What’s new in the chemical industry? Market overview and analysis [March 2025]

Rising raw material prices, the glycerine deficit and trade tensions between the US and the EU are increasing pressure on industrial companies. Tariffs, falling stock markets and more expensive energy are forcing flexibility in purchasing and production strategies. China is hitting US coal and Europe is investing billions in raw material independence.

Check out the latest analysis and prepare for change before your competitors do.

Vesmody U-300

Vesmody U-300 prices have been on a downward trend in recent months. However, given current market conditions and the increasing demand for environmentally friendly and high-performance rheology modifiers, it is forecast that prices for this product will soon begin to rise. Chemical companies and paint manufacturers should take these forecasts into account in their purchasing plans to optimise production costs and ensure continuity of supply.

Glycerine

The global glycerine market is facing a shortage, which significantly affects the industrial sector. Glycerine is a key raw material in the production of many products such as cosmetics, pharmaceuticals, cleaning products and plastics. The limited supply of this raw material leads to production delays and increased manufacturing costs. The chemical industry is particularly hard hit by this shortage, forcing manufacturers to look for alternative raw materials or production technologies.

Read the recommended article: Glycerine as an industrial driving force – from biofuels to cosmetics

Copper sulphate

Copper sulphate prices are on an upward trend, which is directly linked to the situation on the global copper market. Forecasts indicate a further shortage of this metal, which is driving up the cost of the raw material used to produce copper sulphate. In addition, uncertainty over planned tariffs on imported copper in the US adds pressure on prices and could lead to further increases in the coming months. Nonetheless, the market remains volatile and future copper sulphate quotations will largely depend on fluctuations in copper prices on exchanges and the supply and demand situation.

Take a look at the recommended article to find out more: Copper sulphate pentahydrate use in agriculture and industry

SBS rubber

Styrene-butadiene-styrene (SBS) rubber prices have seen a marked decline in 2025. The main reason for this trend is the oversupply of raw material in the market and the weakening of demand in key sectors such as road construction and the production of waterproofing materials, including roofing membranes. In addition, the stabilisation of petrochemical raw material prices has led to lower production costs for SBS, resulting in lower market prices. If current conditions persist, SBS rubber prices could remain lower in the coming months, which could benefit the construction industry, but at the same time pose challenges for SBS producers.

NEWS

US-EU trade war: tariffs on raw materials and billions of dollars in losses for industry The US administration introduced 25% tariffs on steel and aluminium, arguing the decision was necessary to protect domestic industry. The EU responded with retaliatory tariffs worth €26 billion on US products including bourbon, jeans and Harley-Davidson motorbikes. The tariff changes are already taking their toll on raw material costs, with steel prices in Europe up 8% in a week and analysts predicting further disruption to global supply chains. The construction, chemical and automotive sectors expect production costs to rise, which could force the renegotiation of long-term contracts.

Falling stock markets and rising oil prices are hitting the industry. The markets’ reaction to the trade war was immediate, with the Dow Jones index losing 600 points, the European DAX down 3.2% and oil prices up 5% in a week. The weakening dollar is making energy commodities more expensive, which in the short term could translate into higher production and transport costs. The chemical and construction sectors are signalling growing concerns about the profitability of ongoing investments, particularly in Europe and Asia, where rising commodity prices are affecting company margins. Uncertainty in the market is prompting many manufacturers to freeze expansion plans and put purchasing decisions on hold. Companies using large volumes of raw materials should consider hedging prices with long-term contracts.

China imposes 15% tariffs on US coal – commodity market under pressure In retaliation for US actions, China has announced 15% tariffs on American coal imports. The decision hits the US mining sector, which is already struggling with falling domestic demand and strong competition from Russia and Australia. Coal exporters will be forced to look for new markets, which could lead to oversupply and downward pressure on raw material prices. For European consumers, this could mean temporary price advantages, but in the longer term, volatility in the coal market could result in higher energy costs, especially in countries that still rely on burning it for power generation and heavy industry.

Europe invests €1.8 billion in strategic raw materials The European Union has announced a €1.8 billion programme to secure the supply chains of raw materials needed for batteries and electronics. In the face of growing rivalry with China and disruptions in the supply of rare earth elements, Europe is accelerating its efforts towards its own raw material independence. The programme includes both the development of local mining and the expansion of processing facilities in the EU. For manufacturers in the automotive, chemical and electronics sectors, this means greater stability of supply, although analysts warn that it could take several years to switch supply chains to European sources of raw materials.