The prices of Benzalkonium chloride (BAC) in the USA are expected to remain elevated by the end of November, influenced by several key factors. The primary driver of this trend is increased demand from end-user industries such as healthcare, pharmaceuticals, cosmetics, and food, coupled with a constrained supply in the market. As a result, some market players could raise BAC prices to protect profit margins, further contributing to bullish market sentiment overall.

The rise in BAC prices in the USA is attributed to several interconnected factors, particularly stemming from China's economic recovery. In October, China’s manufacturing activity showed a positive shift, marking its first growth in six months. This was a direct result of government stimulus measures aimed at stabilizing the economy. The Purchasing Managers' Index (PMI) surpassed the 50-point mark, indicating an expansion in manufacturing, while growth in the services sector reinforced signs of a broader economic recovery. As a result, demand for industrial materials, including BAC, from both domestic and export markets in China increased. Given that China is a major exporter of BAC, this uptick in demand could directly influence global supply and demand dynamics, causing a tightening of supply and driving BAC prices upward in the USA.

The US economy's resilience, driven by high business investment and lower interest rates, continues to foster optimism. This is further supported by a surge in consumer sentiment to a seven-month high in early November, reflecting confidence in the economy and personal finances. This increased consumer optimism may lead to higher demand for goods, including BAC, as industries respond to positive market signals. Furthermore, with shippers frontloading imports to mitigate risks from upcoming disruptions—such as the Thanksgiving, Christmas, and Chinese Lunar Year slowdowns—overall demand in the US market is expected to remain high. This proactive inventory buildup, combined with potential supply chain disruptions, is likely to put upward pressure on BAC prices as businesses prepare for both higher consumption and any potential supply shortages during peak demand periods.

According to ChemAnalyst's analysis, BAC prices are expected to remain elevated in the coming months due to several contributing factors. Shipping prices, which are significantly higher than in April, suggest stronger-than-normal demand for this time of year. This demand is being driven by shippers frontloading imports in anticipation of sharp tariff increases under the incoming US administration, as well as the potential for a strike by the International Longshoremen's Association (ILA) at East Coast and Gulf ports after January 15th. These factors are likely to support the upward trajectory of BAC prices. Additionally, with the Lunar New Year falling earlier than usual at the end of January, supply chain pressures are expected to mount starting in late December or early January. These combined dynamics are expected to keep market expectations bullish, maintaining upward pressure on BAC prices.