For the Quarter Ending December 2024
North America
The propionic acid market in North America exhibited varied trends in Q4 2024. Prices increased steadily in October and November, supported by robust demand from the food preservative sector and heightened seasonal procurement. Seasonal activities, such as grain preservation and holiday-driven food production, bolstered procurement, particularly in high-yield farming regions. Manufacturing remained steady, with producers maintaining adequate operating rates to meet domestic and export demand. Despite logistical disruptions caused by earlier port strikes, improved freight handling helped stabilize supply chains.
In December, propionic acid prices decreased slightly due to elevated inventory levels and moderated downstream demand. Seasonal consumption ahead of Christmas kept food preservative demand steady, but cautious procurement strategies and improved shipping availability balanced supply dynamics. Moderated production rates aligned with lower year-end demand, while feedstock ethylene prices remained moderately high but stable. The easing of logistical constraints and sufficient ethylene availability supported stable manufacturing costs. The market reflected balanced conditions as participants focused on aligning output with year-end inventory adjustments, leading to a slight decline in prices amid steady supply and moderate demand.
APAC
The propionic acid market in APAC experienced varied trends in Q4 2024. Prices increased steadily in October and November, supported by strong seasonal demand from the food preservative sector and industrial applications ahead of festive celebrations like Christmas and Lunar New Year. Elevated production rates ensured sufficient supply to meet rising procurement needs, while stable feedstock ethylene costs provided consistent cost support. Export activity surged in November due to high seasonal shipping demand and logistical constraints, adding momentum to the market. However, in December, prices declined as inventories improved and downstream activity moderated. Cautious year-end procurement strategies, coupled with reduced overseas inquiries, softened market sentiment. Improved supply conditions, including higher operating rates and better inventory management, further contributed to the price correction in December. While the food preservative sector drove demand during the quarter, industrial applications also supported market activity. As the quarter ended, the market reflected a balance between earlier demand surges and subsequent moderation due to year-end adjustments and logistical improvements.
Europe
The propionic acid market in Europe, particularly in Germany, displayed mixed trends in Q4 2024. Prices increased steadily in October and November, driven by strong seasonal demand from the food preservation sector and agrochemical applications. Holiday-driven food production and increased grain storage requirements boosted procurement levels, while steady production rates maintained sufficient supply. Export activity from Germany to neighboring countries also contributed to the upward momentum. Despite high energy costs affecting production economics, producers managed to meet demand without significant disruptions.
In December, propionic acid prices experienced a slight decline due to moderated demand and improved inventory levels. Seasonal slowdowns in food preservation and industrial applications, coupled with cautious year-end procurement strategies, contributed to the downward trend. Manufacturers adjusted production rates to align with reduced demand, while improved supply chain conditions helped stabilize market dynamics. Feedstock costs, including ethylene and acetic acid, remained stable, providing consistent production cost support. Overall, the market reflected balanced conditions, with sufficient availability and moderated demand preventing significant price fluctuations as the year drew to a close.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American region witnessed a significant upsurge in Propionic Acid prices, driven by a confluence of factors impacting the market dynamics. Various elements contributed to the price escalation, including tight supply conditions, heightened demand from downstream industries, and cost pressures from increased feedstock and energy prices. These factors collectively exerted upward pressure on prices, creating a bullish market sentiment.
The USA, experiencing the most substantial price changes, saw Propionic Acid prices rise steadily throughout the quarter. Market stability was influenced by robust demand from sectors like food preservation and packaging, coupled with supply constraints and rising production costs. The quarter recorded a notable 2.4% increase in prices compared to the same period last year, indicating a sustained upward trend. Despite a relatively stable performance in the previous quarter, a 7% price difference between the first and second half of Q3 highlighted a notable price shift.
The latest quarter-ending price of USD 789/MT of Propionic Acid DEL Louisiana in the USA signifies the culmination of a quarter characterized by consistent price increments, reflecting a positive pricing environment driven by market forces and industry dynamics.
APAC
In Q3 2024, the APAC region witnessed a mixed trends in propionic acid prices, driven by a confluence of factors that propelled market dynamics towards an upward trajectory. The significant tightening of supply chains, coupled with robust demand across various sectors, played a pivotal role in shaping the pricing landscape. This quarter saw an unprecedented 7.4% increase from the same period last year, reflecting the growing market pressures and evolving industry trends. Moreover, the quarter-on-quarter surge of 9% underscored the rapid escalation in pricing dynamics, indicating a rapid shift in market sentiment. China experienced the most substantial price fluctuations, with price changes reaching their peak levels. The overall trend in propionic acid prices in China showcased a consistent upward movement, influenced by seasonal demand patterns and supply constraints. The correlation between price changes and seasonal factors highlighted the impact of external market forces on pricing strategies. A notable 3% price difference between the first and second half of the quarter emphasized the dynamic nature of market conditions and the evolving pricing environment. In conclusion, the latest quarter-ending price of USD 856/MT of Propionic Acid 99.5% FOB Shanghai in China reflects a prevailing positive sentiment in the pricing environment, characterized by a significant uptrend in market prices.
Europe
In Q3 2024, Europe experienced a marked uptrend in Propionic Acid demand, driven by both limited supply and increasing demand across several industries. Furthermore, the prices of imports from the Asian market were on the higher side leading to higher inventories cost. The upward market sentiment stemmed from various factors: tight supply conditions due to production cuts and logistical bottlenecks, elevated feedstock costs, and higher energy prices. These elements collectively contributed to increased production expenses and a tightening market. Market stability was influenced by robust demand from sectors like food preservation and packaging, coupled with supply constraints and rising production costs. Key demand drivers included the food preservation and animal feed industries, as well as the expanding use of Propionic Acid in pharmaceutical and packaging applications. Despite stable pricing earlier in the year, Q3 saw a significant market shift, with industry sources indicating a notable rise in demand. The quarter’s dynamics underscored the impact of Europe’s high energy costs on chemical production, combined with sustained demand from essential sectors.
For the Quarter Ending June 2024
North America
In Q2 2024, Propionic Acid pricing in North America has been characterized by a persistent decline, influenced by numerous pivotal factors. The quarter witnessed subdued demand from downstream sectors, including food preservatives and agrochemicals, exacerbated by severe weather conditions that hampered agricultural activities. Additionally, an abundant supply of feedstock ethylene and ample inventory levels further pressured manufacturers to lower production costs, resulting in bearish market sentiments. The global trade environment also played a crucial role, with tariffs and regulatory challenges causing disruptions in supply chains, thereby impacting market stability.
In the USA, the maximum price changes were observed, reflecting a significant downward trend. Generally, the prices of Propionic Acid in the USA marked a substantial -16% decrease compared to the same quarter last year, underscoring the ongoing weakness in demand and oversupply issues. From the previous quarter in 2024, the pricing change remained flat at 0%, indicating a stagnant market environment.
By the end of the quarter, the price settled at USD 695/MT DEL Louisiana, reinforcing the negative pricing sentiment. This consistent decline throughout the quarter reflects an unfavorable pricing environment, driven predominantly by weak demand, oversupply, and economic uncertainties, with no significant recovery signals observed.
APAC
Propionic Acid pricing in the APAC region for Q2 2024 experienced significant upward momentum, driven by a confluence of market dynamics and external factors. Key drivers included heightened global temperatures, which amplified the demand for food preservatives, a primary application of propionic acid. Additionally, the surge in upstream crude oil prices, fueled by reduced US commercial crude inventories and OPEC+ production cuts, elevated production costs. Sustained high coal prices, driven by extreme weather conditions, further compounded these costs. Global port congestion, peaking at an 18-month high, exacerbated logistical challenges, escalating freight and container costs, and contributing to overall price increments for petrochemicals in the region.
Focusing on China, the country witnessed pronounced price volatility, with significant increases due to robust domestic and international demand, spurred by the summer season's heightened need for food preservatives. Seasonal spikes in cargo volumes and geopolitical disruptions further strained supply chains, contributing to price hikes. The overall trend was predominantly bullish, reflecting positive market sentiments and increased industrial activity. Compared to the same quarter last year, prices decreased by 13%, indicating a recovery phase from previous lows. However, compared to the previous quarter in 2024, prices surged by 11%, reflecting strong market recovery and demand growth.
Within the quarter, prices rose by 4% from the first to the second half, underscoring consistent incremental demand. The quarter concluded with propionic acid prices at USD 785/MT FOB Shanghai for 99.5% purity, reflecting a positive and upward pricing environment despite previous declines. This consistent increasing sentiment highlights a robust market scenario, driven by supply chain challenges and heightened seasonal demand.
Europe
The European region experienced a mixed pricing environment for Propionic Acid in Q2 2024 due to fluctuations influenced by several factors, such as plant closures, escalating feedstock costs, and rising crude oil prices.
In the Netherlands, Propionic Acid prices displayed a bullish trajectory throughout April and May, primarily driven by robust demand from the food industry downstream and heightened feedstock ethylene costs due to widespread plant shutdowns. Additionally, adverse supply chain compounded market tightness by disrupting power supplies and causing facility closures, thereby affecting propionic acid logistics and availability. However, in June, prices experienced a downturn due to oversupply and the reduced cost of feedstock ethylene, leading to a bearish sentiment in the market.
Overall, the pricing landscape for Propionic Acid in Europe during Q2 2024 remained relatively stable, albeit with some upward pressure due to moderate demand from the food industry and plant closures in other exporting nations.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Propionic Acid in the North America region experienced fluctuations and was influenced by various factors including plant shutdowns, rising feedstock, and increasing upstream crude oil prices.
In the US, propionic acid prices followed a bullish trend in January and February, driven by high demand from the downstream food industry and elevated feedstock ethylene prices due to plant shutdowns worldwide. Additionally, the scarcity caused by the shutdown of several plants in exporting nations like China during the lunar year surged prices globally. Furthermore, the market faced extreme tightness as a winter storm brought freezing temperatures, disrupting power supply and prompting facility shutdowns. This weather event also affected logistics and power availability for propionic acid. However, prices saw a decline in March due to oversupply and low-cost support from feedstock ethylene, resulting in bearish market sentiment.
Overall, the pricing environment for Propionic Acid in Q1 2024 in the USA can be characterized as stable with some upward pressure due to moderate demand from the food industry and shutdowns of plants in other exporting nations. The quarter-ending price for propionic acid in the US was USD 733/MT DEL Louisiana.
APAC
The APAC region witnessed a mixed pricing environment for Propionic Acid in Q1 2024. Several factors influenced market prices during this period. Overall, the market was stable, with some countries experiencing slight increases in prices while others faced declines.
In India, the pricing trends for Propionic Acid were more dynamic. The market saw notable fluctuations in prices throughout the quarter. Prices remained stable in the first half of the quarter, supported by steady market fundamentals and sufficient stockpile availability. However, in the second half of the quarter, prices started to decline due to lower demand from the food and beverage industry and an anticipated decrease in procurement activities. The overall demand for Propionic Acid in India remained moderate, with limited market transactions and reduced purchasing activities.
In terms of seasonality, the quarter saw a surge in demand during the holiday season of lunar year in APAC, particularly in the food preservation industry. This increased demand led to a bullish market, with prices experiencing an upward trend. However, after the holiday season, prices were expected to decline as suppliers received fewer inquiries and the market became more subdued. The latest quarter-ending price stood at INR 85440/MT Ex-Ahmedabad of propionic acid in India. Overall, the pricing environment for Propionic Acid in Q1 2024 in India can be characterized as stable with some downward pressure due to weak demand from the food industry.
Europe
The European region witnessed a mixed pricing environment for Propionic Acid in Q1 2024 due to underwent fluctuations, influenced by several factors such as plant closures, escalating feedstock costs, and rising crude oil prices.
In the Netherlands, Propionic Acid prices displayed a bullish trajectory throughout January and February, primarily fueled by robust demand from the food industry downstream and heightened feedstock ethylene costs attributable to widespread plant shutdowns. Moreover, the global shortage stemming from plant closures in exporting countries like China during the lunar new year period amplified prices worldwide. Additionally, adverse weather conditions, including a winter storm, compounded market tightness by disrupting power supplies and triggering facility closures, thereby affecting propionic acid logistics and availability. However, in March, prices experienced a downturn due to oversupply and the reduced cost of feedstock ethylene, leading to a bearish sentiment in the market.
Overall, the pricing landscape for Propionic Acid in Europe during Q1 2024 remained relatively stable, albeit with some upward pressure owing to moderate demand from the food industry and closures of plants in other exporting nations.
