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CanadaIn Q1 2025, diverging market dynamics became more pronounced. Propionic Acid prices in the USA declined further by 2.26% to $771/MT, continuing a trend of softening demand, especially from agricultural sectors during the off-season. The U.S. chemical market also faced increased competition from Asian producers, limiting pricing power.
In China, propionic acid prices surged by 13.45% to $949/MT, driven by strong pre-Lunar New Year restocking, robust demand from the pharmaceutical and food sectors, and tightening domestic supply due to scheduled plant maintenance. Moreover, the potential for export restrictions amid trade policy shifts contributed to bullish sentiment, pushing prices sharply higher in the Chinese market.
In the first half of 2024, global supply faced constraints due to economic challenges in China. Trade-war between USA and China. Furthermore, escalating geopolitical tensions in the Middle East have strained trade routes near the Suez Canal and the Red Sea, tightening the market by disrupting naphtha supplies. This disruption has led to rising ethylene prices, a key feedstock for Propionic Acid production, further contributing to market volatility.
In Q4 2024, Propionic Acid prices softened in the USA, falling by 2.96% to $789/MT, while China experienced a modest increase of 1.15%, reaching $837/MT. The U.S. market saw weaker pricing due to subdued demand from key end-use industries such as animal feed additives and herbicides, combined with stable raw material (propylene) costs and improved supply chain fluidity.
Meanwhile, Chinese prices edged higher as domestic consumption picked up ahead of seasonal production cycles in the food preservation and pharmaceutical sectors. Additionally, limited imports and environmental inspections led to temporary supply constraints in some regions of China, supporting the mild price rebound.
In Q3 2024, several factors are expected to influence the Propionic Acid market across different regions. In North America, prices saw a modest increase of 2.79% in August and are expected to follow this upward trend, despite the negative impact of anti-dumping duties on demand. This rise will be primarily supported by increased demand from the food and beverage sector, which is expected to counterbalance the challenges posed by the duties.
Meanwhile, the Asia-Pacific region is projected to maintain its upward trend, with prices rising by 2.07%. This growth is largely attributed to protectionist policies from China, the region’s largest supplier, which has a significant market share and is shaping the pricing dynamics within the region.
In Q2 of 2024, several factors impacted the Propionic Acid market in different regions. In the USA, prices fell by 11.55% due to the stabilization of ethylene-feedstock prices, which had previously caused volatility. The ongoing Israel-Hamas conflict created new risks for shipping in the region, leading states to implement measures to protect cargo from Houthi rebel attacks in the Red Sea, further influencing market uncertainty.
Speculation regarding the potential imposition of anti-dumping duties by China on US Propionic Acid also weighed on market sentiment, reducing demand for US products and making Chinese alternatives more attractive. Meanwhile, the Asia Pacific region saw a rebound in Q2, with prices rising by 6.5% compared to the previous quarter, driven by renewed demand from the food and beverage sector.
In Q1 2024, several factors contributed to the 10.69% rise in Propionic Acid prices in North America. A significant increase in demand from the food industry in January and February put upward pressure on prices. At the same time, surging feedstock ethylene prices, driven by global plant shutdowns, led to a scarcity of Propionic Acid, further pushing up costs.
A winter storm disrupted power supplies and production, exacerbating the shortage. Export challenges, such as redirected shipping routes, increased transportation costs, and delays, added to the upward price movement, while geopolitical tensions created market uncertainty, intensifying price fluctuations.
These factors also led to higher costs in South America. Conversely, the Asia Pacific region saw a 5% decrease in prices, primarily due to low demand from the food and beverage sector and security issues at the Red Sea, which disrupted trade and affected supply chains.
Q1 2025 saw a renewed uptrend in import-driven pricing, while domestic prices remained relatively steady. CIF Nhava Sheva prices for China-origin Propionic Acid jumped by 11.96% to $1,030/MT, fueled by tight supply conditions in China due to planned plant maintenance, coupled with increased export demand ahead of the Lunar New Year.
Despite this import cost surge, Ex-Mumbai propionic acid prices rose only slightly by 0.74% to $1,370/MT, as Indian suppliers absorbed part of the import pressure to maintain competitive pricing amid still-moderate domestic demand. The widening gap between import and local prices could pose challenges for Indian traders in the coming quarters if global tightness persists.
In Q4 2024, Propionic Acid prices in India reflected a steady market dynamic. CIF Nhava Sheva prices from China increased slightly by 2.22% to $920/MT, amid marginally higher freight rates and seasonal tightening in Chinese supply due to environmental regulations.
Ex-Mumbai prices responded with a 2.26% increase to $1,360/MT, driven by continued steady demand from pharmaceutical and food preservation sectors as year-end production cycles ramped up. The narrow movement in both import and domestic prices suggests a balanced market environment, with India maintaining a consistent import flow while local producers met internal demand without significant disruption.
In Q3 2024, the Propionic Acid market in India showed signs of stabilization after previous sharp increases. CIF Nhava Sheva prices for China-origin material rose modestly by 3.45% to $900/MT, largely due to seasonal demand and slight logistic disruptions in Chinese ports.
On the other hand, Ex-Mumbai prices experienced a mild correction, declining by 2.21% to $1,330/MT, as improved import flow and a slight dip in domestic industrial demand helped ease supply pressures. This quarter reflected a rebalancing between international sourcing and domestic supply, with buyers leveraging competitive import options to manage costs.
Q2 2024 marked a sharp uptick in both import and domestic Propionic Acid prices in India. CIF Nhava Sheva prices for Chinese-origin product rose by 6.10% to $870/MT, driven by increased global demand and rising raw material costs, especially for propylene. This cost pressure was more strongly reflected in Ex-Mumbai prices, which surged by 25.93% to $1,360/MT.
Domestic price escalation was also fueled by reduced inventory levels and increased consumption across food-grade and chemical sectors preparing for monsoon stockpiling. The sharp divergence between domestic and imported pricing underscored India’s sensitivity to international cost fluctuations and the strain on local supply during demand peaks.
In Q1 2024, Propionic Acid prices in India remained relatively stable on the import front but showed notable domestic movement. CIF Nhava Sheva prices for China-origin material stayed flat at $820/MT, indicating steady global supply and minimal change in freight or feedstock costs.
However, Ex-Mumbai prices rose by 5.88% to $1,080/MT, primarily due to increased domestic demand from food preservation, animal feed, and pharmaceutical sectors as industrial activity picked up post-winter. The widening gap between import and domestic prices suggests that Indian buyers leaned more heavily on local sources amid logistical uncertainties and longer lead times from overseas suppliers.
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These events underscore the Propionic Acid market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.
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Molecular Weight[g/mol]
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HS Code
Molecular Formula
Propionic Acid (C₃H₆O₂) is a short-chain fatty acid used in preservatives, plastics, and herbicides. It is primarily produced from petroleum-based feedstocks, through the oxidation of propylene or microbial fermentation. Known for its antimicrobial properties, Propionic Acid helps extend the shelf life of food products and is a key ingredient in various chemical and agricultural formulations.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Item | Standard |
| Appearance | Colorless or yellowish oily liquid. |
| Propionic Acid Content, W/% | 99.5Min. |
| Water, % | 0.3Max. |
| Pb, % | 0.001Max. |
| As, % | 0.0003Max. |
| Density (20℃) | 0.993-0.997 |
| Boiling Range (≥95%）/℃ | 138.5-142.5 |
Applications
Propionic Acid is utilized in the production of herbicides, fine chemical intermediates, rubber chemicals, emulsions, and eco-friendly solvents for coatings. It also plays a role in creating artificial fruit flavours, pharmaceuticals, and modified synthetic cellulose fibers, such as cellulose acetate propionate. Due to its ability to inhibit the growth of mold and various bacteria, Propionic Acid is used as a preservative in food—particularly in bread and other baked goods when combined with sodium or calcium salts—as well as in animal feed (either directly or as its ammonium salt) and grains.
The pricing of Propionic Acid is influenced by several key factors. First, raw material costs, particularly those of ethylene and other inputs used in its production, are crucial. Any fluctuations in the prices of these materials can directly impact the overall cost of Propionic Acid. Additionally, market demand plays a significant role; high demand in sectors such as agriculture, pharmaceuticals, and food preservation can drive prices up. Supply chain dynamics, including production capacity and transportation costs, also affect pricing. Lastly, global economic conditions and trade policies can create additional volatility in pricing, making it essential for procurement heads to stay informed about these variables.
To ensure competitive pricing for Propionic Acid, procurement heads should adopt a multi-faceted approach. First, building relationships with multiple suppliers can create a competitive landscape, allowing for better negotiations and more favorable pricing terms. Conducting regular market analysis to understand current trends and pricing benchmarks is also vital, as this information can provide leverage in negotiations. Additionally, considering long-term contracts can help lock in prices and provide stability against market fluctuations. Finally, exploring alternative sourcing strategies, such as purchasing from emerging markets, can also yield cost advantages.
Fluctuations in Propionic Acid pricing pose several risks, including budget overruns and increased production costs that can affect overall profitability. To mitigate these risks, procurement heads should implement strategic measures such as hedging contracts to protect against price spikes in raw materials. Additionally, maintaining a flexible inventory strategy can help buffer against sudden price increases, allowing companies to take advantage of lower prices when they occur. Establishing strong relationships with suppliers and diversifying the supply base can also reduce dependence on any single source, enhancing resilience against market volatility. Finally, ongoing monitoring of market conditions and economic indicators will enable proactive adjustments to procurement strategies.
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