For the Quarter Ending September 2025
North America
• In the United States, the Cellulose Price Index rose quarter-over-quarter in Q3 2025, driven by increasing feedstock costs.
• Cellulose production costs increased due to wood pulp PPI rising 0.55% in August 2025 and higher cotton prices.
• The Cellulose demand outlook was mixed, as US construction spending fell 2.85% year-over-year in Q3 2025.
• Industrial production expanded 0.1% month-over-month in September 2025, providing some support to overall demand.
• National commercial cotton inventories decreased 20% year-on-year by August 2025, tightening feedstock supply.
• US export sales of cotton were low in September 2025, influenced by extended trade duty pauses with China.
• The Producer Price Index rose 2.6% year-over-year in August 2025, indicating broader inflationary pressures on production.
Why did the price of Cellulose change in September 2025 in North America?
• Production costs increased due to rising wood pulp PPI and higher cotton prices in Q3 2025.
• Demand was tempered by a 2.85% year-over-year decline in US construction spending in Q3 2025.
• Reduced national cotton inventories by 20% year-on-year in August 2025 tightened feedstock supply.
APAC
• In China, the Cellulose Price Index fell quarter-over-quarter in Q3 2025, influenced by declining pulp feedstock costs and producer prices.
• Cellulose production costs trended downwards due to a moderate decline in Northern Bleached Softwood Kraft spot prices in Q3 2025.
• Softwood pulp reference prices in Shandong decreased in September 2025, further contributing to lower production expenses.
• Asian containerboard and boxboard demand is projected to grow by 3.9% and 3.3% respectively in 2025, boosting Cellulose consumption.
• Industrial production expanded by 6.5% year-on-year in September 2025, indicating robust manufacturing activity supporting demand.
• China's Cellulose exports increased by 4.2% from July to August 2025, while imports decreased by 3.59% in the same period.
• Pulp inventories at mainstream Chinese ports showed a narrow destocking trend in September 2025, decreasing by 0.2%.
• The Manufacturing Index expanded in September 2025, reflecting overall economic output growth, which positively impacts industrial demand.
• Retail sales increased by 3.0% year-on-year in September 2025, supporting packaging demand and the shift to paper-based products.
Why did the price of Cellulose change in September 2025 in APAC?
• Producer prices decreased by 2.3% year-on-year in September 2025, reducing overall manufacturing input costs.
• Consumer prices decreased by 0.3% year-on-year in September 2025, contributing to a general deflationary environment.
Europe
• In Germany, Cellulose Price Index fell quarter-over-quarter in Q3 2025, influenced by declining industrial production.
• Cellulose production costs trended lower in Q3 2025, supported by a 5.7% year-on-year decline in natural gas prices.
• Cellulose demand outlook remains subdued; construction output decreased 2.20% year-on-year in September 2025.
• New orders in German factories fell 3.6% quarter-on-quarter in Q3 2025, impacting Cellulose demand.
• Exports from German factories dropped 5.2% in Q3 2025, indicating weaker external Cellulose demand.
• The Producer Price Index (PPI) decreased 1.7% year-on-year in September 2025, reflecting broader deflationary pressures.
• Industrial production in Germany was down 1.0% year-on-year in September 2025, reducing Cellulose consumption.
• The Cellulose Price Index is forecast to remain stable or decline, driven by weak demand and lower input costs.
Why did the price of Cellulose change in September 2025 in Europe?
• Industrial production in Germany decreased 1.0% year-on-year in September 2025, curbing demand.
• Construction output in Germany fell 2.20% year-on-year in September 2025, affecting end-use sectors.
• Producer prices for industrial products were 1.7% lower year-on-year in September 2025, easing cost pressures.
