For the Quarter Ending September 2025
North America
• In United States, the Lignin Price Index rose quarter-over-quarter in Q3 2025, driven by escalating production costs.
• Lignin production costs increased due to a 3.0% year-over-year rise in CPI in September 2025.
• Producer Price Index increased 2.6% year-over-year in August 2025, elevating Lignin manufacturing expenses.
• Industrial electricity costs strengthened in August 2025, contributing to higher Lignin production expenses.
• US natural gas prices experienced an overall uptick in Q3 2025, impacting Lignin feedstock costs.
• Lignin demand outlook was mixed; automotive sales surged in September 2025, while construction activity weakened in August 2025.
• Overall industrial production saw a marginal 0.1% year-over-year increase in September 2025, indicating stable Lignin demand.
• Strong retail sales, up 5.42% year-over-year in September 2025, indirectly supported Lignin demand in consumer goods.
• Low unemployment at 4.3% in September 2025 supported overall economic activity and Lignin consumption.
Why did the price of Lignin change in September 2025 in North America?
• Lignin production costs rose due to a 2.6% year-over-year increase in PPI in August 2025.
• Industrial electricity costs strengthened in August 2025, increasing Lignin manufacturing expenses.
• Automotive sales surged in September 2025, providing some demand support for Lignin applications.
Europe
• In Germany, the Lignin Price Index fell quarter-over-quarter in Q3 2025, driven by weakened industrial production and chemical demand.
• Lignin production costs eased due to a 1.7% decline in producer prices in September 2025, driven by lower energy.
• Rising input costs, with CPI up 2.4% in September 2025, contributed to upward pressure on Lignin production expenses.
• Lignin demand outlook was bearish, with industrial production down 1.0% and manufacturing contracting in Q3 2025.
• The German chemical industry's business climate significantly deteriorated in July 2025, signaling reduced Lignin consumption.
• Pulp inventories at major European ports tightened slightly in September 2025, impacting Lignin feedstock availability.
• Export demand for chemicals weakened in Q3 2025, further dampening overall Lignin market activity.
• Retail sales rose 0.2% in September 2025, with unemployment stable at 6.3%, offering slight indirect demand support.
Why did the price of Lignin change in September 2025 in Europe?
• German industrial production fell 1.0% in September 2025, significantly reducing overall Lignin demand.
• Producer prices declined 1.7% in September 2025 due to lower energy, easing Lignin production costs.
• Elevated natural gas prices in Q3 2025 sustained cost pressure on Lignin manufacturing.
APAC
• In China, the Lignin Price Index fell quarter-over-quarter in Q3 2025, due to weak industrial demand.
• Lignin production costs rose in Q3 2025, influenced by increased hardwood pulp feedstock costs in September 2025.
• Lignin demand outlook was mixed; robust industrial output (6.5% YoY September 2025) offset soft domestic consumption.
• A contracting Manufacturing Index in September 2025 dampened overall Lignin demand by indicating reduced new orders.
• Deflationary pressures, with CPI at -0.3% YoY in September 2025, contributed to weaker consumer demand.
• Elevated inventories in the paper and paperboard industry (Jan-Aug 2025) and global chemical overcapacity impacted Lignin.
• Increased pulp imports (Jan-Aug 2025) intensified supply pressures for Lignin, affecting market balance.
• Industrial power rates and electricity prices experienced slight increases in Q3 2025, raising Lignin production costs.
Why did the price of Lignin change in September 2025 in APAC?
• Weak industrial demand, with PPI falling -2.3% YoY in September 2025, pressured Lignin prices.
• Rising hardwood pulp feedstock costs in September 2025 contributed to higher Lignin production expenses.
• A contracting Manufacturing Index in September 2025 signaled reduced new orders, impacting Lignin demand.
