For the Quarter Ending March 2024
North America
In the first quarter of 2024, the pricing dynamics of Salicylic Acid in the North America region, particularly in the USA, were influenced by a diverse set of factors beyond the typical market drivers. The overall trend for Salicylic Acid prices in the USA during this period was marked by volatility and fluctuations, showcasing a mix of upward and downward movements. The market situation in the USA played a pivotal role in shaping these dynamics, with factors like consumer sentiment and economic indicators impacting both demand and prices.
The quarter began with a decline in prices, primarily attributed to cautious consumer sentiment amid sluggish retail sales and rising inflation. This caution translated into reduced consumer spending and a subsequent decrease in demand for Salicylic Acid. Additionally, uncertainties stemming from inflationary pressures prompted consumers to adopt a more conservative approach to their finances, further dampening demand. Another contributing factor to the price decline was the oversupply of Salicylic Acid in the market. Market participants accumulated ample inventories ahead of the spring festival in China, leading to an excess supply situation. This surplus, coupled with reduced demand, exerted downward pressure on prices. However, prices experienced a slight increase in March, driven by an improvement in business sentiments fueled by a steady rise in new orders from end-users, surpassing the available supply in the domestic market and consequently driving Salicylic Acid prices upwards.
Overall, the pricing environment for Salicylic Acid in Q1 2024 was characterized as unstable. The final price for Salicylic Acid USP CFR Houston in the USA for the first quarter of 2024 stood at USD 2965 per metric ton, reflecting the complex dynamics at play during this period.
Asia Pacific
In the first quarter of 2024, the pricing dynamics of Salicylic Acid in the APAC region have displayed a mixed pattern. Several factors have influenced prices, including demand from key sectors such as cosmetics, healthcare, and pharmaceuticals, alongside considerations of raw material availability and disruptions in the supply chain. China, in particular, witnessed significant fluctuations in Salicylic Acid prices. The initial decline in prices at the quarter's outset was closely tied to challenges within China's manufacturing sector, directly impacted the supply and demand dynamics of Salicylic Acid. Furthermore, the Lunar New Year period, which typically entails reduced manufacturing activity and diminished demand, further influenced price trends in China. However, prices rebounded slightly towards the end of the quarter as the manufacturing sector showed signs of steady improvement, indicating a notable recovery in industrial activities post the Lunar New Year holiday. This resurgence in manufacturing was characterized by a substantial expansion in both supply and demand metrics, supported by a resurgence in international demand, thus strengthening the positive momentum in Salicylic Acid prices. In conclusion, the quarter-ending price for Salicylic Acid in China stood at USD 2750 per metric ton FOB Shanghai. The pricing landscape for Salicylic Acid in the APAC region has been shaped by a variety of factors, resulting in a blend of positive and negative price shifts throughout the quarter.
Europe
In the first quarter of 2024, the pricing landscape for Salicylic Acid in Europe experienced a blend of factors influencing market prices, resulting in a mixed trend with both positive and negative price fluctuations. Notably, fluctuating demand from various industries played a significant role in shaping market prices. At the quarter's onset, prices declined in response to subdued consumer sentiments and economic concerns, particularly impacting demand from the pharmaceutical and healthcare sectors. This decline in demand, coupled with the central bank's decision to maintain existing interest rates, added complexity to the market environment by further straining consumers' purchasing power. In response to these challenges, market suppliers and traders worked to address excess inventories amidst sluggish domestic demand. However, prices rebounded towards the quarter's end due to improved business sentiments, particularly in the German market. Additionally, declining inflation rates in Germany bolstered consumer confidence by alleviating financial burdens, enhancing purchasing power, and contributing to the upward trajectory of Salicylic Acid prices. Overall, the pricing environment for Salicylic Acid in Q1 2024 was characterized by instability, influenced by fluctuating demand, supply chain disruptions, and inflationary pressures. The quarter concluded with the price for Salicylic Acid USP CFR Hamburg in Germany recorded at USD 2940 per metric ton, reflecting the complex dynamics of the period.
For the Quarter Ending December 2023
North America
In the fourth quarter, the pricing trend of Salicylic acid in the United States underwent significant changes. October witnessed a notable decrease in prices, attributed to subdued domestic demand and ample inventories held by market merchants. This decline was further exacerbated by the strength of the dollar against foreign currencies, facilitating more affordable imports and contributing to the overall price drop. Additionally, declining prices in major exporting countries like China reinforced this downward trend, shaping the market dynamics for Salicylic acid.
However, November marked a distinct shift as prices experienced a significant increase. This uptick was fueled by heightened consumer spending during major shopping events and increased demand from sectors utilizing Salicylic acid in personal care products. The weakening of the US dollar against foreign currencies also contributed to higher prices by limiting imports. December continued the upward trajectory with a surge in inquiries from cosmetic and pharmaceutical industries, driven by heightened demand during the holiday season. Additionally, disruptions in global supply chains and rising inflation further contributed to price increases. Market participants responded by offering higher quotations to maximize profits, maintaining an elevated sentiment in the market.
Overall, the quarter showcased dynamic shifts in demand and supply dynamics, influenced by consumer behavior, currency fluctuations, and global market conditions. The latest price for Salicylic acid in the USA at the end of the quarter was USD 3255/MT CFR Houston.
APAC
In the fourth quarter, the pricing trend of Salicylic acid in the APAC underwent notable changes. China's manufacturing sector faced an unforeseen contraction in October, signaling broader economic challenges despite earlier positive indicators. Weak market demand and a reduction in manufacturing output, partly due to seasonal factors, underscored ongoing struggles, with both manufacturing and non-manufacturing PMIs indicating a drop in demand. However, Salicylic acid prices surged in November, driven by increased domestic market orders and improved market sentiments, buoyed by enhancements in logistics and manufacturing optimism. The upward trajectory in phenol prices, a crucial raw material, further contributed to the price hike, fueled by heightened inquiries from downstream industries. Winter-related demand for Salicylic acid in skincare products also played a significant role in sustaining this trend. In December, prices continued to rise despite minimal fluctuations in phenol costs, driven by steady demand from cosmetics, pharmaceutical, and healthcare sectors. The colder weather prompted increased demand for Salicylic acid-based products, while disruptions in the supply chain between Asian and European countries led to slower shipments and heightened operational costs. Market suppliers adjusted by quoting higher prices to maintain profit margins, reflecting sustained challenges and adaptations within the industry.
Europe
In the fourth quarter in Europe, the trend for Salicylic acid prices exhibited fluctuations driven by various factors. In October, prices sharply declined due to subdued consumer sentiments, elevated interest rates, and ample market supply. Declining inflation and indications of a possible recession in Germany further contributed to this downward trend. However, November saw a reversal with prices rising, fueled by heightened demand from pharmaceutical and healthcare sectors, increased consumer spending, and reduced market inventories. Improving business sentiments in Germany and reduced exports from China also played a role in this uptick. December witnessed another uptick in prices, driven by enhanced consumer sentiments during the holiday season and heightened demand for Salicylic acid in skincare products and medications. Disruptions in shipping routes due to attacks on cargo ships in the Red Sea increased shipping costs, further pushing prices upward. Additionally, a resurgence in inflation in Germany, driven by energy prices, added to operational expenses, contributing to the price surge. Overall, amidst global uncertainties and concerns about antibiotic shortages, market players accumulated stockpiles, intensifying supply constraints and influencing price increases.
For the Quarter Ending September 2023
North America
Salicylic Acid prices showcased an inclining trend throughout the third quarter in the USA. Prices grew by 2.22 percent in September compared to the previous month. In July, consumer confidence in the United States hit a two-year high despite a persistently tight job market and falling inflation. The Consumer Price Index increased by 3.2% year on year in July, up from 3% in June. Prices continued to grow in August, with gasoline and fuel oil prices rising by 9.1% and 10.6%, respectively, increasing company expenses and transportation costs. Furthermore, factors such as rising warehousing charges, a lack of storage space, and inventory replenishment all contributed to this upward trend. Prices rose significantly in September as a result of rising inflation, slow trading activity, and continued demand from end-user industries. In the year ending September, the Consumer Price Index increased 3.7%, slightly higher than the 3.6% projected. Energy costs rose 1.5%, gasoline prices climbed 2.1%, and fuel oil prices rose 8.5%. Furthermore, imports from China were slow, keeping Salicylic Acid costs high.
Asia Pacific
Salicylic Acid prices showed a mixed pattern in the Chinese market throughout the third quarter. Prices increased 7.59 percent in July due to increased demand from local and foreign markets and a scarcity of supply in the market. The manufacturing sector remained in recession but improved in July compared to the previous scenario, indicating that industrial production efficiency increased marginally due to increased market demand. Increased demand from local and international markets prompted businesses to boost their selling prices, contributing to the rising trend. Prices declined by 4.17 percent in August due to lower end-user demand and ample market supply. According to the National Bureau of Statistics (NBS), manufacturing activity fell for the fifth consecutive month in August, while service sector growth slowed as consumers continued to limit their spending. Furthermore, increasing interest rates in important export countries contributed to a decrease in worldwide Salicylic Acid demand, compounding the negative trend. However, prices grew by 1.67 percent in September due to a steady spike in new orders, signaling increased demand for the manufacturing industry.
Europe
Salicylic Acid prices in Germany had a varied trend throughout the third quarter. Prices increased by 4.50 percent in July due to increased demand from end users and decreased inventories among merchants and suppliers. Furthermore, strong heat waves and heavy rain in Germany hampered transportation networks, resulting in delayed supply times to meet market demand, causing Salicylic Acid prices to rise. However, Salicylic acid prices fell by 2.39 percent in August due to ample supply among market providers and a drop in customer demand. Market retailers and service providers reported a decrease in new orders and consumption activity. Furthermore, rising interest rates and inflation undermined consumer confidence, decreasing demand for Salicylic Acid in the domestic market. Nonetheless, prices jumped 1.96 percent in September, suggesting a rebound in consumer confidence in the German market. This current trend might be linked to a number of crucial variables, including a shortage of accessible stock, high energy prices, and increased end-user demand.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the U.S. market for Salicylic acid witnessed oscillation. In the first two months of Q2, the prices were recorded to be increasing stably in the wake of enhanced dynamics of supply and demand. Asia-US trade has grown since the zero-covid tolerance policy was abolished. Given the rising demand from end-user suppliers, there was a moderate lack of Salicylic acid on the shelves of domestic warehouses, which led to price inflation in the market. Eventually, at the commencement of June, prices started to fall, and the market witnessed a considerable plunge in the trajectory of salicylic acid in the US. The price ended Q2 2023 at USD 3065/ CFR Houston, with an average quarterly declination of 5.11%. Due to unusually low purchases by the end-user industry, domestic suppliers have large inventories of salicylic acid, leading to continued cost reductions in the domestic market. The euro strengthened against the US dollar in the second quarter of 2023. This made it more expensive for US buyers to source salicylic acid from Europe, which also contributed to the price drop. U.S. imports fall as companies struggle to sell excess inventories. Import cargo volumes at major US container ports also fell.
Asia
The Salicylic acid market in the second quarter of 2023 in the Asia Pacific region showcased a mixed trajectory. From the commencement of Q2 till the mid of Q2, the Salicylic acid market showed stable price inflation due to static domestic and international orders. China's exports saw a better-than-expected market situation in April as consistent inquiries from the domestic and international markets remained above average. Also, the increased production rates to refill the inventories with fresh stock and cater to the upcoming demand market situation remained strong. Also, increased raw material Benzoic acid prices further supported the upward trajectory. China's retail and producer inflation remains subdued as consumer and industrial sectors struggle to recover from the pandemic. Exports decreased by 3.9% year-on-year, while imports increased by 1.9%. The increase in imports was driven by government efforts to revitalize the Chinese economy and boost domestic demand. Later with the termination of mid-Q2, the prices fluctuated, and the prices witnessed to deflate significantly. The price was valued and accessed at USD 2900/MT FOB Shanghai as of the end of Q2 2023, representing an average quarterly decline of 4.84%. Due to the large inventory of Salicylic acid in warehouses, suppliers had to lower their prices to clear existing stocks. In addition, this price trend was essentially supported by the decline in sales in the end-user sectors, and there were no new inquiries from domestic and international suppliers. Meanwhile, the prices of raw materials used to make Salicylic acid also fell during June. This also contributed to the price drop.
Europe
In the second quarter of 2023, the salicylic acid in the European market saw fluctuations. With the inception of the second quarter, prices inflated stably, backed by supply-demand equilibrium. According to the data, Europe's inflation rate decreased to 7.4%. The unexpected oil output cut decision by the OPEC+ members also had a favorable impact on the market environment. Increased energy costs, production expenses, and skyrocketing shipping costs contributed to the market's continued strength. Later in the third month (June) of Q2, the prices depreciated, and within no time, the market for salicylic acid witnessed a substantial drop. At the termination of Q2 2023, the settlement price for Salicylic acid dropped to USD 3000/MT CFR Hamburg with an average quarterly declination of 5.24%. According to a report from the Federal Statistical Office, Germany's inflation rate fell to 7.4% in March 2023. The decline in end-user sector consumer demand and the suppliers' ability to meet local requests with their available inventories are to blame for the drop in Salicylic acid import prices. The production of Salicylic acid API has increased recently due to new plants coming online and existing plants increasing their output. This has led to an increase in the supply of Salicylic acid API on the market, which has put downward pressure on prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Salicylic acid market in the North American region experienced fluctuations with a hiked-up trajectory. With the commencement of Q1 2023, the prices increased in the wake of new production activities and high manufacturing rates in order to cater to the increasing upcoming demand from the downstream sector. When the domestic retailers received high import prices from China in February, prices later increased. Also, after the New Year's festivities were done, market participants placed newer orders and increased the prices they charged for leftover supplies in the domestic market. Yet, an increase in orders from end-user industries maintained a high level of demand and resulted in continuous stock utilization. At the termination of Q1 2023, the settlement price for Salicylic acid rose to USD 3740/MT CFR New York with an average quarterly inclination of 2.97%.
Asia
The Salicylic acid market in the first quarter of 2023 in the Asia Pacific region showcased an upward trajectory. To avoid delivery delays during CNY (Chinese New Year), manufacturers boosted their production capacity due to an unexpected rise in orders from both the domestic and international markets. As the "zero-COVID" regime ended, consumption and overall activity recovered more quickly than they had at first. Also increased braw material benzoic acid prices in the APAC region further supported the positive trajectory. Following Covid-19, the domestic market reopened and contributed to the normalization of the shattered supply networks and downstream sector demand, mainly from the pharmaceutical sector. At the termination of Q1 2023, the price for Salicylic acid was recorded at USD 3520/MT FOB Shanghai with an average inclination of 1.90%.
Europe
In the first quarter of 2023, the salicylic acid market in Europe saw fluctuations. From the start of the first quarter, prices stabilized as retailers had enough inventory to meet the steady demand. Also, an easing of trade activity and a slowing in inflation had an impact on the general market trend. When German retailers received high import prices from China in February, prices later increased at the start of the second month. Nonetheless, a rise in orders from end-user industries kept demand high and led to continuous stock use. However, the government recently enacted a rule requiring suppliers to maintain six weeks' worth of inventory in order to reduce shortages, which led to market participants ordering large quantities of inventory and ultimately influencing pricing. At the termination of Q1 2023, the settlement price for Salicylic acid rose to USD 3750/MT CFR Hamburg with an average quarterly inclination of 0.81%.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the North American region's Salicylic Acid market experienced fluctuations. Prices started to increase in Q4 2022 and continued to do so through the second month of the fourth quarter as a result of high manufacturing costs, numerous logistical issues, and rising inflation. Additionally, the market position was maintained well by growing transportation costs and port congestion at the major ports. Moreover, the market was favorably impacted by disarray and a slowdown in API output on the basis of increased energy prices. Salicylic Acid prices rose as a result of rising Feedstock Phenol prices. Later in December, prices started to drop as a result of weakening inflation and declining end-user sector demand as the festival season drew near. Values were accessed at USD 3940/MT CFR Houston at the end of Q4 with an average quarterly inclination of 0.47%.
Asia
The Asia Pacific region's Salicylic Acid market experienced a volatile trajectory in the fourth quarter of 2022. At the start of Q4 2022, it was noted that prices would rise through the second month of the quarter due to rising end-user sector demand, several logistical challenges, and rising inflation. The market was also impacted by the tight zero covid rules and frequent lockdowns in the Chinese regions. The market remained competitive due to growing production costs brought on by rising energy costs as well as increased domestic production to fill orders from both local and foreign markets. Rising phenol feedstock costs had an impact on the salicylic acid industry as well. Salicylic acid costs did, however, decline later in December because domestic retailers had sufficient stock on hand. Additionally, the market remained weak due to the policies' easing and the lackluster downstream demand. Towards the end of Q4, the prices of Salicylic acid were recorded at USD 3390/ton FOB Shanghai (China), with an average quarterly inclination of 0.42%.
Europe
In the fourth quarter of 2022, Salicylic Acid prices in the European region had a see-saw pattern. The downstream market for the pharmaceutical sector was seen to continue to have stable demand for salicylic acid. The ongoing port congestion and supply disruption in the European region influenced the supply chain, which resulted in price hikes in the first two months of Q4 022. Hiked-up freight charges also affected the trajectory of salicylic acid. Retailers in Europe decide to replenish their inventories in significant amounts because of the upcoming Christmas season and the necessity to prepare for it. Additionally, the market scenario remained tight due to rising feedstock phenol prices in the European region. However, the prices decreased considerably in the month of December on the back of ease in inflation, relief in port congestions, and a handful of inventories among the domestic merchants. Towards the end of Q4 2022, the prices of Salicylic acid were recorded at USD 4390/ton with an average quarterly inclination of 0.21%.
For the Quarter Ending September 2022
North America
With the commencement of the third quarter of 2022, the Salicylic acid market showcased decreasing sentiments in the North American region owing to improved and firm supply dynamics and lowering downstream demand. Regardless of the price decrement of feedstock phenol, the North American region witnessed a gradual depletion in salicylic acid prices. Downstream inquiries from the pharmaceutical and food industry have eased out since the conclusion of Q2 2022. At the end of Q3 2022, the prices continued to drop with stable market sentiments. The salicylic acid values were recorded as USD 3890/ton CFR Houston, with an average quarterly declination of 2.72%.
Asia
The Salicylic acid price showcased see-saw market sentiments during the third quarter of 2022 in the APAC region. At the onset of Q3 2022, the price trajectory witnessed a gradual decrement, owing to stable raw material phenol prices, with the ease in geopolitical tension and production halt in various manufacturing units in the Asian region. In the middle of Q3 2022, the prices showcased slight fluctuation towards the higher end, despite the salicylic acid prices significantly dropping following the decrease in raw material prices and lower inquiries. At the end of Q3 2022, the prices of salicylic acid were recorded at USD 3350/MT FOB Shanghai, with a quarterly declination of 0.48%.
Europe
In the European region, the Salicylic acid market dynamics witnessed depreciation on the back of sluggish demand from downstream pharmaceuticals, skincare, and the food industry. At the onset of the first half of Q3 2022, prices increased marginally due to geopolitical conflicts followed by congestion of trade routes. Regardless of the tense trading atmosphere in the domestic market, salicylic acid prices continued to showcase decreasing trajectory owing to lowering inquiries, sufficient inventories, and stable market sentiments. Towards the end of Q3 2022, the price trend for salicylic acid was recorded to be USD 4365/MT CFR Hamburg with an average quarterly declination of 1.18%. Increasing consumption and surging logistics charges in the domestic market further kept the prices on the higher side of the trajectory
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Salicylic acid showcased decreasing market sentiments in the North American region owing to firm downstream demand and good supply dynamics. Demand from the downstream pharmaceutical and food industry has eased since the conclusion of Q1 2022. Regardless of the slight increase in the prices of raw material phenol, a steady decrement in the prices of salicylic acid was witnessed in the North American region. Towards the termination of Q2 2022, the prices went stable with a moderate increment. At the end of this quarter, the salicylic acid prices were recorded to be USD 5580/ton CFR Houston.
Asia
The Salicylic acid price showcased wobbling market sentiments during the first quarter of 2022 in the Asian market. At the onset of Q2 2022, the price trajectory witnessed a gradual increment, owing to an increase in raw material phenol prices, with ongoing geopolitical tension Russia-Ukraine war and production halt in various manufacturing units due to maintenance reasons in the Asian region. Towards the termination of Q2 2022, the salicylic acid prices dropped significantly following the decrement in the prices of raw material phenol. At the end of Q2 2022, the prices of salicylic acid were recorded at USD 3500/MT FOB Shanghai, with a quarterly declination of 0.48%.
Europe
In the European region, the Salicylic acid market dynamics witnessed to surge on the back of increased demand from downstream pharmaceuticals, skincare, and the food industry. At the onset of the first half of Q2 2022, the prices increased marginally owing to geopolitical conflicts; trade routes showed signs of congestion following a tense trade atmosphere in the domestic market. Increasing consumption and surging logistics charges in the domestic market further kept the prices on the higher side of the trajectory. Towards the end of Q2 2022, the price trend for salicylic acid was recorded to be USD 4530/MT CFR Hamburg with a quarterly inclination of 5.86%
