For the Quarter Ending June 2025
North America
The North American paper bleaching chemicals sector showed a mixed performance in Q2 2025, with supply-side dynamics and tariff-related shifts driving volatility across key commodities. Hydrogen Peroxide rose by 2.5% QoQ to USD 1091/MT FOB Illinois, supported by localized supply disruptions and elevated energy costs. Demand from pulp & paper remained steady, though upside potential was capped by macroeconomic caution.
The Sodium Bisulfite market saw firmer fundamentals, rising 8.03% on restocking, tariff-driven bulk imports, and higher logistics costs, before softening slightly in July due to market saturation.
Outside the bleaching chain, bearish sentiment in Methanol (-5.3%) and Propylene Oxide (-10.8%) reflected weak construction and coatings demand, while Sodium Tripolyphosphate plunged 21.5% amid declining detergent-sector reliance on phosphate additives.
Overall, the paper bleaching chemicals segment retained mild upward bias, largely driven by peroxide stability and sodium bisulfite restocking, while chlorate weakness underscored demand fragility tied to global pulp trade policy.
Europe
The European paper bleaching chemicals sector displayed mixed dynamics through Q2 and early Q3 2025, reflecting varied trends across key commodities. Hydrogen Peroxide stood out as the strongest performer, rising +13.83% in July, supported by firm demand from pulp, paper, and textiles, alongside higher energy-linked production costs. Despite port congestion and elevated gas prices, stable supply management kept markets balanced.
In contrast, Sodium Chlorate weakened, falling -1.83%, pressured by early summer slowdowns in pulp and paper production, elevated inventories, and muted downstream demand. Prices are expected to remain soft as mills continue operating at reduced rates and buyers avoid long-term procurement.
Sodium Bisulfite initially benefited from logistical disruptions and strong pulp and paper demand in June but showed signs of easing into July, reflecting limited downstream pull and tariff-driven trade uncertainties.
Broader chemical markets tied to pulp and paper, such as Methanol (-3.67%), Propylene Oxide (-5.85%), and Sodium Tripolyphosphate (-7.59%), declined due to oversupply, weak construction and detergent demand, and subdued feedstock costs, indirectly softening support for paper chemicals.
Overall, the bleaching segment remains resilient, with Hydrogen Peroxide providing stability, while Sodium Chlorate continues to weigh on sentiment in the European paper chemicals market.
APAC
The APAC paper bleaching chemicals sector in Q2 2025 reflected mixed sentiment, shaped by oversupply pressures, cautious downstream demand, and shifting procurement trends. Hydrogen Peroxide prices in China fell -1.6% QoQ to USD 582/MT, driven by persistent oversupply, although July prices stabilized amid seasonal recovery in textiles and paper. Sodium Chlorate weakened, dropping -6.65%, as high domestic operating rates outpaced sluggish paper sector demand. Exports to Russia and Southeast Asia provided some relief, but the forecast remains bearish on weak inventory drawdowns.
Sodium Tripolyphosphate (STPP) saw the steepest fall (-17.64%) on growing inventories, weaker exports, and phosphate-free detergent reformulations, despite modest detergent sector growth in China. Methanol prices slipped -10.19%, pressured by steady Middle Eastern inflows and weak downstream offtake in formaldehyde, impacting bleaching-related intermediates. Propylene Oxide declined -14.43% amid oversupply, high inventories, and subdued polyurethane demand linked to real estate and construction downturns, with additional capacity weighing on sentiment.
Conversely, Sodium Bisulfite was relatively resilient, dipping just -1.28%, supported by strong pulp & paper and water treatment demand. Export momentum, particularly to Western markets, kept July sentiment firm, aided by elevated freight rates and proactive procurement. Overall, APAC bleaching chemicals remain under pressure, but selective demand resilience offers cautious optimism.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American chemical market exhibited mixed trends across key products. Hydrogen peroxide prices rose by 11.10%, driven by elevated energy costs, supply chain disruptions, and steady demand from the pulp & paper and textile sectors. In contrast, Sodium Chlorate experienced a 5.27% decline due to early-quarter oversupply and weak demand, although prices stabilized later as pulp mill procurement rebounded. Sodium Tripolyphosphate (STPP) declined by 5.03%, affected by macroeconomic challenges, increased low-cost imports, and weather-related logistical issues, despite resilient demand from water treatment sectors. Sodium Bisulfite saw the sharpest decline at 18.49%, initially pressured by weak demand and import competition, although February and March saw partial recovery due to strengthened demand from pharmaceuticals and food sectors. Methanol prices rose by 15.48% early in the quarter due to high natural gas prices but eventually declined as weak downstream demand and oversupply led to an overall bearish sentiment. Propylene Oxide fell by 3.39%, impacted by sluggish construction-related demand, declining feedstock prices, and excess supply, with prices ending at USD 1,443/MT FOB Louisiana.
Europe
In Q1 2025, the European hydrogen peroxide market saw a strong recovery, with prices rising by 12.14% compared to Q4 2024, driven by increasing energy costs, production constraints, and steady demand from the pulp & paper and textile sectors. Conversely, the Sodium Chlorate and Sodium Tripolyphosphate (STPP) markets faced downward pressure, recording price declines of 6.63% and 6.65% respectively, due to weak industrial activity, oversupply, and subdued export demand. Methanol prices in the Netherlands fell by 4.93%, reflecting bearish market sentiment amid weak downstream demand, improved production cost efficiency, and cautious end-user procurement.
In contrast, the European Propylene Oxide (PO) market edged up 3.45%, supported by initial restocking and feedstock constraints, though later pressured by softened demand, rising import competition, and logistical challenges. Overall, while energy-driven cost pressures and select sectoral demand buoyed some markets, others continued to face headwinds from oversupply, economic uncertainty, and subdued industrial activity.
APAC
In Q1 2025, Thailand's hydrogen peroxide market experienced a mixed trend, ultimately declining by 17.50% compared to Q4 2024, influenced by weakening demand from the pulp and paper sector and oversupply pressures, despite earlier gains in February.
In China, the Sodium Chlorate and Sodium Tripolyphosphate (STPP) markets both followed a persistent downward trajectory, recording quarterly price drops of 7.99% and 4.96% respectively, due to muted downstream demand, high inventories, and cautious export activity amid geopolitical tensions. The Sodium Bisulfite market saw the steepest decline, falling by 18.96%, driven initially by ample supply and weak sulfuric acid prices, although supply constraints and increased demand in March offered some support. Methanol prices in China bucked the trend with a modest 4.22% increase, bolstered by post-holiday demand recovery and freight rate hikes. Conversely, Propylene Oxide declined by 3.06% amid soft construction demand and competitive pressure from imports.
Overall, Q1 2025 in the APAC region was marked by declining prices across most chemical segments due to oversupply, weak demand, and broader macroeconomic uncertainties, with only methanol showing positive momentum.
For the Quarter Ending December 2024
North America
The North American paper and pulp industry in Q4 2024 experienced mixed market conditions, influenced by seasonal demand shifts, supply chain disruptions, and evolving consumer preferences. The demand for bleaching agents such as hydrogen peroxide and sodium chlorate declined as unbleached paper shipments gained traction, reflecting a shift in market preferences.
Additionally, sodium hypochlorite, widely used in water treatment, saw steady demand, but logistical constraints impacted its supply. The printing and packaging segments faced challenges due to inflation and weaker consumer demand, while tissue and specialty paper segments showed resilience. Despite global oversupply and competition, the industry remained stable, supported by essential applications in sanitation, food packaging, and industrial use.
Chemicals like methanol and propylene oxide saw price fluctuations driven by broader industrial trends rather than direct paper industry demand. While supply chain disruptions, including delays caused by hurricanes and regulatory shifts, added market uncertainty, strategic investments in sustainable paper production provided long-term optimism. The North American pulp and paper market remains in a phase of cautious adjustment, balancing traditional demand with emerging sustainable alternatives amid dynamic economic conditions.
APAC
The Asia-Pacific (APAC) paper and pulp industry in Q4 2024 faced shifting demand trends, sustainability pressures, and supply chain challenges. Hydrogen peroxide and sodium chlorate, essential for pulp bleaching, saw lower consumption due to a decline in bleached paper demand, while sodium hypochlorite remained in demand for water treatment. Oversupply of sodium chlorate led to a subdued market, but government policies in India and China continued to promote sustainable packaging, supporting long-term growth.
Meanwhile, the industry prioritized chemical efficiency and cost management, ensuring stable procurement of methanol and propylene oxide, which remained unaffected by major disruptions. Despite logistical constraints and fluctuating energy costs, the sector showed resilience, with sustainable practices driving innovation. Future growth is expected due to urbanization, rising paper consumption, and eco-friendly production methods. While short-term challenges persist, investments in efficiency and sustainability will shape the industry’s trajectory in the coming years.
Europe
The European paper and pulp industry in Q4 2024 experienced challenges due to oversupply, weak demand, and high stock levels, particularly in Germany. Hydrogen peroxide, widely used in pulp bleaching, saw reduced consumption as production slowdowns and price pressures impacted the sector.
Similarly, sodium chlorate, another key bleaching agent, faced declining demand, especially in the BEK pulp market, where global oversupply led to production cutbacks. While tissue and specialty paper segments maintained stable demand, overall market activity remained subdued. Despite these challenges, sustainability initiatives and specialty paper production investments highlighted long-term growth potential. Sodium hypochlorite demand remained strong in water treatment and sanitation, supporting industrial applications.
Methanol and propylene oxide, though primarily used in derivative chemical production, remained stable in the paper sector amid cautious procurement strategies. The paper and pulp industry navigated high energy costs, oversupply, and economic slowdowns, but sustainability-driven innovation and efficiency improvements provided a positive outlook for future market recovery. While short-term challenges persisted, strategic investments in specialty paper and eco-friendly production methods signalled a resilient long-term trajectory.
