. Overall trends in China's market have displayed a stable sentiment, characterized by consistent supply and moderate demand. Despite seasonal variations typically impacting market dynamics, such as increased activity during peak manufacturing seasons, the second quarter has seen a notable equilibrium. The correlation in price changes has been steady, with a slight 2% increase from the previous quarter in 2024, indicating a positive yet stable market environment. A comparative analysis of the first and second half of Q2 2024 shows no significant price difference. This stability underscores a well-balanced market with efficient supply chain management and predictable demand cycles. Conclusively, the pricing environment has remained stable overall, with the latest quarter-ending price affirming this sentiment. The market’s resilience and balanced dynamics suggest a continued stable outlook for Propylene Carbonate pricing in the region.
Europe
During the second quarter of 2024, the Propylene Carbonate market in Europe faced several constraints that significantly impacted prices. Despite experiencing instability due to weak consumer demand, prices remained relatively stable. Demand from the downstream lithium-ion battery sector was moderate. In major exporting nations, sellers consistently reduced prices in response to an oversupply situation, as producers increased production levels in anticipation of higher import volumes in April compared to March. This indicated a trend of supply recovery for the Propylene Carbonate market. In Europe, Propylene Carbonate prices dropped in mid-Q2 due to weak demand fundamentals, despite support from steady upstream raw material prices. Finished product inventory levels helped maintain market balance, although spot transactions remained stable. Data showed a decline in domestic sales, even though consumption in downstream markets stayed consistent. The slowdown in electric two-wheeler growth was linked to reduced subsidies and challenges faced by some OEMs, along with delays in subsidy disbursements impacting affordability and market expansion. Additionally, increased freight charges across major sea trade routes have made shipments more expensive, adding strain to the container market due to unseasonal demand and potential restocking cycles. Overall, the Propylene Carbonate market remains calm, with limited activity observed in the region.
