In the initial week of June 2024, the Cellulose Ether market in the US maintained stability owing to a well-managed balance between supply and demand. The consistent prices of Propylene Oxide, a key feedstock, contributed to this stability by keeping the production costs of Cellulose Ether steady. Despite severe thunderstorms in late May 2024 affecting transportation, ample supplies of Cellulose Ether were sustained.

Overall, demand for Cellulose Ether from the coating industry in the US was low, reflecting a slowdown in construction spending across the nation in April 2024, with hopes of improvement in May 2024. According to the US Bureau of Labour Statistics, construction spending in April 2024 was reported at a seasonally adjusted annual rate of $2,099.0 billion, just 0.1% below the revised March estimate of $2,101.5 billion. In April, private construction spending reached a seasonally adjusted annual rate of $1,611.9 billion, slightly below the revised March figure of $1,613.3 billion. Nonresidential construction was reported at a seasonally adjusted annual rate of $721.5 billion, showing a decrease of 0.3% from the revised March estimate of $723.8 billion. Public construction spending totaled $487.1 billion, down by 0.2% from the revised March estimate of $488.2 billion. Educational construction was reported at an annual rate of $103.5 billion, which was slightly lower than the revised March estimate of $103.6 billion. Highway construction was at a seasonally adjusted annual rate of $149.6 billion, 0.5% below the revised March estimate of $150.4 billion. Conversely, residential construction reached a seasonally adjusted annual rate of $890.4 billion in April, a 0.1% increase from the revised March estimate of $889.5 billion, providing support to the Cellulose Ether market.

Despite the construction sector downturn, optimism for improvement persisted in May 2024, fueled by a decline in mortgage rates across the US, according to Freddie Mac. Starts for housing projects with five units or more surged by 31.4% to 322,000 units in April. Overall housing starts rose by 5.7% to 1.360 million units, sustaining Cellulose Ether consumption in the coating industry and preventing price depreciation. Official figures for May 2024 from the US Census Bureau were yet to be released at the time.

Overall prices of Cellulose Ether are anticipated to increase as prices of feedstock Propylene Oxide are expected to increase. Furthermore, the demand for Cellulose Ether from the downstream coating industry is also expected as the consumption of the product increases owing to the peak summer season during which the construction industry typically witnesses heightened activities, due to its nature. Moreover, secondary demand for Cellulose Ether from the downstream FMCG industries is also expected to recover as demand from the downstream FMCG industry is expected to gain momentum.