For the Quarter Ending June 2025
North America
• The Salicylic Acid Price Index in the USA declined by 1.63% in April 2025, followed by mild increases of 0.33% in May and 0.66% in June, with spot prices rising from USD 3020/MT to USD 3050/MT by quarter-end.
• In April, high inventory levels among U.S. importers—driven by frontloaded shipments ahead of a 145% tariff imposition—suppressed demand and pulled down the product spot price, despite steep import duties.
• April’s product demand outlook was weak, as downstream buyers reduced procurement due to overstocking and uncertainty around trade policy, prompting suppliers to cut prices to clear excess inventories.
• The product production cost trend in April remained partially mitigated as supply chain players absorbed part of the cost burden, avoiding full tariff pass-through to end users.
• May saw a slight uptick in the Salicylic Acid Price Index, driven by a 90-day suspension of Chinese pharma tariffs. This led to intensified frontloading and logistical disruptions, especially at the Los Angeles and New York ports.
• A 300% surge in booking volumes from China, coupled with container shortages and new Peak Season Surcharges, significantly elevated the landed cost of Salicylic acid in May.
• Product demand outlook improved in May, as buyers rushed to secure inventory before the tariff suspension expired. The U.S. inflation rate of just 0.1% supported procurement confidence and restocking.
• In June, product spot prices edged up slightly due to extended tariff reprieve and early stockpiling by importers, especially for seasonal skincare applications.
• June’s product demand outlook remained robust as summer demand from the cosmetic and pharmaceutical sectors boosted forward buying, aided by inflation concerns and steady economic sentiment.
• Salicylic Acid prices are likely to increase in July 2025, driven by continued frontloading behavior, tariff-related uncertainties, and moderate port congestion due to early movement of holiday-season goods.
APAC
• The Salicylic Acid Price Index in China rose from USD 2880/MT in April to USD 2900/MT in May before falling in June, marking a Q2 fluctuation of +0.70% in April, +0.69% in May, and a notable -1.72% in June.
• In April, the salicylic acid spot price surged due to active stockpiling by pharmaceutical players, tight domestic supply, and accelerated foreign procurement ahead of the U.S. 145% tariff deadline on April 10, supporting a firm product demand outlook.
• Domestic demand in April was boosted by seasonal restocking and inventory planning, while product spot price gains were also driven by U.S. buyers front-loading shipments ahead of summer maintenance shutdowns in China.
• Despite China's manufacturing PMI dropping to 49.0 in April, logistics congestion and tariff-induced outbound order surges led to inventory strain and high product production cost trend pressures.
• In May, the Salicylic Acid Price Index declined as external demand weakened amid U.S. tariffs, and Chinese exporters faced rising unsold inventories due to reduced foreign offtake and slower domestic sales.
• Lower phenol feedstock prices and a weak export environment pushed manufacturers to cut prices to clear backlogs, indicating a deflationary product production cost trend in May.
• The product demand outlook worsened in May due to tariff barriers, buyer hesitation, and the extended Labor Day holiday (May 1–5), which dampened trade activity and slowed international orders.
• By June, the Salicylic Acid Price Index dipped again, impacted by continued sluggish demand and heightened supply-side competition, with overseas customers holding back from new purchases due to sufficient stocks and falling freight rates.
• Declining logistics costs and a 3.6% YoY fall in China’s PPI reduced the pricing leverage of Chinese exporters, weakening the product spot price further in global markets.
• Price forecast for July 2025: A short-term rise in salicylic acid spot price is likely, driven by replenishment buying from international markets post-June dip. However, persistent inventory pressure and steady production may limit the upside.
Europe
• The Salicylic Acid Price Index in Germany edged up in April and May—rising from USD 2970/MT in April to USD 2990/MT in May—before retreating slightly in June, indicating a quarterly shift of +0.34% in April, +0.67% in May, and -1.00% in June.
• In April 2025, the salicylic acid spot price increased moderately due to seasonal logistics disruptions such as Easter holiday delays, port congestion at Hamburg and Antwerp, and rerouted global shipments, which squeezed local availability.
• The product demand outlook was supported by improved consumer sentiment amid easing inflation (CPI at 2.1%), leading to preemptive restocking across the pharmaceutical and cosmetics sectors, reinforcing firm pricing.
• May 2025 witnessed another marginal rise in the Price Index, supported by severe congestion at North European ports and a pre-GRI (General Rate Increase) rush in bookings, tightening the supply chain and limiting import volumes.
• Shipping space constraints and high yard utilization encouraged sellers to revise offers upward, while forward-booking behavior by wholesalers intensified spot market demand in May.
• By June 2025, the salicylic acid price index declined slightly, as inventory liquidation ahead of H2, and cautious procurement patterns amid PSS (Peak Season Surcharge) deferral softened market momentum.
• Despite persistent port congestion in June, the delay in freight surcharges meant product production cost trend remained steady, allowing buyers to hold off on forward orders, creating mild downward pressure on prices.
• Demand slowed in June as downstream sectors paused procurement, relying on earlier stockpiles, reflecting a conservative approach before potential freight hikes in July.
• Looking ahead to July 2025, prices are likely to increase, driven by a moderate revival in restocking activities following Q2 inventory drawdowns and implementation of postponed PSS, which will raise landed costs of imports.
For the Quarter Ending March 2025
North America
In first quarter of 2025, Salicylic Acid prices in the U.S. exhibited a volatile trend, shaped by shifting trade policies, inventory strategies, and economic sentiment. January saw a sharp price surge as buyers accelerated imports to avoid a proposed 10% tariff on Chinese goods effective February 1. Fears of a port strike and pre-Lunar New Year stocking further strained supply chains and drove prices higher.
However, in February, prices dropped significantly due to increased Chinese production post-holiday, lower transpacific shipping rates, and subdued demand amid inflation concerns and cautious buyer sentiment. The market was also weighed down by prior overstocking and uncertainty surrounding potential new tariffs, including those on Indian pharmaceuticals.
In March, prices rebounded moderately, rising 1.99% as depleted inventories and heightened trade tensions—marked by tariff implementation on March 4—spurred precautionary buying. Easing inflation also improved buyer confidence. Overall, the quarter reflected a cycle of front-loaded demand, mid-quarter oversupply, and late-quarter recovery driven by trade volatility and improving sentiment.
Asia Pacific
In Q1 2025, Salicylic acid prices in China displayed a fluctuating trend shaped by evolving supply-demand dynamics and trade concerns. January witnessed a sharp price increase driven by strong demand from pharmaceutical and healthcare sectors, reduced production ahead of the Lunar New Year, and a surge in export activity as suppliers rushed to ship goods before a new round of U.S. tariffs. Anticipatory buying and tight supply supported bullish pricing. However, prices declined significantly in February as manufacturing resumed post-holiday, boosting supply and inventories. Weak domestic consumption, sluggish activity in cosmetics and healthcare sectors, and diminished export competitiveness due to tariffs led to softer demand. The market responded with downward price adjustments to stimulate sales. In March, prices rose modestly as demand improved while supply lagged behind. Earlier price drops had discouraged stockpiling, resulting in low inventories. Restocking by domestic buyers, steady pharmaceutical demand, and increased foreign procurement ahead of possible trade restrictions strained supply. Additionally, higher phenol costs supported the upward movement. Overall, Q1 was marked by a sharp January rise, a February correction, and a March recovery amid seasonal, economic, and geopolitical influences.
Europe
In Q1 2025, Salicylic acid prices in Germany displayed a fluctuating trend, influenced by changing economic sentiment, logistical dynamics, and downstream demand. January saw a significant price increase, supported by improved business morale, restocking by the cosmetics, healthcare, and pharmaceutical sectors, and early Lunar New Year stockpiling amid Red Sea shipping disruptions. However, this bullish trend reversed in February, as prices declined due to ample inventories, weakened consumer sentiment, and cost-effective imports enabled by a stronger Euro and sharply lower freight rates. Demand softened further with political uncertainties dampening market confidence, prompting suppliers to lower prices. In March, prices rebounded on tightening supply conditions triggered by port congestion and labor unrest across Europe. This, coupled with resumed restocking and a marginal decline in Eurozone inflation, reignited demand, especially from the pharmaceutical sector. Suppliers raised offers to reflect limited availability and revived market interest. Overall, the quarter was marked by volatility—initial bullishness, mid-quarter softness, and a recovery by March, driven by the interplay of supply disruptions, shifting economic sentiment, and sector-specific demand recovery.
For the Quarter Ending December 2024
North America
In Q4 2024, Salicylic acid prices in the USA experienced a steady decline, driven by a combination of economic factors and market dynamics. The October drop was influenced by ongoing inflationary pressures, weakening consumer sentiment, and caution surrounding the U.S. presidential election. Reduced consumer spending and slower corporate investments led to weaker demand, prompting businesses to lower prices, including for Salicylic acid.
In November, softening demand from the pharmaceutical and healthcare sectors, the appreciation of the U.S. dollar, and eased logistical constraints due to the resolution of strikes contributed to a slight price decrease. In December, further price declines were observed due to dampened consumer confidence, a seasonal slowdown in demand, and concerns over rising inflation. Proactive inventory buildup, uncertainty about proposed tariffs, and preparations for the Chinese Lunar New Year further increased supply, putting downward pressure on prices.
Overall, Q4 saw a combination of weaker demand, external disruptions, and an abundance of supply that kept Salicylic acid prices in a downward trend throughout the quarter.
Asia Pacific
In Q4 2024, Salicylic acid prices in China experienced a consistent decline, influenced by a mix of domestic and international factors. The drop in October was mainly attributed to weak domestic consumer demand and a surplus of supply, which intensified competition among suppliers, leading to price reductions. External factors, including global geopolitical uncertainties, particularly concerns over the upcoming U.S. elections and rising protectionist policies, weakened international demand and added downward pressure on prices.
In November, the decline continued due to slower domestic demand from the pharmaceutical sector and high inventory levels held by distributors, creating an oversupply situation. This was further exacerbated by global economic uncertainty, which dampened buying activity. Weak international demand, especially from the U.S. and Europe, coupled with concerns over potential tariffs, made buyers hesitant to commit to large purchases. Additionally, falling raw material costs, including phenol and crude oil, enabled manufacturers to offer more competitive prices.
By December, the decline was reinforced by China's disinflation and reduced demand from key sectors like pharmaceuticals and cosmetics. The softer foreign orders from the U.S. and Europe during the holiday season further curbed consumption. To clear excess stock, suppliers adjusted pricing strategies, driving the overall price reduction. The quarter ended with a competitive and challenging market environment, characterized by weak demand and oversupply.
Europe
In the fourth quarter of 2024, Salicylic acid prices in Germany saw a consistent decline due to weak demand, reduced shipping costs, and lower raw material prices. In October, inflation concerns led to cautious consumer spending, reducing demand for Salicylic acid. Shipping costs along Asia-Europe routes dropped significantly, easing supply constraints and prompting price reductions. November saw continued price pressure with weak demand from key sectors and a 1.9% decrease in energy costs, which helped reduce operational expenses. The well-maintained inventories of suppliers allowed for more competitive pricing. In December, weak demand from sectors like healthcare and cosmetics, coupled with the depreciating euro, discouraged purchases. Ample inventory levels and the focus on clearing stock before the year-end further drove prices down. Additionally, winter weather led to logistical delays, slowing consumer spending and pushing end-users to defer buying decisions. Overall, Q4 witnessed a steady downward trend in Salicylic acid prices in Germany, driven by soften demand from end-users and favorable supply conditions.
For the Quarter Ending September 2024
North America
In Q3 2024, Salicylic Acid prices in North America saw a sharp increase, with the USA leading the surge in price changes. Several key factors contributed to this upward trend. Heightened consumer confidence played a pivotal role, driving strong demand, while early Christmas stockpiling efforts, spurred by the ongoing Red Sea crisis, further tightened supply levels. The looming threat of a potential strike at East and Gulf Coast ports added urgency to the situation, causing importers to expedite shipments, which placed additional strain on the supply chain.
Logistical challenges, coupled with uncertainties surrounding the supply chain, compounded these pressures and further drove prices higher. The market saw a 20% price increase compared to the previous quarter, with an additional 4% rise recorded between the first and second halves of the quarter, reflecting strong bullish sentiment throughout the period.
By the close of Q3 2024, the price of Salicylic Acid USP CFR Houston in the USA had risen to USD 3,640 per metric ton, highlighting a favorable pricing environment. This increase was driven by sustained demand and ongoing supply-side constraints, reflecting the market's strong upward trajectory throughout the quarter.
Asia Pacific
In Q3 2024, the APAC region saw a significant upward trend in Salicylic Acid prices, driven by a range of influential factors. Robust demand, both within domestic markets and across international sectors, played a key role in pushing prices higher. This surge in demand was accompanied by continued supply chain disruptions, most notably the Red Sea crisis, which further strained the availability of Salicylic Acid and heightened market activity. Increased inquiries from various end-use industries, including pharmaceuticals and cosmetics, intensified the upward pricing momentum. China emerged as a focal point for the region’s price volatility, with the market reflecting notable price fluctuations throughout the quarter. This was in part due to global supply challenges and the country’s role as a major production hub. The quarter demonstrated a clear positive correlation between strong demand, constrained supply chains, and rising freight costs, all contributing to the bullish market sentiment. Despite facing additional challenges such as sporadic plant shutdowns and logistical issues, the market managed to maintain a consistent upward trajectory. Compared to the same quarter in 2023, prices for Salicylic Acid showed a substantial increase, underscoring the market's resilience in adapting to evolving economic conditions. By the end of Q3 2024, the price of Salicylic Acid Industrial grade FOB Shanghai reached USD 1,280 per metric ton.
Europe
Throughout Q3 2024, the European market for Salicylic Acid experienced a notable uptrend, with Germany standing out as the country witnessing the most significant price changes. Several key factors fueled this market dynamic. First, robust demand from end-users across sectors, particularly pharmaceuticals, created a solid foundation for price escalation. The easing of inflation rates across Europe alleviated financial pressures on consumers, indirectly supporting higher prices for pharmaceutical products, including Salicylic Acid. As inflation steadied, consumer purchasing power improved, allowing for greater demand resilience despite rising prices. Additionally, the ongoing disruptions in global shipping lanes, particularly due to the Red Sea crisis, prompted retailers and distributors to expedite inventory replenishment. With the critical Christmas trading period approaching, companies sought to avoid potential supply chain bottlenecks by securing inventory early, which kept demand at elevated levels. This rush to stockpile inventory further strained supply, contributing to price increases across the region. In Germany, the market experienced a particularly sharp upward trend, with a 13% price increase from the previous quarter. Between the first and second halves of the quarter, prices rose by an additional 4%, reflecting the sustained demand pressure and logistical challenges that exacerbated the supply crunch. The quarter ended with Salicylic Acid USP grade priced at USD 3,340 per metric ton CFR Hamburg, underscoring the consistently increasing pricing environment throughout Q3.
FAQs
1. Why did Salicylic Acid prices in the USA fall in April but rise in May and June 2025?
In April, high inventories—caused by pre-tariff frontloading—led to weak demand and price cuts. However, in May and June, prices rebounded slightly due to a temporary tariff suspension, seasonal demand from skincare and pharmaceutical sectors, and increased restocking ahead of possible cost escalations.
2. What factors contributed to the price dip of Salicylic Acid in China during June 2025?
The June decline stemmed from weak foreign demand, high inventory levels, and falling logistics and feedstock costs. Buyers delayed purchases due to sufficient stocks and cheaper shipping, while exporters faced reduced pricing power amid deflationary trends in China’s producer price index.
3. How did logistics impact Salicylic Acid prices in Europe during Q2 2025?
Logistics disruptions—such as Easter-related port delays, North European congestion, and anticipated freight rate hikes—tightened supply and supported modest price gains in April and May. But in June, prices dipped slightly as restocking paused and sellers offloaded inventories ahead of the second half of the year.
4. What is the price forecast for Salicylic Acid in July 2025 across regions?
Prices are expected to rise moderately in all three regions. In the USA, tariff concerns and steady demand are likely to drive prices up. In China, post-dip replenishment by overseas buyers may lift prices, though inventory pressure could cap the gains. In Europe, restocking and the rollout of deferred freight surcharges will likely push prices higher.
