For the Quarter Ending September 2025
APAC
• In China, the Sodium Propionate Price Index rose by 0.26% quarter-over-quarter, in Q3 2025, reflecting modest demand strength.
• The average Sodium Propionate price for the quarter was approximately USD 1293.33/MT, reflecting balanced supply.
• Sodium Propionate Spot Price remained broadly steady as regional logistics constraints and feedstock costs tempered price movement.
• Sodium Propionate Price Forecast indicates cautious upside if demand signals strengthen in APAC over the next quarter.
• Production Cost Trend for Sodium Propionate in China is influenced by propionic acid feedstock volatility.
• Demand Outlook remains tempered by downstream ester applications and seasonal demand fluctuations in APAC markets.
• Price Index for Sodium Propionate reflects modest regional demand support and export market dynamics in China.
• Sodium Propionate Spot Price movements are sensitive to feedstock costs and regional port congestion levels in China.
• Operational status of major producers in China supports price stability and supply discipline throughout the quarter.
Why did the price of Sodium Propionate change in September 2025 in APAC?
• Supply constraints from intermittent production outages in China limited available spot volumes, supporting price stability.
• Rising feedstock costs and logistics bottlenecks added cost pressures, nudging Spot Price higher marginally recently.
• Weak export demand in certain APAC markets offset some gains, influencing Price Index movements across the quarter.
North America
• In the US, the Sodium Propionate Price Index registered a quarter-over-quarter increase in Q3 2025, following the market trend of asia pacific supported by steady downstream bakery and food preservation demand.
• Sodium Propionate Spot Price remained largely stable as consistent feedstock availability and predictable logistics flows limited major fluctuations.
• Sodium Propionate Price Forecast for North America signals a moderately bullish trend for the next quarter, driven by anticipated seasonal food-industry restocking.
• Production Cost Trend in the US is influenced by propionic acid feedstock costs and domestic energy price movements.
• Demand Outlook in North America is strengthened by robust consumption from bakery preservatives, though minor slowdowns in industrial applications capped upside momentum.
• Price Index stability reflects balanced regional inventories and disciplined supply from major US-based producers.
• Spot Price dynamics remain sensitive to feedstock contract adjustments and trucking rate fluctuations across the US Midwest.
• Operating rates at key North American production facilities remained healthy, ensuring smooth supply throughout most of Q3.
Europe
• In Germany, the Sodium Propionate Price Index recorded a quarterly increase in Q3 2025, driven by firm demand from food preservation and pharmaceutical applications.
• Sodium Propionate Spot Price remained stable as European logistics networks improved, reducing earlier disruptions.
• Sodium Propionate Price Forecast for Europe indicates steady-to-firm pricing next quarter due to expected tightening in feedstock markets.
• Production Cost Trend in Europe is shaped heavily by energy tariffs, compliance costs, and propionic acid feedstock volatility.
• Demand Outlook is supported by strong consumption from bakery and animal nutrition segments, though muted industrial activity kept overall growth moderate.
• Price Index reflects a balanced mix of domestic demand and stable import flows from APAC producers.
• Spot Price movements are influenced by currency fluctuations (EUR/USD) and container freight rate changes.
• European producers maintained conservative operating rates to align supply with demand, supporting overall price stability.
For the Quarter Ending March 2025
North America
During the first quarter of 2025, Sodium propionate prices in the U.S. followed a largely downward trajectory, influenced by subdued demand, high inventory levels, and evolving trade dynamics. In January, weak consumption across the pharmaceutical, food & beverage, and cosmetics sectors, combined with persistent global oversupply and port congestion, led to decline in prices. Buyers remained cautious, limiting new transactions amid concerns over prolonged shipping delays and rising demurrage costs. The bearish trend persisted into February as downstream players prioritized inventory management over fresh procurement, following pre-emptive stockpiling ahead of the Lunar New Year and potential tariff risks.
Imports surged due to front-loaded shipments from China, while falling transpacific freight rates made imported material more competitive, forcing domestic suppliers to lower prices. In March, although the month began with similar bearish sentiment, market dynamics shifted following the U.S. government's imposition of tariffs on major trading partners, including China. This triggered accelerated procurement, particularly in the pharmaceutical and food & beverage industries, adding short-term upward pressure on prices.
Simultaneously, renewed port congestion disrupted import flows, tightening spot availability. Slight improvements in consumer sentiment, backed by easing inflation, also contributed to demand stabilization. Despite these late-quarter developments, Q1 2025 closed with Sodium propionate prices remaining weak overall, shaped by oversupply, cautious buying behavior, and ongoing economic and trade policy uncertainty.
Asia
In Q1 2025, the Sodium Propionate market in China experienced a fluctuating price trend, starting with downward pressure in January and February, followed by a rebound in March. In January, the market was burdened by sluggish downstream demand and excess inventory, with key sectors like pharmaceuticals, healthcare, and food showing weak consumption. Economic deflation, evidenced by a 2.3% year-over-year drop in producer prices, coupled with uncertainties around potential U.S. tariffs, caused both domestic and international buyers to hold off on purchases, further dampening prices.
February saw continued price declines as the oversupply situation persisted, exacerbated by the Lunar New Year holiday, which slowed industrial activity. Trade restrictions and weak demand from major importing countries like the U.S. and Germany contributed to a stagnant market. However, in March, prices began to rise due to tighter supply and stronger demand. The clearance of discounted pre-holiday inventories left a temporary gap in the market, and rising production costs, along with logistical delays such as port congestion, exerted upward pressure on prices. The post-holiday recovery in key sectors, particularly food processing and pharmaceuticals, further supported the price increase.
By March, the market showed signs of stabilization, with global demand tightening domestic availability, driving prices up as manufacturers adjusted to the new demand levels. The overall trend for Q1 2025 was marked by volatility but ended on a positive note, reflecting improved market conditions.
Europe
The German Sodium propionate market experienced a volatile pricing trend throughout Q1 2025, beginning with a significant decline in January and February before rebounding in March. In January, prices dropped sharply due to ample supply and aggressive offers from Asian exporters. Despite ongoing logistical disruptions and 28 blank sailings recorded that month, market conditions favored buyers. High inventory levels, steady production, and limited demand—especially from industrial and cleaning sectors—shifted the pricing power to purchasers who secured favorable Q1 contracts in anticipation of the Lunar New Year.
This downward trend extended into February, driven by sluggish demand from key sectors such as pharmaceuticals and food and beverages. Early stockpiling, cautious procurement behavior, and high inventories reduced market activity. On the supply side, improved production rates and a significant drop in ocean freight costs—down by 50%—boosted availability and further pressured prices. A stronger euro also made imports cheaper, intensifying competition among sellers and prompting further price reductions.
However, the market reversed course in March as severe port congestion and labor strikes across major European ports—particularly in Hamburg—disrupted supply chains and reduced import availability. With tightening supply, stable freight rates, and restocking from end-user industries, prices rose notably. Buyers accepted higher prices amid delivery uncertainties, marking a shift toward a firmer market as the quarter closed, setting the stage for a tighter supply environment in Q2.
For the Quarter Ending December 2024
North America
The U.S. Sodium Propionate market experienced notable volatility in Q4 2024, with prices rising sharply in October before declining through year-end. October's price surge was driven by seasonal demand, higher Asian shipping costs, and disruptions from ILWU strikes, alongside rising raw material costs (Caustic soda and methanol) and supply challenges in Ukraine and the Middle East.
By November, the market shifted downward as domestic stocks dwindled and export prices fell. Suppliers resorted to aggressive pricing strategies, but end-users remained cautious. Market uncertainty grew over potential January 2025 ILA contract negotiations, with proposed tariffs of 10-20% on general imports and up to 60% on Chinese goods.
December saw continued price drops, influenced by weak pharmaceutical demand, elevated inventories, and strong competition from Asian imports. Despite stable production, the market remained oversupplied, and limited buyer interest reflected overall negative sentiment, especially in the export market, with high port inventories adding to the pessimistic outlook.
Asia
China's Sodium Propionate market experienced a V-shaped pattern - initial decline followed by a steep year-end recovery. The quarter kicked off with a market slump as oversupply dominated October. Expanded production paired with declining Chinese imports created a glut, forcing manufacturers to slash prices. November saw continued softening, though less dramatic, with producers tactically reducing stockpiles ahead of holidays despite sustained demand.
December brought a game-changing reversal. A perfect storm emerged from three crucial elements: calculated production cuts, critically low inventory levels, and robust Western demand post-holidays. Manufacturers' unprecedented move to halt price quotes signaled a power shift, suggesting a deliberate strategy to reset market dynamics. This transformed the traditional pricing structure, potentially establishing a new normal at elevated levels and reshaping global trade patterns in the Sodium Propionate sector. This quarter-end upheaval hints at Chinese suppliers actively repositioning themselves for enhanced market control, with lasting implications for worldwide supply chains and pricing mechanisms.
Europe
The German Sodium Propionate market experienced consistent price declines throughout Q4 2024, driven by weak demand and oversupply. In October, prices briefly increased due to supply chain issues and high input costs, but by November, falling production costs across the Eurozone and sluggish demand reversed the trend. Manufacturers responded with price cuts and promotional offers.
By December, prices dropped further as supply from both regional producers and imports remained abundant. The weakening Euro against the dollar added pressure, with buyers limiting purchases to immediate needs. Excess inventory from pre-holiday stocking and favorable import conditions led suppliers to aggressively destock.
Throughout the quarter, market conditions were largely shaped by inventory management rather than demand fluctuations, creating a persistent bearish trend. Manufacturers focused on reducing excess stock with competitive pricing, while downstream demand remained weak, ensuring the market's overall downward momentum continued.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American region experienced a significant increase in Sodium Propionate prices, influenced by multiple market factors. Persistent demand from end-user sectors, supply chain disruptions, and decreased manufacturing activity due to adverse weather contributed to this surge. As the USA is an importing nation, it mirrored the rising prices of exporting countries, amplifying the market's sensitivity to supply-demand dynamics.
Strong regional and international quotations further fueled the price escalation. Additionally, the appreciation of the Chinese yuan against the US dollar enhanced export competitiveness, driving prices upward. The raw material market also saw price increases, partly due to unexpected shutdowns at plants, which affected production costs. China, in particular, experienced significant price fluctuations that reflected broader market trends and seasonal variations.
These combined factors created a complex environment, significantly impacting pricing strategies and market dynamics across the region. The interplay of supply and demand, currency fluctuations, and raw material costs played a critical role in shaping the Sodium Propionate market landscape during this period.
Asia
In Q3 2024, the APAC region experienced a significant uptrend in Sodium Propionate pricing, particularly in China, which saw the most pronounced price fluctuations. This price increase was driven by heightened demand from end-user sectors, supply shortages, and supply chain disruptions. The market operated within a tight supply-demand balance, contributing to the surge in prices.
Additionally, the depreciation of the Chinese yuan against the US dollar and reduced manufacturing activity due to adverse weather conditions impacted pricing dynamics. In September 2024, Sodium Propionate prices rose sharply amid ongoing supply chain challenges. Factors such as declining stock levels among major producers and strong demand in both domestic and international markets contributed to this trend.
The situation was worsened by China's worst typhoon in 75 years, which led to significant shipping disruptions, including berth delays of 36 to 60 hours. These challenges resulted in transportation bottlenecks, increased freight costs, and inventory shortages. By the end of the quarter, the price settled at USD 1290/MT FOB Shanghai, with an average quarterly increase of 1.06%, highlighting the continuous upward trajectory in Sodium Propionate prices in the region.
Europe
In Q3 2024, the Sodium Propionate market in Europe experienced a notable uptrend, primarily influenced by complex global dynamics affecting supply chains and market sentiments. Rising production costs in key manufacturing regions and increased demand across various industries significantly contributed to the price surge. Additionally, currency fluctuations further impacted import expenses.
The situation was compounded by uncertainties in raw material prices, worsened by disruptions and maintenance shutdowns at essential production facilities, which fueled further price escalation. Among European nations, Germany recorded the most significant price changes, reflecting the overall upward trend observed throughout the quarter.
Prices consistently exhibited an upward trajectory, underscoring the market's dynamic nature and highlighting a favorable pricing environment. The convergence of these factors indicates that the Sodium Propionate market is adapting to ongoing challenges while positioning itself for potential growth in the coming months. Stakeholders should remain vigilant and responsive to the evolving landscape, as shifts in supply and demand dynamics continue to shape market conditions.
