For the Quarter Ending June 2025
Asia-Pacific (APAC)
• The Propylene Carbonate Price Index in China declined by 4.3% quarter-on-quarter, settling at approximately USD 935/tonne FOB Qingdao by the end of June.
• Why did the price of Propylene Carbonate change in July 2025 in China? In early July, prices remained stable as balanced fundamentals prevailed, domestic EV production offered baseline demand, but buyers stayed cautious amid falling lithium salt prices and muted overseas interest.
• The Propylene Carbonate Price Forecast for Q3 suggests rangebound movement, with mild upward potential if NEV and ESS demand accelerates, though cautious procurement and potential trade barriers may limit the upside.
• The Propylene Carbonate Production Cost Trend remained soft in Q2. Feedstock propylene oxide prices declined in May and stabilized in June, allowing manufacturers to reduce PC offers slightly without margin erosion.
• The Propylene Carbonate Demand Outlook was mixed during the quarter. While domestic NEV production reached a record 1.31 million units in May, downstream cathode and electrolyte producers largely avoided bulk procurement, citing expectations of softer battery material pricing.
• Chinese exporters faced weaker spot inquiries from South Korea, India, and the U.S. as buyers held off amid shipping cost volatility and tariff concerns.
• Logistics were largely smooth aside from minor port delays at Qingdao. Inventory levels at coastal terminals rose modestly, as production slightly outpaced offtake.
North America
• The Propylene Carbonate Price Index in North America showed subdued movement in Q2 2025, tracking steady resin input costs and cautious downstream activity.
• Why did the price of Propylene Carbonate change in July 2025 in North America? In early July, prices held flat due to steady supply availability and conservative electrolyte production linked to modest battery-cell manufacturing rates.
• The Propylene Carbonate Price Forecast for Q3 indicates stable-to-soft conditions, barring a significant uptick in demand from energy storage systems or a lithium price rebound.
• The Propylene Carbonate Production Cost Trend remained manageable, with sufficient access to propylene oxide and solvents. Domestic PC production was limited, so pricing reflected landed import values from Asia.
• The Propylene Carbonate Demand Outlook remained tepid.
• Slower growth in EV battery deployment and limited ESS project execution capped near-term volume gains.
• Importers avoided forward booking, citing volatile freight rates and unclear trade policy signals.
• Buyers operated hand-to-mouth, prioritizing operational continuity over speculative inventory building.
Europe
• The Propylene Carbonate Price Index in Europe remained relatively stable through Q2, with modest variation reflecting freight rates, feedstock fluctuations, and regional demand divergence.
• Why did the price of Propylene Carbonate change in July 2025 in Europe? Prices stayed rangebound, as buyers limited purchasing to core operational needs and managed inventories tightly amid weak macroeconomic signals.
• The Propylene Carbonate Price Forecast for Q3 leans neutral to slightly firm, depending on downstream demand for electrolytes and industrial solvents, and the impact of shipping constraints.
• The Propylene Carbonate Production Cost Trend was shaped by energy cost variations and import-dependence.
• Most European buyers sourced material from Asia, taking advantage of soft Chinese offers when freight allowed.
• The Propylene Carbonate Demand Outlook remained cautious.
• Battery material demand was limited by uneven EV production and regulatory headwinds, while industrial and coating applications showed seasonal moderation.
• Overall, PC consumption stayed moderate, with stable imports balancing lean forward bookings.
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.
Frequently Asked Questions (FAQs):
1. What is the current price of Propylene Carbonate in APAC?
As of end-June 2025, propylene carbonate prices in China were stable at around USD 935/tonne FOB Qingdao.
2. What is the current price of Propylene Carbonate in North America?
PC prices showed limited movement in Q2 2025, tracking Asian import values and subdued demand from electrolyte and solvent applications.
3. What is the current price of Propylene Carbonate in Europe?
Prices remained largely stable in Q2 2025, with minor fluctuations driven by freight and input cost changes.
4. Why did Propylene Carbonate prices change in July 2025?
o APAC: Prices held steady amid cautious restocking and modest EV-linked demand.
o North America: Prices remained flat due to slow ESS and battery adoption and steady landed imports.
o Europe: Prices stayed stable as buyers deferred forward bookings and relied on lean inventories.
