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.
For the Quarter Ending June 2024
North America
In Q2 2024, Salicylic acid pricing in North America exhibited a mixed trajectory influenced by various market factors. The quarter began with rising prices, followed by a decrease in the middle, and concluded with another increase. Market conditions within the USA played a pivotal role, with consumer sentiment and economic indicators significantly impacting demand and prices.
In April, prices declined as overall business activity in the domestic market contracted, driven by a reduction in new orders due to consumer reluctance to spend amidst sluggish economic conditions. The Federal Reserve's decision to maintain high interest rates aimed at curbing inflation inadvertently eroded consumer purchasing power, tempering overall demand. However, in the middle of the quarter, prices rose, attributed to a continued improvement in consumer demand in the USA. U.S. consumer confidence unexpectedly improved in May after three consecutive months of decline, buoyed by optimism about the labor market. Despite this temporary improvement, prices fell again towards the end of the quarter due to weaker-than-anticipated demand, marked by a significant decrease in fresh orders and a contraction in the order backlog. These occurrences, coupled with diminishing new product orders and reduced expenditure, indicated a gradual economic deceleration.
The percentage change from the previous quarter was recorded at -2%, indicating a slight drop before the strong rebound. Comparing the first and second halves of the quarter, prices showed a 1% increase, further solidifying the trend of rising prices. Concluding Q2, the price of Salicylic Acid USP CFR Houston in the USA reached USD 2980/MT.
APAC
In Q2 2024, the Salicylic acid market in the APAC region displayed varied pricing trends, starting with a decrease at the beginning of the quarter, followed by an incline in the middle, and another decline towards the end. In China, which saw the most pronounced price fluctuations, the overall trends reflected the broader APAC sentiment. Several key factors contributed to the price decline in April. Subdued demand from end-user industries, both domestically and internationally, significantly pressured prices. Additionally, ample supply conditions exacerbated the oversupply issue, leading to competitive price reductions as market participants struggled to clear existing stock. Logistical disruptions and rising shipping costs, particularly due to geopolitical tensions, further added to supply chain challenges, diminishing buyer enthusiasm and curbing price stability. However, prices increased in May as steady consumer demand combined with limited domestic supply created a seller-friendly market environment. A decline in China's factory activity indicator in May, driven by a drop in output, indicated a potential reduction in production capacity. This slowdown in manufacturing output further constrained supply, prompting market participants to quote slightly higher prices. Despite this brief improvement, prices fell again in June due to pessimistic market sentiments. Within China's economic environment, companies faced numerous obstacles, including waning consumer demand and escalating financial pressures, which contributed to the downward trend in Salicylic acid prices. The overall pricing environment in China for Salicylic Acid has been stable, concluding the quarter at USD 2745/MT for Salicylic Acid USP FOB Shanghai.
Europe
In Q2 2024, the European Salicylic acid market experienced fluctuating prices due to complex supply and demand dynamics, consumer sentiment, and broader economic influences. Early in the quarter, prices fell, driven by weak market sentiment. This decline was marked by a sharp drop in new orders and total sales volumes, putting significant downward pressure on prices. Inflationary pressures, heightened by strong energy and food prices, further eroded consumer sentiment and exacerbated the price drop. However, in May, prices saw an uptick as demand from end-user industries such as pharmaceuticals, food, and cosmetics improved compared to the previous week. Market participants maintained adequate inventories, ensuring stability in the supply chain and enabling a quick response to market needs. Despite this, prices fell again in June due to insufficient genuine demand in the domestic market. Consumers were hesitant to spend money due to ongoing concerns about persistent inflation and high-interest rates, leading downstream sectors to adopt a cautious "wait and see" approach. However, this quarter's ending price of USD 2890/MT underscores a stable yet positive pricing environment.
