BAC Prices to Increase in April Due to Supply Chain Issues, Trade Uncertainty

The U.S. market for Benzalkonium chloride (BAC), a key antiseptic and disinfectant, is expected to see a moderate price increase in April 2025, due to a combination of factors including global production trends, trade policies, and supply chain pressures.

China, a significant exporter of BAC to the U.S., is expected to boost its BAC production in April before the summer maintenance period, in line with the increased demand from the healthcare and pharma industries looking to stock up before the maintenance. However, BAC prices remained constant in March according to industry experts, but the market is now experiencing short-term volatility and increasing uncertainty. Shipping and logistics firms are expected to implement General Rate Increases (GRIs) between mid-to-late March and early April to maximize vessel usage, which may increase BAC prices.

Geopolitical tensions are adding further pressure. Trade policy uncertainty is on the rise due to possible tariff announcements scheduled for April 2. The White House is considering imposing global duties on pharmaceutical imports, including a proposed 25% tariff on goods from several nations, including China, which could severely disrupt supply chains. These tariff fears have already led to buying, which has put pressure on supply chains and sets the stage for BAC price challenges.

The BAC market is expected to remain volatile in the future according to analysts. Higher prices may lead to higher inflation which could increase costs for consumers in the pharmaceuticals, healthcare, personal care, and industrial cleaning sectors where BAC is a key ingredient.