Indian Phenoxyethanol Market Saw a Price Decline in March 2025, Weak Demand Persist
- 09-Apr-2025 7:00 PM
- Journalist: Joseph Dennie
During March 2025 the Indian Phenoxyethanol market faced dropping prices because of ample supply availability and weakening consumption from primary downstream businesses. The supply side maintained steady domestic production which produced enough material for both the domestic market needs as well as export needs.
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Phenoxyethanol prices declined in India during March 2025 due to strong supply and weak demand.
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Domestic production remained robust, supported by improved manufacturing activity and efficient logistics.
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Appreciation of the Indian Rupee decreased import costs of dollar-denominated raw materials for Phenoxyethanol.
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Demand dropped for Phenoxyethanol from cosmetics, personal care, and pharmaceutical sectors, leading to inventory build-up and price cuts.
Grasping supply stability received backing from India’s Manufacturing Purchasing Managers’ Index results which revealed better performance than February while demonstrating sustained industrial enlargement with amplified manufacturing production. Additionally, the operational outcomes improved within India's main logistics centers. Indian Ports became better by improving their container loading ability along with the efficient rail networks. The cargo movement became more efficient because of these enhancements which simultaneously reduced logistics costs thereby optimizing the complete supply chain system.
On the external front, international freight rates from major Asian sourcing regions saw a decline during the month. This trend helped reduce import costs for essential raw materials of Phenoxyethanol. Additionally, the appreciation of the Indian Rupee against the US Dollar further lowered the import cost of raw materials, enhancing cost efficiency for locally produced Phenoxyethanol. The beneficial currency exchange rate and better supply chain services along with decreased raw material expenses compressed product prices further.
The market demand showed signs of weakness during this period. Market consumption showed a decline in the cosmetics, personal care, and pharmaceutical sectors that depend on Phenoxyethanol as their end user substance. Manufacturers built up their inventories while demand dropped which created an excess supply.
Suppliers lowered prices for Phenoxyethanol since they experienced high inventory levels combined with weak market demand therefore they wanted to both sell their excess stocks and prompt new purchases. Market prices experienced further reduction because manufacturers implemented promotional pricing to enhance their sales numbers. The imbalance between supply strength and demand weakness played a central role in shaping the downward trend for Phenoxyethanol.
The market experts at ChemAnalyst predicts that Phenoxyethanol prices will experience a short-term price rebound in coming months after their March 2025 market reduction. Market equilibrium efforts through supply and demand adjustments will happen within short periods but sustained price direction for Phenoxyethanol depends on macroeconomic conditions along with currency fluctuations and trade policies and adjustments in global market demand patterns.
Operational cost reductions in the Indian Phenoxyethanol market do not diminish its competitive nature. The industry should monitor exchange rate movements along with regulatory changes and consumption trends from downstream industries to manage future price uncertainties successfully.