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
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.
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.
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.
