For the Quarter Ending September 2025
North America
• In the United States, the Ricinoleic Acid Price Index fell in Q3 2025, influenced by weak demand and rising production costs.
• Production costs for Ricinoleic Acid accelerated in Q3 2025, driven by anticipated higher input expenses for manufacturers.
• Industrial electricity costs increased in August 2025, directly contributing to elevated Ricinoleic Acid production expenses.
• Demand for Ricinoleic Acid weakened in Q3 2025, as new orders for chemical manufacturers declined.
• The 0.1% year-over-year industrial production growth in September 2025 indicated near stagnation in manufacturing.
• Consumer confidence declined to 94.2 in September 2025, impacting discretionary spending and consumer-facing applications.
• Chemical manufacturers experienced accelerated inventory destocking in Q3 2025, reflecting cautious market sentiment.
• Persistent inflation, with CPI at 3.0% (September 2025) and PPI at 2.6% (August 2025), pressured costs.
Why did the price of Ricinoleic Acid change in September 2025 in North America?
• Weak demand in major customer markets led to a fall in new chemical orders during Q3 2025.
• Accelerating production costs, including increased industrial electricity in August 2025, pressured prices.
• Elevated year-over-year CPI (3.0% in September 2025) and PPI (2.6% in August 2025) raised input costs.
APAC
• In China, the Ricinoleic Acid Price Index fell in Q3 2025, influenced by declining producer prices and contracting manufacturing.
• Production costs for Ricinoleic Acid increased in July 2025 due to rising input prices for manufacturing.
• Overall manufacturing market demand contracted in Q3 2025, despite September's 6.5% industrial production growth.
• Ricinoleic Acid prices are forecast to remain pressured by September 2025's negative CPI (-0.3%) and PPI (-2.3%).
• Raw material inventories for manufacturing contracted in July 2025, indicating cautious procurement strategies.
• China's goods exports showed slowing growth in Q3 2025, though export demand decline narrowed in September.
• High-tech and Equipment Manufacturing sectors maintained strong growth momentum in Q3 2025, supporting specific applications.
• Retail sales increased 3.0% and unemployment was 5.2% in September 2025, offering some support for consumer demand.
Why did the price of Ricinoleic Acid change in September 2025 in APAC?
• Declining producer prices, with PPI falling 2.3% in September 2025, pressured Ricinoleic Acid pricing.
• The Manufacturing Index contracted in September 2025, reducing industrial demand for Ricinoleic Acid inputs.
• Consumer confidence remained pessimistic at 89.6 in September 2025, impacting demand for consumer-facing products.
Europe
• In Germany, Ricinoleic Acid Price Index remained stable in Q3 2025, due to contracting industrial demand.
• Ricinoleic Acid production costs faced upward pressure from castor seed and processing expenses in Q3 2025.
• Producer prices of industrial products were lower by 1.7% in September 2025, mainly due to reduced energy costs.
• Industrial production declined 1.0% in September 2025, leading to bearish demand for Ricinoleic Acid.
• Germany's Manufacturing Index was contracting in Q3 2025, indicating a slowdown in industrial activity.
• Consumer-facing demand for Ricinoleic Acid was slightly bullish, with retail sales up 0.2% in September 2025.
• Global castor oil supply remained stable in Q3 2025, but good castor seed stocks in India were low.
• European natural gas prices showed diverging performance in Q3 2025, impacting energy-intensive chemical production.
• Demand for sustainable and bio-based products in personal care and pharmaceuticals strengthened in Q3 2025.
Why did the price of Ricinoleic Acid change in September 2025 in Europe?
• Lower producer prices by 1.7% in September 2025 reduced Ricinoleic Acid production input costs.
• Industrial production declined 1.0% in September 2025, weakening Ricinoleic Acid demand in Germany.
• Upward pressure on castor seed and processing costs impacted Ricinoleic Acid production expenses.
