The US market is poised to witness a significant rise in Salicylic Acid prices at the start of 2025, driven by a combination of demand dynamics, supply chain challenges, and economic factors. This surge is expected to impact various industries, including pharmaceuticals and cosmetics, which rely heavily on Salicylic Acid for product formulation.

The winter season typically marks a peak in demand for Salicylic Acid, driven by its extensive use in skincare and pharmaceutical products. Cosmetic manufacturers rely on Salicylic Acid for anti-acne and exfoliating products, which are particularly sought after in colder months. Additionally, the pharmaceutical industry sees sustained demand for Salicylic Acid, primarily for aspirin production. Given that aspirin consumption tends to rise in the winter due to its use in treating common cold symptoms and for pain relief, this increase in demand for aspirin could directly translate to heightened Salicylic Acid demand, creating further pressure on prices

The supply of Salicylic Acid in the US heavily depends on imports from China, a leading global supplier of active pharmaceutical ingredients (APIs). The upcoming Chinese Lunar New Year holiday, scheduled for mid-February 2025, is set to disrupt production and shipping activities in China. Traditionally, factories in China shut down for an extended period during this celebration, significantly reducing output. Additionally, transportation networks are strained as workers take time off, causing delays in both domestic and international shipments.

To offset these impacts, numerous Chinese suppliers expedite shipments in early January. However, this creates congestion at ports and logistics hubs, which can delay deliveries to the US and other markets. For US buyers, this disruption could coincide with a peak in demand, potentially leading to supply shortages and delays, thereby tightening the market and driving Salicylic Acid prices higher.

The looming possibility of significant tariffs on Chinese imports under President Trump's upcoming administration could contribute to an increase in Salicylic Acid prices in the USA. With tariffs potentially reaching up to 60%, US importers are already accelerating shipments of goods to avoid these higher costs. This rush to bring in products, including Salicylic Acid, may lead to a temporary spike in demand, creating pressure on the supply chain, which could also push the prices upward.

According to ChemAnalyst's analysis, Salicylic Acid prices are likely to stay elevated in the near future. US buyers are expected to encounter higher procurement costs, especially due to reduced supply from Chinese suppliers during the Lunar New Year period. Additionally, shifting political dynamics may add further pressure on Salicylic Acid prices.