Track Propionic Acid Price Index Historical and Forecast

Executive Summary

The global Propionic Acid market experienced a year of measured volatility in 2025, shaped by shifting feedstock economics, seasonal agricultural cycles, inventory adjustments, and logistics disruptions. Across North America, APAC, and Europe, prices reflected a recurring pattern of early-year recovery, mid-year correction, late-quarter restocking strength, and Q4 demand softening.

In North America, prices fluctuated between USD 727/MT and USD 822/MT during the year before settling at USD 767.67/MT in Q4 amid oversupply and weaker procurement. APAC markets, led by China, witnessed sharper corrections due to sustained plant operations and inventory accumulation, with Q4 prices averaging USD 725.67/MT. Europe followed a comparable trajectory, with seasonal restocking in Q1 and Q3 offset by subdued downstream demand and port congestion pressures toward year-end.

Lower ethylene feedstock costs remained a recurring theme across regions, reducing production expenses but failing to provide strong upward support to spot prices in oversupplied environments. Seasonal herbicide demand and food preservative consumption continued to anchor baseline offtake, though buying behavior remained cautious throughout the year.

Looking ahead, the Propionic Acid price forecast indicates moderate oscillations in the near term, supported by incremental export flows and seasonal restocking cycles, while structural supply discipline and inventory normalization will dictate broader market direction.

Introduction to the Propionic Acid Market

Propionic Acid is a key organic acid widely used in food preservation, animal feed additives, and herbicide formulations. The market is closely linked to agricultural production cycles and feedstock ethylene trends, making it sensitive to both upstream petrochemical movements and downstream seasonal demand.

Throughout 2025, Propionic Acid markets globally reflected balanced-to-oversupplied conditions, with feedstock softness and stable production runs shaping cost structures. While producers maintained operating rates to protect market share and margins, buyers adopted short-term procurement strategies amid uncertain export dynamics and fluctuating logistics conditions.

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Global Price Overview 2025

Globally, 2025 was characterized by three primary drivers

Ethylene feedstock cost movements
• Seasonal agricultural restocking patterns
• Inventory and logistics management
The first quarter showed firm recovery across regions, particularly in February and March, supported by supply disruptions and seasonal agrochemical demand. Q2 saw widespread corrections due to oversupply and weaker export inquiries. Q3 demonstrated mixed performance with seasonal restocking support in Western markets but persistent pressure in Asia. Q4 ended with broad softness across all major producing regions due to inventory accumulation and muted downstream procurement.

Quarterly Price Snapshot 2025

Below is a consolidated clean-text table summarizing regional quarterly average prices and key movements.

Propionic Acid Quarterly Price Summary 2025

Region | Quarter | Price Movement | Avg Price (USD/MT) | Key Driver

North America | Q1 2025 | Rising | Firm upward trend | Supply disruption and seasonal demand
North America | Q2 2025 | Declining | 782 (June FOB) | Oversupply and weak ethylene
North America | Q3 2025 | Rising | 822.00 | Seasonal restocking
North America | Q4 2025 | -6.61% QoQ | 767.67 | Inventory buildup

APAC China | Q1 2025 | Rising | Firm trend | Export demand and tight supply
APAC China | Q2 2025 | -5.9% | 871 (June FOB) | Oversupply and logistics delays
APAC China | Q3 2025 | -9.9% | 824.67 | Port congestion
APAC China | Q4 2025 | -12.0% | 725.67 | Weak demand and high stocks

Europe Germany | Q1 2025 | Rising | Firm trend | Tight supply and energy costs
Europe Germany | Q2 2025 | Softening | Declining trend | Oversupply and weak crude
Europe Germany | Q3 2025 | Rising | Moderate gain | Seasonal restocking
Europe Germany | Q4 2025 | Softening | Stable to lower | Port congestion and subdued demand

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Regional Analysis

North America

North America demonstrated moderate cyclicality through 2025. Q1 began with soft sentiment before winter storms along the Gulf Coast tightened logistics and improved pricing momentum. Seasonal agricultural preparations further supported demand.

In Q2, the market corrected sharply. Propionic Acid prices fell by 4.6 percent in the US market, settling at USD 782/MT FOB Houston in June. Weak ethylene feedstock costs and rising OPEC+ crude output pressured upstream economics. Supply remained uninterrupted, leading to inventory accumulation during April and May.

Q3 saw a rebound with a 3.05 percent quarter-on-quarter increase, supported by herbicide restocking and stable food preservative consumption. Average Q3 prices reached approximately USD 822.00/MT.

However, Q4 reversed gains. Prices declined by 6.61 percent quarter-on-quarter to USD 767.67/MT. Oversupply from steady Gulf Coast production, smooth logistics, and weak exports increased inventories. Although ethylene costs eased, cost savings did not stimulate fresh spot demand. Buyers adopted defensive procurement strategies, leading sellers to increase commercial discounts.

The production cost trend remained favorable due to cheaper ethylene, reducing break-even levels and supporting continued plant operations.

Asia Pacific

China led APAC price movements with sharper volatility compared to Western markets.

Q1 experienced upward momentum due to tight supply and strong export demand. However, Q2 saw prices decline by 5.9 percent, settling near USD 871/MT FOB Shanghai. Oversupply and muted export inquiries weighed heavily on sentiment. Port congestion at Shanghai and Ningbo further complicated logistics but did not support pricing due to weak downstream absorption.

Q3 registered a deeper 9.9 percent quarter-on-quarter decline to USD 824.67/MT. Sustained plant operating rates and inventory buildup suppressed upward price movement. Food preservative and agrochemical sectors remained seasonally stable but insufficient to offset supply overhang.

Q4 witnessed the sharpest correction, with prices falling 12 percent quarter-on-quarter to USD 725.67/MT. Domestic plants ran steadily while year-end destocking reduced procurement. Lower ethylene feedstock and energy costs further encouraged output, intensifying oversupply.

Logistical delays and defensive pricing strategies constrained spot activity, while exporters awaited clearer post-holiday buying signals.

Europe

Europe followed a similar pattern but with greater sensitivity to energy costs and port congestion.

Q1 showed firm pricing driven by tight supply, elevated energy costs, and improving spring demand. Producers implemented price increases citing higher input and logistics expenses.

In Q2, prices softened amid weaker upstream crude oil benchmarks and adequate inventory levels. Demand from food preservatives and herbicides remained stable but insufficient to counter oversupply.

Q3 saw moderate recovery supported by seasonal restocking. Inventory levels remained adequate, preventing aggressive price escalation.

Q4 ended with softness due to persistent port congestion and high onshore inventories. Export delays reduced outbound trade flows, limiting pricing flexibility. While ethylene feedstock costs eased, the savings failed to generate upward spot support. Producers maintained steady operating rates, reinforcing competitive offers.

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Production and Cost Structure Insights

Propionic Acid production relies heavily on ethylene feedstock, making upstream petrochemical trends critical to pricing. In 2025, softer crude oil benchmarks and sustained ethane production in North America reduced ethylene costs. Similar trends were observed in APAC and Europe.

Lower feedstock costs improved producer margins and reduced break-even thresholds. However, in oversupplied markets, this dynamic encouraged steady production rather than supply rationalization, contributing to inventory accumulation and price softness.

Energy costs in Europe and logistics expenses in Asia also influenced marginal production economics and export competitiveness.

Historical Quarterly Review Summary

Q1 2025 demonstrated recovery driven by supply disruptions and seasonal demand.
Q2 2025 showed correction due to oversupply and weaker upstream support.
Q3 2025 highlighted regional divergence with restocking support in Western markets and continued softness in APAC.
Q4 2025 reflected inventory-driven declines across all regions.

Overall, 2025 remained a year of inventory management and cost-led production stability rather than structural supply shortages.

Procurement Outlook 2026

The near-term forecast suggests modest volatility with potential stabilization as inventories normalize. Seasonal restocking in agriculture and resilient food preservative demand will continue to anchor baseline consumption.

Buyers are expected to maintain short-cycle procurement strategies, especially in APAC. Export dynamics and port efficiency will remain critical to price recovery potential in Europe and China.

Producers are likely to monitor operating rates more closely if margin compression intensifies.

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Frequently Asked Questions

Why did Propionic Acid prices decline in Q4 2025

Prices declined due to oversupply, high inventories, muted export inquiries, and cautious downstream procurement across North America, APAC, and Europe.

How did ethylene feedstock impact the market

Lower ethylene prices reduced production costs and break-even levels. However, cost savings did not translate into higher prices because supply remained ample.

What role did logistics play in 2025 pricing

Port congestion in Shanghai, Ningbo, and parts of Europe slowed exports and increased onshore inventory levels, limiting price support despite occasional demand improvements.

Which sectors drive Propionic Acid demand

Food preservation, animal feed additives, and herbicide manufacturing remain the primary demand pillars globally.

What is the near-term price forecast

The market is expected to witness controlled oscillations with seasonal restocking providing intermittent support, while supply discipline and export recovery determine sustained momentum.

How ChemAnalyst Supports Market Participants

ChemAnalyst provides real-time Propionic Acid price assessments, weekly updates, and forward-looking forecasts across major producing regions. With analyst teams in Houston, Cologne, and New Delhi, ChemAnalyst combines ground-level port intelligence with upstream feedstock monitoring and trade-flow analysis.

The platform tracks plant operating rates, shutdowns, logistics bottlenecks, and inventory movements across more than 50 global ports. Buyers benefit from procurement timing strategies, cost breakdown insights, and quarterly forecast models that anticipate seasonal demand shifts and feedstock-driven volatility.

Through detailed market commentary, price trend analytics, and supply-chain intelligence, ChemAnalyst enables procurement teams, traders, and manufacturers to make informed decisions and mitigate risk in a fluctuating global Propionic Acid market.

For detailed historical data, customized forecasts, and subscription-based price intelligence, market participants can rely on ChemAnalyst to stay ahead of evolving Propionic Acid price dynamics.

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This release was published on openPR.