For the Quarter Ending September 2024
North America
In Q3 2024, the North American region faced significant challenges in Cellulose Ether pricing, resulting in a notable decline in market prices. Several factors contributed to this downturn, including weak demand from key sectors like construction and coatings amid ongoing economic uncertainties. Supply chain disruptions, including plant shutdowns and reduced production capacities, also affected pricing dynamics. Overall, market sentiment remained negative, with prices consistently trending downward.
In August 2024, production encountered additional hurdles due to limited availability of propylene oxide following an unplanned shutdown at Nova Chemicals in late July, which caused a nearly 1% increase in prices and raised production costs. Moreover, a labor dispute in Canada involving Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) led to the lockout of over 9,000 workers, further constraining the supply of cellulose feedstock and resulting in moderate Cellulose Ether production across the U.S.
In the United States, prices experienced the most significant fluctuations, dropping by 14% compared to the same quarter last year. A quarter-on-quarter decrease of 1% highlighted ongoing pricing pressures, while a 3% drop from the first half to the second half of the quarter indicated a deteriorating pricing environment as the quarter progressed. By the end of the quarter, the price of Cellulose Ether (CMC) reached USD 3,830/MT FOB Texas, reflecting the prevailing downward trend in pricing and the challenging market conditions affecting demand across the region.
APAC
In Q3 2024, the Cellulose Ether market in the APAC region experienced a period of declining prices, with notable impacts on the market dynamics. Several factors influenced this trend, including subdued demand from various industries, particularly the construction sector, which faced liquidity challenges. Additionally, seasonal factors like the monsoon season dampened construction activities, further reducing the need for Cellulose Ether. These conditions led to a decrease in prices, with China seeing the most significant fluctuations. China, being a key player in the market, experienced a -13% price change from the same quarter last year, indicative of the prolonged downward trend. Within Q3 2024, there was a -5% change from the previous quarter and a -2% decline between the first and second halves of the quarter. The latest recorded price for Cellulose Ether HEC(80000-100000) Grade FOB Qingdao in China stood at USD 4700/MT, reflecting the overall negative pricing environment characterized by stability. These trends underscore the challenging market conditions and the persistent struggle with low demand and pricing pressures in the Cellulose Ether sector.
Europe
In the Europe region during Q3 2024, the Cellulose Ether pricing landscape witnessed a period of declining prices, heavily influenced by multiple factors. The market for Cellulose Ether experienced a challenging quarter, with significant price decreases driven by weak demand conditions and reduced production costs. The downturn in the construction sector played a pivotal role, leading to low demand for the product. Additionally, the stability in prices can be attributed to moderate supplies and limited availability of feedstock Propylene Oxide. Across the region, the overall trend indicated a bearish sentiment, with prices decreasing by 2% compared to the same quarter last year. Germany saw the most significant price changes, with prices dropping by 4% between the first and second half of the quarter. The market in Germany reflected a negative sentiment, with prices ending the quarter at USD 3760/MT of Cellulose Ether (CMC) FOB Hamburg. The correlation in price changes highlighted a stable to bearish market situation, with demand remaining low and suppliers maintaining low inventories. The quarter concluded with a clear indication of decreasing prices, aligning with the overall negative pricing environment seen throughout the period.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Cellulose Ether market maintained stable pricing amidst a combination of factors that fostered a balanced environment. Stable production costs, with minimal fluctuations in feedstock Propylene Oxide prices, played a crucial role in steadying Cellulose Ether prices. Adequate supply levels also contributed significantly, ensuring prices remained steady without significant swings. Moderate demand from downstream sectors like coatings and construction, reflecting a slowdown in construction spending, further bolstered this stability. Within the USA, where the most significant price variations were observed, the overall trend remained steady despite seasonal influences. The construction sector's downturn tempered demand, though some optimism arose from declining mortgage rates and improved housing completions, which provided slight support to the market. Comparing Q2 2024 to the same period last year, prices for Cellulose Ether declined by 7%, indicating a notable decrease, while the quarterly change from the previous quarter showed a moderated depreciation trend at -3%. Notably, there was little price differentiation between the first and second halves of the quarter, emphasizing the consistent and stable market sentiment. Closing Q2 2024, Cellulose Ether (CMC) was priced at USD 4130/MT FOB Texas in the USA. This pricing stability underscores a balanced market environment—neither excessively positive nor negative but characterized by reliability. It reflects a harmonious interplay of stable supply, modest demand improvements, and controlled production costs, fostering a steady pricing landscape for Cellulose Ether across the region.
APAC
In Q2 2024, the Cellulose Ether market in the APAC region faced a strong bearish trend, driven by a combination of adverse economic and industrial conditions. Throughout the quarter, several key factors contributed to the decline in Cellulose Ether prices. The primary driver was sluggish demand from the construction sector, which dampened purchasing sentiment across downstream industries, especially in coatings. Additionally, logistical challenges such as port congestion and soaring global shipping costs worsened market oversupply, making destocking efforts difficult for suppliers. China, experiencing the most significant price fluctuations, reflected an ongoing downward trend. Seasonal factors, including reduced construction activity after holidays and the onset of the rainy season, further depressed the market. Price trends in Q2 2024 showed a continuous decline, with a notable 12% drop compared to the same quarter the previous year and a 2% decrease from the preceding quarter. The latter half of the quarter saw an additional 2% decline compared to the first half, highlighting persistent negative sentiment. By quarter-end, Cellulose Ether HEC (80000-100000) Grade FOB Qingdao was priced at USD 4900/MT, marking a significant decrease indicative of a challenging pricing environment. This downturn was driven by weak demand, seasonal fluctuations, and logistical bottlenecks. Consequently, Q2 2024 posed formidable challenges for the Cellulose Ether market in APAC, with China navigating the forefront of these adverse trends.
Europe
In the second quarter of 2024, the European Cellulose Ether market has shown a diverse yet increasingly positive pricing trend. Key factors shaping market dynamics include heightened secondary demand from the FMCG sector and favourable conditions in the beverage industry downstream. While internal supply chain disruptions and a slight decline in Propylene Oxide prices (around 1%) applied downward pressure, the overall balance of supply and demand maintained a bullish sentiment. Germany, notably, experienced significant price fluctuations within the region. The market here was influenced by seasonal demand shifts and increased manufacturing activities, which offset some earlier contractions. Despite challenges in the coating and construction sectors, prices in Germany managed to stabilize, showing no change quarter-on-quarter compared to the same period last year and a 2% decrease from the previous quarter of 2024. The first half of the quarter saw prices rise by 1% compared to the second half, reflecting a stable demand-supply landscape. By the end of the quarter, Cellulose Ether (CMC) was priced at USD 4000/MT FOB Hamburg, indicating a moderately stable market. Despite supply chain disruptions and reduced primary demand from coatings, Germany's retail sector improvement and increased FMCG demand helped maintain price stability. Overall, while facing various influences, the German market retained a stable sentiment, suggesting cautious optimism for the year ahead.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the North American Cellulose Ether market experienced a predominantly negative trend. Overall, product prices depreciated by around 1.5%, driven by increased production levels and limited exports to international markets.
Despite a rise of approximately 3.5% in feedstock prices for Propylene Oxide, the subdued construction sectors in Asian and European importing markets largely influenced the US Cellulose Ether market. Additionally, challenges at key waterways, such as droughts at the Panama Canal and the ongoing crisis in the Red Sea, hindered North American suppliers from exporting to European and Asian markets respectively.
Elevated freight costs further dampened export orders throughout the quarter. The downturn in China's construction sector, characterized by liquidity issues among real estate developers leading to halted construction activities and inventory procurement delays, contributed to the decline in the export US Cellulose Ether market. Slow restocking activities in Asia resulted in product stockpiling at US ports, preventing any positive movement in the North American Cellulose Ether market.
Asia
During the initial quarter of 2024, Cellulose Ether prices in the Asian market experienced an overall decrease of about 0.5 percent. Notably, there was no support from the feedstock Propylene Oxide (PO), which depreciated by around 8 percent during this period. The principal driver behind the downturn in the Asian Cellulose Ether market was the persistent decline in the construction sector, marked by reductions in residential starts and public construction orders. Additionally, many construction firms faced heightened input costs, leading to project deadline extensions, decreased initiation of new projects, and inventory postponements. Consequently, stockpiling occurred, prompting suppliers to reduce product prices. Following the Chinese Lunar New Year festivities, restocking conditions were sluggish, with restocking efforts limited to essential needs. Export conditions remained unfavorable due to ongoing crises at the Red Sea and droughts conditions at the Panama Canal. Moreover, adverse weather conditions at major ports such as Shanghai continued to disrupt operations, resulting in delayed departures to other importing nations.
Europe
During the first quarter of 2024, the European Cellulose Ether market experienced a blend of sentiments. Initially, there was a 2% increase in product prices, which was followed by a subsequent decline of approximately 2% later in the quarter. Initially, rising prices of the feedstock Propylene Oxide, up by around 6% during this period, drove the European Cellulose Ether market, leading to increased production costs. However, demand from downstream coating industries continued to weaken due to the sluggish construction sector, which began affecting the market midway through the quarter. The downturn in the construction sector, particularly evident in Germany, where permits and construction projects declined, drove Cellulose Ether prices. Real estate firms remained pessimistic throughout the year, with investment sentiments historically negative, and contractions observed across all segments of the construction sector—residential, commercial building, and civil engineering activities. However, during the middle of the first quarter, the European Cellulose Ether market saw some demand-side support from improving conditions in the British, Dutch, and Belgian markets. Despite this, it was insufficient to alter the prevailing market situation. Furthermore, challenges in the existing supply chain, including strikes by union workers leading to limited railway functionality and transportation and logistics constraints, also contributed to price increases.
For the Quarter Ending December 2023
North America
During the challenging fourth quarter of 2023, the North American Cellulose Ether market encountered significant obstacles driven by three primary factors.
Firstly, the demand for Cellulose Ether remained low in both domestic and international markets, attributed to a slowdown in the construction industry. This decline was influenced by high labor costs, escalating material prices, and the onset of the winter lull. Secondly, the market witnessed ample product availability, ensuring stable supplies throughout the quarter. Finally, market sentiment stayed bearish, resulting in a 4% decline in prices.
However, a positive shift occurred in the middle of the fourth quarter, driven by seasonal demand from the automotive sector and preparations for restocking activities associated with Christmas and the winter season. This induced optimism among traders, anticipating high demand from the downstream FMCG sector. In summary, the North American Cellulose Ether market faced challenges in Q4 2023, marked by low demand, stable supplies, and a bearish market sentiment. The USA experienced pricing fluctuations throughout the quarter, with no significant overall change. The latest price for Cellulose Ether (CMC) FOB Texas in the USA for the current quarter stands at USD 4202/MT.
APAC
In Q4 2023, Cellulose Ether pricing in the APAC region exhibited stability amid moderate demand and consistent supplies, with minor weekly price adjustments. The market maintained equilibrium, and supplies remained steady throughout this period. The key factors influencing the market included a narrowed demand-supply gap, a post-festive relaxation in market dynamics, and subdued overseas sales. Notably, China experienced significant price fluctuations, witnessing a 0.8% increase in November and a subsequent 2% decline in January. The trend for Cellulose Ether in China was negative, with a projected 2.3% decline in December 2023. No substantial seasonality was evident, and the correlation price percentage was deemed moderate. Both the percentage change from Q4 2022 and the change from the previous quarter remained constant at 0%. The quarter-ending price for Cellulose Ether HEC (80000-100000) Grade FOB Qingdao in China stood at USD 5180/MT. Overall, the market maintained stability with minor price adjustments, and the negative trend in China was attributed to a narrow demand-supply gap and sluggish overseas sales.
Europe
In the European market, Cellulose Ether prices initially experienced a bearish trend, marked by a nearly 3% depreciation. However, a recovery of around 6% was noted during October and November. The primary demand from the downstream construction sector was notably low, which was attributed to declining building permits and downturns across all three segments of the construction industry. Conversely, demand from the secondary FMCG sector exhibited strength, with traders anticipating heightened demand due to improved purchasing activities. The increasing costs of one of the raw material Propylene Oxide also played a role in enhancing the market situation by raising production costs. Despite these improvements, the primary demand from the construction sector persisted in retrenchment for the thirteenth consecutive month. Housebuilding remained the weakest performing segment of the construction industry, with subcontractor availability easing for the eighth consecutive month. Overall, demand conditions remained highly unfavorable, marked by an all-time low in investment confidence and continued job shedding throughout the fourth quarter of 2023.
For the Quarter Ending September 2023
North America
During the third quarter ending in September 2023, Cellulose Ether exhibited mixed sentiments in the North American region. Prices increased significantly in the initial two months of the quarter however dipped in September. The price surge during July and August was mainly attributed with strong performance of the downstream industries. During July, a healthy demand in the downstream FMCG industries where Cellulose Ether is mainly used as binder in medicines was observed. This healthy demand is generally attributed to the inflationary behaviour of stocking comestibles and medicines amongst the local populace as due to fears of the Federal Reserve hiking interest rates. Further, in August marginal improvement in coatings and construction industry drove up the prices of many construction commodities including Cellulose Ether within the country. However, in September 2023, the prices dipped by 4%, amidst relatively low enquiries for the product from the Asian and European market and ongoing challenges in the domestic coatings and construction industry. Further, the supply for the product was high, and no barriers were found in the supply chain in the USA during September 2023 prompting towards narrowed gap between demand and supply.
Asia
Asian Cellulose Ether market experienced a significant surge in price during the initial tow months of the third quarter ending in September 2023. However, the prices plunged in September 2023 by a margin of 3.3%. This price surge was primarily driven by a tight supply situation within the country, rising feedstock Caustic Soda prices, and strong demand from the international market, particularly from India, thanks to the robust performance of the downstream paints and coatings sector. During August, a Typhoon hit the country impacting production activities in many parts of the country. Manufacturing units were operating at a slower rate during this month leading to a scarcity of material within the Chinese market. However, demand from the domestic market remained dull during this period. This is largely due to halted construction activities in China amidst heavy floods in the northern and southern part of the region. While demand from international market was firm during this period as festive season demand was hitting the market. Conversely in September 2023 the prices plunged due to slow economic activities amidst ample product availability in the country. Market participants were offering discounts on spot purchases in order to induce offtakes.
Europe
The European Cellulose Ether market experienced an increase in prices during the initial two months of the third quarter. This price upturn was primarily driven by several factors, including a constrained supply situation within the region, rising prices of feedstock Caustic, and a strong demand from the international market, particularly due to the robust performance of the downstream paints and coatings sector. The elevated feedstock prices and high energy prices in the region prompted towards high production rate within the region consequently leading to an increase in Cellulose Ether prices. Additionally, the holiday season in August 2023 resulted in labour shortages and decreased manufacturing activities within the region, further influencing the market dynamics. Demand from the downstream paints and coatings sector exhibited a moderate pace during this period. Furthermore, the growing inflationary pressures and increased interest rates also contributed to the prevailing price trend. Conversely, prices experienced a decline in September due to reduced economic activities and the availability of an ample supply of the product within the country. Market participants began offering discounts on spot purchases to stimulate sales.
For the Quarter Ending June 2023
North America
As per the assessment, Cellulose Ether prices fluctuated in the US market during Q2 2023. As per the data, Cellulose Ether prices declined marginally during the first month of the quarter, i.e., April, and kept on tracing an uptrend for the rest of the quarter. It was observed that the US market, which has been struggling with high inflation and lower-than-expected recovery in economic activities, kept affecting the pricing dynamics of several commodities, including Cellulose Ether. Further, during the mid of the quarter, consumption of Cellulose Ether in the construction sector gradually increased, as indicated by the Production price index (FRED) of the Industry of Cement and Concrete Product Manufacturing in the US, which rose from 233.3 (May) to 234.1 (June) experienced stronger trading activity than the previous month. The increase in downstream demand elevated the product price in the US market. As per the data retrieved from the market, Cellulose Ether prices hovered around USD 6339/Mt for HEC grade on a FOB basis during May 2023.
Asia
Cellulose Ether prices in the Asian market kept falling throughout the second quarter of 2023 due to low demand from the domestic downstream sectors amidst ample product availability in the region. As per the data, Cellulose Ether prices in China and India continued an overall downtrend for all three months, marking an overall decline of around 2% for both countries. In China, the Industrial growth rate declined from 5.6% (April 2023) to 3.6% (May 2023). However, the market growth rate for June appeared to be improving, according to NBS. Supplies of the product remained ample enough to support an overall downward price trend in the country. PMI fell marginally from 95.3 (April 2023) to 94.1 (May 2023). However, industrial activities seem to be improving during June 2023. On the other side, in India, after the initial boost on the arrival of the summer season in the country, demand fundamentals plunged all of a sudden due to the hit of the monsoon season.
Europe
As per the recent assessment, Cellulose Ether prices fell during Q2 2023 on the back of low demand from the domestic market amidst ample stocks in the region. The European key players have been battling with high inflationary pressure and low consumer demand. Therefore, on the back of high inflation and prolonged economic dullness, demand for multiple commodities, including Cellulose Ether, reduced during this timeframe affecting the pricing dynamics of the product. Furthermore, internal issues of the nation have also been bothering market sentiments, where the violence that erupted in France also affected regional trade activities. Furthermore, as per key economists of the world, Germany eventually went into recession during the mid of the quarter, and the UK has been on the edge. Consequently, overall market sentiments were low throughout the quarter, which reduced the demand for Cellulose Ether from the downstream industries, including construction and paints & coating. Additionally, regional freight charges also remained high throughout this timeframe, but it didn’t affect the prices of Cellulose Ether in the meantime.
For the Quarter Ending March 2023
North America
Cellulose ether prices in the USA market have fallen as a result of the downward trend in upstream cotton prices over the previous month. Poor buying mood in the downstream US construction sector prevented Cellulose Ether prices from increasing. The better performance of the construction industry's downstream segment is the main cause of the price increase in USA cellulose ether. The price trend of cellulose ether in the USA has remained consistent due to the lowering prices of cellulose ether in exporting nations like Europe and China. The prices were hovering at USD 6417/ton HEC FOB Texas in February.
Asia
The price of Cellulose Ether was depleted in the Asian market during Q1, 2023, with prices ranging at USD 3080/ton HEC Grade FOB Qingdao. Despite a rise in feedstock prices and a rise in inquiries from the pharmaceutical and downstream construction industries, the market remained pessimistic. Despite an increase in demand, there was a surplus of material available on the domestic market, which reduced prices. As China looks ahead to its path to economic recovery, operating rates have remained strong in terms of domestic production. Ample stockpiles are reportedly available at the ports, according to traders. Feedstock prices for cotton and pulp have fallen precipitously, lowering manufacturing costs overall and significantly affecting cellulose ether end pricing.
Europe
The market value of Cellulose Ether depreciated with a rise in the inventory level and a fall in the downstream demand for the product. The demand for cellulose ether from the construction industry was lower than expected in the European market, which contributed to the downward trend in cellulose ether prices. The same demand situation that Cellulose Ether is facing in Europe is also affecting upstream cotton prices, which lowers the product's operational cost. This led to a fall in the procurement of Cellulose Ether from sectors like thickener and binder, as quoted by sources.
For the Quarter Ending December 2022
North America
In the final quarter of 2022, Cellulose Ether prices fell during the second half, whereas the prices rose in the first half in the American market. The price of Cellulose Ether in the domestic market increased due to the steady demand from the pharmaceuticals sector and food and beverage sector during the first half of 2022. The US pricing trend was aided by declining demand for Cellulose Ether from importers like Japan and India and easing natural feedstock costs during the latter half of Q4 2022. Due to easing feedstock natural gas costs, the price of upstream methyl chloride declined during the end of Q4 in the US.
APAC
Throughout the third quarter of 2022, Cellulose Ether prices decreased steadily in the Chinese market. Lockdowns (Covid-19 related) in the domestic market had a notorious impact on China’s economy; the decreased demand from the downstream construction sector, the food and beverage industry, and the pharmaceutical business during the final quarter of 2022 were the main cause of the downward price trend of cellulose ether in the country. At the conclusion of the final quarter of 2022, cellulose ether prices in the Chinese market were estimated to be around USD 3065/MT. Since several Asian countries import from China, so the price trend of major importers like South Korea and India follows a similar trend.
Europe
Despite steady growth in demand for stabilizers and thickeners from the downstream food industry, the price of Cellulose Ether in the European markets decreased throughout Q4 of 2022. Due to poor downstream building activity brought on by expensive raw materials, Cellulose Ether prices fell throughout the final quarter of 2022, which decreased demand for the commodity in Europe. Because of the weak demand from the downstream construction sector brought on by the declining construction activity and significantly increasing inflation rates in several European nations, the price of Cellulose Ether did not witness any rise during the final quarter of 2022 in Europe.
For the Quarter Ending September 2022
North America
In the American market, Cellulose Ether prices constantly decreased throughout the third quarter of 2022. The easing demand from the downstream Construction sector, pharmaceuticals, and food and beverages sector drove up the cost of Cellulose Ether in the domestic market. Declining demand for Cellulose Ether from importing countries like Japan and India assisted the rising price trend in the US. The price of upstream methyl chloride was growing on the back of increasing feedstock natural gas costs. The feedstock natural gas price in the US rose during Q3 2022 owing to the increased export amounts to Europe. Despite this factor, the price of Cellulose Ether eased in the American market in the third quarter of 2022. During the end of Q3, the price of Cellulose Ether in the US was recorded at around USD 4310/MT Cellulose Ether (CMC) FOB Texas.
APAC
In the Indian market, the Cellulose Ether market remained stable with minimal fluctuations throughout the third quarter of 2022. The decline in consumption of Cellulose Ether in downstream industries like pharmaceuticals, construction, and the food & beverages industry abetted the stable price trend of Cellulose Ether in India. The inventory level was sufficient enough to reciprocate the domestic demand and maintain a steady price trend during Q3 2022. Cellulose Ether prices dropped consistently throughout the third quarter of 2022 in the Chinese market. The declining price trend of Cellulose Ether was primarily due to the lockdowns in the domestic market, which lowered the demand from the downstream construction sector, food &beverages industry, and pharmaceutical industry during Q3 2022 in China. The price of Cellulose Ether in the Chinese market at the end of Q3 was recorded at around USD 3310/MT.
Europe
The price of Cellulose Ether in the European market increased at the start of the second quarter owing to the steady rise from the downstream food industry for stabilizers and thickeners. The prices of Cellulose Ether dropped throughout the third quarter due to poor downstream construction activities because of expensive raw materials and high energy prices, bringing down the demand for Cellulose Ether in Europe. The cost of Cellulose Ether did not increase throughout the third quarter as the demand from the downstream construction sector was poor due to diminishing construction activity, which was assisted by strongly rising inflation rates in several European countries.
For the Quarter Ending June 2022
North America
In the American market, Cellulose Ether prices constantly increased throughout the second quarter of 2022. The rising demand from the downstream Construction sector, pharmaceuticals, and food and beverages sector drove up the cost of Cellulose Ether in the domestic market. Rising demand for Cellulose Ether from the importing countries like Japan and India assisted the rising price trend in the US. The price of upstream methyl chloride was growing on the back of increasing feedstock natural gas costs. The feedstock natural gas price in the US rose during Q2 2022 owing to the increased export amounts to Europe, which drove the price of Cellulose Ether upwards in the American market in the second quarter of 2022.
APAC
In the Indian market, the Cellulose Ether market remained stable with minimal fluctuations throughout the second quarter of 2022. The steady consumption of Cellulose Ether in downstream industries like pharmaceuticals, construction, and the food & beverages industry abetted the stable price trend of Cellulose Ether in India. The inventory level was sufficient enough to reciprocate the domestic demand and maintain a steady price trend during Q2 2022. Cellulose Ether prices dropped consistently throughout the second quarter of 2022 in the Chinese market. The declining price trend of Cellulose Ether was primarily due to the lockdowns in the domestic market, which lowered the demand from the downstream construction sector, food &beverages industry, and pharmaceutical industry during Q2 2022 in China.
Europe
The price of Cellulose Ether in the European market increased at the start of the second quarter owing to the steady rise from the downstream food industry for stabilizers and thickeners. High energy prices in the continent contributed to the price hike of Cellulose Ether in the months of April and June. The prices of Cellulose Ether dropped during MAY due to poor downstream construction activities because of expensive raw materials and high energy prices, bringing down the demand for Cellulose Ether in Europe. The cost of Cellulose Ether rose nearing the end of Q2 2022 as the demand from the downstream construction sector increased with improving construction activity in European countries.
For the quarter ending March 2022
North America
In North America, the market for Cellulose Ether portrayed positive sentiments during the 1st quarter of 2022, on the back of firm demand and constraint supply. Increased downstream demand from the growing construction and pharmaceutical industries propelled the Cellulose Ether price value in the domestic market. Furthermore, tightened supply due to low inventories contributed to the price hike of Cellulose ether. In addition, skyrocketed crude oil prices amidst Russia-Ukraine war tensions, enhanced freight charges, labour shortage, and port congestions combinedly acted as the impetus to the Cellulose Ether market. Hence, the price value of Cellulose Ether HPMC Grade soared from USD 6015/Ton to USD 6250/Ton from January to March 2022 at FOB Houston.
Asia Pacific
The Asia-Pacific region witnessed an inclining pricing trend of Cellulose Ether in Q1 of 2022, backed by increased consumption in downstream industries and enhanced crude oil prices. The demand for Cellulose Ether remained firm in the food and beverage industries and construction sectors. Additionally, fuelled freight charges, port congestions, and cargoes shortage owing to the conflict between Russia and Ukraine further pushed the prices of Cellulose Ether in the upward direction. Moreover, inadequate inventories level, not catering to the overall demand also supported the price surge of Cellulose Ether. Conclusively, In India, the price value of Cellulose Ether HPMC grade upsurged from USD 5757.89/Ton (INR 436705/Ton) to USD 6015.59/Ton (INR 456250/Ton) from January to March 2022 at Spot Ex-Mumbai.
Europe
In Europe, the prices of Cellulose Ether kept on surging during the 1st quarter of the year 2022, owing to robust demand. Several industries, such as food and beverages, pharmaceuticals, and construction, strongly demand Cellulose ether in the domestic market. Furthermore, increased freight charges and enhanced crude oil prices propelled the Cellulose Ether prices. Besides, the halted supply chain was not corresponding to the downstream demand. Additionally, the conflict between Russia and Ukraine has drastically impacted the economy in several European countries, which in turn, raised the prices of various commodities, including the prices of Cellulose Ether.
For the Quarter Ending December 2021
North America
In North America, the prices of Cellulose Ether witnessed a significant rise in the US domestic market on the back of the increased end-user demand during Q4 2021. A sharp increase in commodity and energy prices, labor shortages, freight costs, and the unprecedented outbreak of the coronavirus has supported the market trend of Cellulose Ether in the region. The tightened supply and low dealer inventories are the major factors behind the price rise in the US market. The demand from the downstream construction, pharmaceuticals, and other end-use industries remained strong throughout the quarter.
Asia
During the 4th quarter of 2021, the prices of Cellulose Ether continued to showcase an upward trend across the Asia Pacific region. In the Indian domestic market, Ex-Depot Mumbai prices for HPMC grades slightly increased from USD 22808.4/mt to USD 22880.21/mt from October to December. As for the CMC and HEC grades, the Cellulose Ether prices were assessed at USD 13137.78/mt and USD 20475/mt, respectively, in December. The demand outlook significantly improved in quarter 4, followed by the consistent offtakes from the downstream sectors. Due to high freight charges, traders were compelled to revise their offers in order to sustain their margin, as imported cargoes were getting expensive week by week.
Europe
The European market trend of Cellulose Ether kept on following the upward trajectory in the 4th quarter of 2021. The upsurge in freight costs had a profound impact on several commodities, including Cellulose Ether, across Europe, which also undermined the socio-economic recovery in the country. The prolonged Supply chain constraints, container shortages, labor shortages, and port congestions continued to hamper the market sentiments in quarter 4. The demand from the downstream industries remained strong in this quarter.
For the Quarter Ending September 2021
North America
The prices of Cellulose Ether rose effectively across the North American region in Q3 2021. Rayonier Advanced Materials Inc., Florida announced that it will increase its prices for all its Cellulose Specialties products by 15 to 30 percent as contracts allow with effective from October. The purpose of this change was to help the company offset the accelerating impacts of cost inflation throughout its global supply chain. In terms of demand, strong offtakes from the downstream industries including plasters, cement extrudates, tile adhesives, and emulsion paint were observed during Q3 2021.
Asia
The prices of Cellulose Ether witnessed a significant rise in the Asia Pacific region during the 3rd quarter of 2021. In the Indian market, prices trended upwards, following the resilient demand for HEC and CMC grades from the personal care products. Ex-Depot Mumbai price for CMC grade Cellulose Ether was assessed at USD 13414 per MT while that of HEC grade was settled at USD 20826 per MT in September, up by a significant percent than its prices last month. Substantial improvement in demand from the construction sector further lent support to the consumption of HPMC grade Cellulose Ether whose price rose to USD 23513 per MT in September.
Europe
The overall pricing outlook of Cellulose Ethers demonstrated an upward trajectory in the third quarter of 2021 on the back of the improved demand from the downstream industries. A leading producer announced positive revision for several grades of Cellulose Ether to manage with the rising cost pressure. The price increase in key raw materials and surges in global freight costs further supported high pricing scenario during the quarter.
For the Quarter Ending June 2021
North America
Better availability of the key feedstocks such as Ethylene Oxide, Methyl Chloride and Chloroacetic Acid kept the Cellulose Ether production rates surged during the second quarter of 2021. However, users still reported supply constraints under the diversion of large volumes of feedstock for other derivatives which put the significant pressure in the regional supply outlook. With the pickup in the regional economy, offtakes of Cellulose Ether from the downstream plasters, cement extrudates, tile adhesives and emulsion paint industries were strong led by the rebound in the building and construction sector in the North American region. Cellulose Ether offtakes were outpacing the regional production capacity during the quarter. As a ripple effect, the pricing trend remained firm and reported strong gains on QoQ basis.
Asia Pacific
Cellulose Ether demand outlook in the Asia Pacific region, observed a sudden surge in China as the government eased COVID norms and offtakes from the building and construction industries bolstered, whereas in India the trend remained pressured under subdued market activities in the first half of the quarter. Ex-Depot Mumbai offers were settled around USD 22,227 per tonne in June for the HPMC grade. Supply in the Asia Pacific region was balanced during the second quarter of 2021, as the addition of several new capacities in China provided the support to the regional availability of the Cellulose Ether. Japanese manufacturers reported decline in demand during Q2 from the personal care applications.
Europe
During the second quarter of 2021, the European market of Cellulose Ether observed ease in the supply outlook, owing to improved production rates at several manufacturing sites in Germany, and restoration of trade with the US. Strong demand from the automotive sector favoured the regional Methylcellulose manufacturers which positively corrected the quarterly offers. Demand was bolstered from the construction sector. Extended logistic delays and low feedstock availability were the key manufacturer’s concerns in Q2.
For the Quarter Ending March 2021
North America
Cellulose Ether supplies in North America were curtailed during the first quarter being strongly attributed to the shortage of feedstock due to supply chains disruptions. Raw material supplies remained disrupted as the major industrial sites were severely impacted by the winter storm Uri in mid-February, which further forced the domestic plants to reduce or shutdown the production of Cellulose Ether. The widened supply demand gap amid the deficit in supplies led to the multifold hike on the prices of Cellulose Ether in Q1 2021. The price increases were further driven inflationary pressures from packaging, logistics and maintenance expenses. Demand outlook remained strong from the food, pharmaceutical and construction segments.
Asia-Pacific (APAC)
During the first quarter of 2021, Cellulose Ether supplies were hampered in the APAC region, owing to limited availability of the feedstock in the Chinese market with restrictions imposed on cotton linters during the inspection on environmental assessment. Furthermore, plant outages during the Chinese Lunar New Year holidays further supported the constraints on the supplies of Cellulose Ether in the APAC market. Demand surged from the downstream sectors as the consumption was improved from the food, pharmaceutical, paper and adhesives industries. As a repercussion of global supply tightness, and firm feedstock, Cellulose Ether snapped uptrend in the entire region.
Europe
European Cellulose Ether market was severely impacted by curtailed supplies, amid the shortage of the key feedstock followed by limited industrial and commercial activities due to the COVID restrictions during the Q1 2021. Shipments from USA decline due to bad weather conditions. Surged prices of feedstock significantly affected the prices of cellulose ether in the European market.
For the Quarter Ending December 2020
North America
High volatility on the raw material front was observed due to limited supply and production constraints in the several US states. Prolonged delays in the product delivery amid tightness in carrier availability were reported by some producers. The average price increased by 2.5 per cent in November as compared to October supported by increasing demand for bio-based products and polymers in the region. This uptrend in demand is further anticipated to influence prices to remain high in the region at least till Q1 2021.
Asia
Cellulose Ethers market in Asia has witnessed slight growth in the demand curve upheld by revival in the end-user industries during the first half of the 4th quarter. In China, overall production eased by November 2020 as producers ramped up operations, to makeup for the incurred loss during the previous quarter. The growth in demand for carboxymethylcellulose (CMC) which holds over 45% share in the total Cellulose Ethers market in Asia supported by rising consumption by various sectors, especially the pharmaceutical industry kept the sentiments uplifted. In India, soaring demand due to the festive season in mid quarter drove prices higher which were assessed at around USD 17400 per MT.
Europe
The prices of Cellulose Ethers took an upturn during the fourth quarter in Europe, driven by surge in the demand from downstream applications with a considerable resumption in industrial activities. Reduced production of raw materials triggered by unfavorable weather conditions in the European countries have caused spike in the Cellulose Ether rates compared to the previous quarter. The western Europe Cellulose Ether market has been highly relying on its inventories during the 4th quarter due escalating raw materials in the European region. Players reported that increasing production costs and suppressed demand has been affecting the overall product profitability.
