propionic acid Pricing Assessment

Name: Propionic Acid Price Trend, Analysis and Forecast
Creator: PriceWatch
Published: 2025-02-17T07:57:02+00:00
License: https://www.price-watch.ai/privacy-policy/

Markets Covered:

United States

China

Vietnam

India

Brazil

Colombia

Korea

Canada

Propionic Acid Price Trend, Analysis and Forecast

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 Q1, prices for Propionic Acid in the North American region rose by 10% due to several factors, demand from the food industry in January 2024 and February 2024 witnessed a significant increase while surging feedstock ethylene prices, driven by global plant shutdowns, led to a scarcity of Propionic Acid. A winter storm disrupted power supplies and production further. Export challenges, including redirected shipping routes, increased costs and delays, alongside geopolitical tensions, affected market sentiment. These fluctuations in North American prices also resulted in higher costs in South America, while the Asia Pacific region saw a 5% decrease due to low demand from the food and beverage sector and security issues at Red Sea.

In Q2, the USA market retraced its trajectory, falling by 11% amid stabilization in ethylene-feedstock prices. The ongoing Israel-Hamas conflict became a new norm, prompting states to take measures to protect their cargo from Houthi rebel attacks in the Red Sea. Speculations about potential anti-dumping duties that China might impose on US Propionic Acid also dampened market sentiment, leading to decreased demand for US Propionic Acid while supporting Chinese products. In contrast, the Asia Pacific region experienced a rebound, with prices rising by 6.5% in Q2 compared to the previous quarter, driven by renewed demand from the food and beverage sector.

In Q3, prices for Propionic Acid in North America are set to stabilize, despite the impact of anti-dumping duties affecting demand in China. Increased demand from the food and beverage sector will offset this impact, leading to a projected 2% rise in USA prices as seen in August. Meanwhile, the Asia-Pacific region is expected to maintain its momentum, with prices increasing by 1.5% in August. This growth is be driven by protectionist policies from China, the region’s largest supplier, which holds a significant market share.

In Q4, Propionic Acid prices may experience a decline as crude oil prices are speculated to drop from the current $82.39 per barrel to around $70 per barrel. This potential decrease in crude prices could negatively impact ethylene prices, a key feedstock for Propionic Acid production, leading to lower prices for the acid itself. Market dynamics may shift as these changes unfold, influencing overall demand and supply conditions.

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is your trusted resource for tracking global propionic acid price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the propionic acid market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

In addition, provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With , you gain a competitive edge in understanding all the elements that influence propionic acid prices worldwide. Stay ahead of the curve with ’s reliable, accurate, and timely propionic acid market data.

Track 's propionic acid price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.

Historically, several events have caused significant fluctuations in propionic acid prices

Russia-Ukraine Conflict (2022-Present): The Russia-Ukraine war has disrupted supply chains and increased energy costs, leading to higher raw material prices and volatility in Propionic Acid pricing due to geopolitical instability and market uncertainty.
COVID-19 Pandemic (2020): The COVID-19 pandemic disrupted supply chains and decreased demand in key sectors like food service and pharmaceuticals, while rising production costs and market volatility further impacted Propionic Acid prices for producers and consumers. Demand plummeted initially but rebounded as needs surged.
Geopolitical Tensions (2024): The increasing unrest, war in West Asia and U.S.-China trade wars levying duties on chemicals have caused price Fluctuations due to disrupted supply chains. For instance, tariffs on ethylene have impacted the cost structure for Propionic Acid production.

These events underscore the Propionic Acid market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

Methodology and Specifications

propionic acid Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: PriceWatch aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.
On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major Propionic Acid production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.
Supply Chain Monitoring: We track the entire Propionic Acid supply chain, from raw material availability (e.g., ethylene) to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: PriceWatch continuously monitors global geopolitical developments, such as conflicts or trade disputes, which can significantly impact Propionic Acid prices. Our analysis includes potential disruptions to supply chains and their immediate and long-term effects on pricing.
Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on Propionic Acid production facilities, particularly in vulnerable regions like the U.S. Gulf Coast. These events are factored into our price forecasts and supply outlooks.
Economic Shifts: PriceWatch evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., Chemical Manufacturing, Cosmetics, Agriculture), to predict shifts in Propionic Acid demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global Propionic Acid production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.
Future Capacity Projections: Our research includes detailed forecasts of upcoming Propionic Acid production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: PriceWatch provides in-depth analysis of demand trends across key sectors, including Food and Beverage, Pharmaceuticals, and Textiles, Agriculture. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.
Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global Propionic Acid pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: PriceWatch utilizes advanced econometric models to forecast Propionic Acid prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.
Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.
Ongoing Support: PriceWatch offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable Propionic Acid pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

74.08 g/mol

CAS No

79-09-4

HS Code

29155000

Molecular Formula

C₃H₆O₂

propionic acid

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

Iso-tanks

Grades Covered

N/A

Incoterms Used

FOB Texas, FOB Shanghai, CIF Nhava Sheva (China), CIF Busan (China, USA), CIF Haiphong (China), CIF Santos (USA), CIF Montreal (USA), CIF Barranquilla (USA)

Synonym

Propanoic acid

Quotation Terms:

25-28 MT (10-15 MT) (India)

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.

Disclaimer

Propionic Acid price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for propionic acid. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What are the primary factors influencing the price of Propionic Acid? +

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.

How can we ensure competitive pricing for Propionic Acid in our procurement process? +

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.

What are the risks associated with fluctuations in Propionic Acid pricing, and how can we mitigate them? +

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.