The North American Cellulose Ether market saw a price recovery in late January 2025, driven by rising production costs and efforts to restock. However, supply disruptions were significant, exacerbated by the severe winter storm Enzo, which brought freezing temperatures and impacted both logistical and transportation conditions.

The rising production costs were partly due to a 1% increase in the price of key feedstock, Propylene Oxide. This led to higher overall production costs for Cellulose Ether. On the other hand, improved trading activities played a role in price increases as circulation improved. According to the Association of American Railroads, chemical railcar loadings rose by 9% to 34,150 for the week ending January 18, 2025, which boosted the circulation of Cellulose Ether across the market. Demand remained strong, particularly with housing starts showing positive trends increasing by 15%, benefiting downstream coating applications that use Cellulose Ether.

The winter storm's impact on logistical and transportation systems, coupled with seasonal restocking efforts, drove an increase in Cellulose Ether prices across the U.S. market. However, the rate of price increases has been slower, with prices only witnessing an increment at the rate of approximately 0.5% on a weekly basis due to underlying unfavorable export conditions. While inland exports to across the North American market have improved, exports to the importing market remain unfavorable. Ports continued to witness closures, with the port of Houston being significantly impacted by this winter storm. Authorities at Port Freeport reported that they expect limited vessel activity, while authorities at Port Houston reported all of its public facilities will remain closed through Wednesday as winter storm Enzo sweeps through Texas, leading to mild accumulation of inventories, thus preventing significant rises in prices despite the challenging conditions being witnessed for Cellulose Ether.

Disruptions are expected to continue as the same winter storm is expected to cause further disruption in production activities for Cellulose Ether.