Asia
In the first half of 2025, salicylic acid prices in Asia showed slight upward movement. This was mostly due to increasing costs of feedstocks like phenol and benzene, which are essential in the production of salicylic acid. Phenol supply tightened because of disruptions in Europe, putting cost pressure on producers in Asia.
Although overall demand in the chemical sector remained soft, the pharmaceutical and agrochemical industries in key markets like China and India maintained stable consumption levels. This steady demand helped support prices to some extent. However, oversupply issues and strong competition from lower-cost manufacturers in the region limited any major price hikes and kept profit margins under pressure.
Europe
In Europe, salicylic acid prices remained unstable during H1’25. The region faced multiple challenges, including volatile feedstock markets and rising operational costs linked to energy prices and carbon taxes. Limited availability of phenol due to plant shutdowns like the one announced by Ineos pushed up production costs.
Even though there were short periods of price increases early in the year, mainly driven by a rise in benzene prices, weak demand from sectors like construction and overall chemical market overcapacity prevented sustained growth. This imbalance between input costs and end-use demand led to inconsistent pricing and margin pressure for manufacturers.
North America
Salicylic acid prices in North America were more stable in comparison to other regions. Domestic production was able to meet the consistent demand from pharmaceutical manufacturers, helping balance the market.
Though uncertainty around tariffs on imported chemicals affected overall market sentiment, it didn’t result in significant price swings. Stable availability of key raw materials like chloroform and methanol also contributed to the price steadiness observed through the first half of the year.
