In Q3 2025, the global PPG market experienced a noticeable price decline of around 2–3% compared to Q2 2025. This drop did not happen suddenly but developed gradually as demand from major downstream industries slowed. Many buyers reduced their purchasing volumes, focusing on using existing inventory rather than placing fresh orders. As a result, suppliers faced rising stock levels and limited pricing power.
One of the key reasons behind the softer PPG Price Trend was reduced demand from polyurethane foam producers and coatings manufacturers. These sectors are closely linked to construction and automotive activity, both of which showed signs of slowdown during the quarter. While feedstock and energy prices remained mostly stable, the imbalance between supply and demand became the main driver shaping the market.
Oversupply and Inventory Pressure
Oversupply played a significant role in pushing PPG prices lower, especially in Asia. Major producers continued operating at stable production rates, but consumption did not keep pace. This led to excess material in the market, forcing sellers to adjust prices to stay competitive.
Inventory destocking was another important factor. Many buyers, uncertain about near-term demand, chose to reduce their inventories rather than build new stock. This behavior further weakened the PPG Price Trend, as suppliers faced slower order flow even when production costs did not increase.
Freight costs added another layer of complexity. In several regions, rising transportation expenses reduced margins for traders and exporters. However, instead of passing these costs fully onto buyers, suppliers often absorbed part of the increase, contributing to softer pricing.
South Korea: Weak Demand Meets Oversupply
In South Korea, PPG export prices from Busan declined by 1.42% in Q3 2025 compared to the previous quarter. The PPG Price Trend in the country was largely influenced by reduced demand from the automotive and coatings sectors. Slower vehicle production and delayed industrial projects limited PPG consumption.
Although production levels remained stable, oversupply conditions dominated the market. Rising freight costs also impacted exporters, making it harder to maintain earlier price levels. By September 2025, prices continued to move downward, signaling ongoing market weakness. Looking ahead to Q4 2025, price movement is expected to remain volatile, depending on how quickly downstream industries recover.
Thailand: Continued Softness in Industrial Activity
Thailand also experienced a decline in PPG prices, with export prices from Laem Chabang falling by 1.00% in Q3 2025. The PPG Price Trend in Thailand followed a similar pattern to other Asian markets, driven by reduced demand from automotive and chemical industries.
Despite stable production, oversupply remained a challenge. Freight costs increased slightly, adding pressure to the market environment. By September, prices were still trending downward, reflecting ongoing demand softness. Unless industrial activity picks up, prices are expected to stay under pressure in the near term.
India: Demand Pressure and Logistics Challenges
In India, imported PPG prices declined by 0.39% during Q3 2025. The PPG Price Trend was influenced by weaker demand from pharmaceuticals and coatings. Global supply chain disruptions also played a role, making buyers cautious about procurement.
Even though feedstock prices remained stable, rising freight charges and oversupply in the global market contributed to lower import prices. By September, prices remained subdued, reflecting slow consumption and logistical challenges. For Q4 2025, the outlook suggests continued pressure unless demand improves significantly.
Australia: Stability with Mild Decline
Australia saw only a minor price movement, with PPG prices decreasing by 0.13% in Q3 2025. The PPG Price Trend here was relatively stable compared to other regions. Demand from coatings and chemical sectors remained steady, helping limit sharper declines.
However, market softness and higher freight costs still affected pricing. Slower production in key downstream industries kept price movement muted. By September, prices showed a slight downward bias, and Q4 expectations point toward continued stability unless there is a major change in demand.
Germany: A Different Direction
Germany stood out as one of the few markets where prices increased. In Q3 2025, PPG prices rose by 0.97% compared to Q2. The PPG Price Trend in Germany was supported by consistent demand from pharmaceutical and coatings industries.
Rising feedstock costs, especially propylene, along with higher transportation expenses, pushed prices upward. Limited supply availability also contributed to the upward trend. By September, prices continued to rise, and the outlook for Q4 suggests moderate increases driven by steady demand and cost pressures.
Saudi Arabia: Weak Industrial Demand
In Saudi Arabia, PPG prices declined by 1.85% in Q3 2025. The PPG Price Trend reflected reduced demand from automotive and coatings industries, both of which faced production slowdowns.
Rising freight costs and supply chain disruptions added to the pressure. Prices remained low through September, and the market outlook for Q4 remains cautious. Without a clear recovery in downstream demand, prices are likely to stay under pressure.
Turkey: Ongoing Market Softness
Turkey experienced one of the sharper declines, with prices dipping by 2.04% in Q3 2025. The PPG Price Trend was shaped by weak demand from automotive and coatings sectors. Slightly higher freight costs added to the downward pressure.
Prices continued to fall in September, reflecting persistent market softness. Unless supply chain conditions improve and demand strengthens, Q4 may see continued price challenges.
United States: Noticeable Price Decline
The USA recorded a 3.00% drop in PPG prices during Q3 2025, one of the steepest declines among major markets. The PPG Price Trend was affected by slower demand from automotive and chemical industries.
Rising freight costs and supply chain disruptions further weakened prices. By September, prices remained low, and the outlook for Q4 remains uncertain. A recovery will largely depend on improvements in industrial production and consumer demand.
Overall Market Outlook
Overall, the PPG Price Trend in Q3 2025 highlighted a market struggling with demand uncertainty and excess supply. While most regions experienced price declines, the extent varied based on local demand conditions, freight costs, and supply availability.
Looking ahead to Q4 2025, expectations are mixed. Some recovery may occur if automotive, construction, and industrial activity improves. However, continued oversupply and cautious buying behavior could limit any strong price rebound. The PPG market remains sensitive to changes in downstream demand, making price movement closely tied to broader economic conditions.
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