For the Quarter Ending March 2025
North America
In Q1 2025, the U.S. Microcrystalline Cellulose (MCC) market experienced strong price increases through January and February, driven by heightened demand from the pharmaceutical, food, and cosmetics sectors. Manufacturers in these industries secured stocks amid supply chain disruptions, particularly those related to port congestion and labor shortages. Additionally, rising wood pulp prices in China and increased shipping costs further contributed to upward pricing pressure. These factors created a tight market environment, maintaining elevated prices through much of the quarter.
By February, the market was still under the influence of logistical constraints, with shipping backlogs and delays following the Chinese Lunar New Year exacerbating supply shortages. Speculative buying and stockpiling intensified the upward trend as traders and manufacturers anticipated continued disruptions. The weakening of the U.S. dollar against major currencies also raised import costs, reinforcing the price surge in MCC.
However, in March 2025, the market began to stabilize. Improved logistics and reduced speculative purchasing helped ease the upward pressure on prices. While demand from key sectors remained steady, the cooling of speculative buying and better supply flow led to a slight decrease in prices by the end of the quarter, marking a shift toward a more balanced market.
Asia Pacific
In the first quarter of 2025, the Microcrystalline Cellulose market in China showed a shifting trend, beginning with a price rebound in January. The recovery was driven by strong international procurement from the pharmaceutical and food sectors, as buyers anticipated the Lunar New Year holiday disruptions. Chinese suppliers, having aggressively destocked in late 2024, adjusted their pricing strategies to capitalize on improved demand. A slight increase in feedstock wood pulp prices also supported this upward movement, and overall trade performance remained strong despite broader manufacturing slowdowns.
However, by February, market conditions shifted as supply improved significantly after the holiday. Domestic demand weakened, and global economic uncertainties led to softer export activities, creating an oversupply situation. Manufacturers, facing high inventory levels, were compelled to lower prices to sustain sales. Falling wood pulp prices further reduced production costs, enabling more competitive pricing strategies. Trade barriers and tariffs limited export opportunities, intensifying the downward price pressure throughout the month.
The declining trend steepened in March as oversupply conditions persisted and downstream demand remained muted. Manufacturers continued to destock aggressively amid weak procurement from domestic and overseas markets. With soft raw material costs and constrained international trade, Microcrystalline Cellulose prices in China registered a sharp overall decline by the end of Q1 2025, reflecting a buyer-driven market.
Europe
In Q1 2025, the German Microcrystalline cellulose (MCC) market saw significant price fluctuations, beginning with a sharp increase in January. This rise was driven by improved procurement conditions from international suppliers, along with strategic stockpiling by buyers ahead of the Lunar New Year. Despite weak demand in some sectors, such as pharmaceuticals, the market benefited from a stabilized supply side, supporting higher prices and a cautiously optimistic outlook for the quarter.
However, in February 2025, the market experienced a notable price decline. Weaker demand, particularly from the pharmaceutical and food sectors, combined with improved production and steady imports, led to lower prices. Additionally, the easing of logistical challenges, including a significant drop in ocean freight rates, further alleviated supply-side pressures. The appreciation of the euro also contributed to reduced import costs, reinforcing downward price movement.
By March 2025, the market stabilized with moderate recovery, as prices began to adjust to more normalized levels. Despite continued cautious demand and economic uncertainty, the easing of supply chain constraints allowed for a more balanced market. Looking ahead, the market is expected to see gradual price stabilization as supply-side conditions improve, but price volatility may persist depending on global demand and macroeconomic factors.
For the Quarter Ending December 2024
North America
In Q4 2024, the North American Microcrystalline Cellulose market saw a notable decline, with prices staying on the weaker side. The price drop was largely driven by reduced production costs in major manufacturing regions, leading to heightened price competition among global exporters. U.S. buyers delayed purchases, anticipating further price drops, while high domestic inventories led suppliers to adopt aggressive pricing strategies. Additionally, the depreciation of the U.S. dollar against the yuan made imports from China more cost-effective, increasing market pressure.
Chinese imports continued to drive down prices, supported by favorable production conditions in China and the yuan’s depreciation, which kept export prices competitive. Weak demand from the pharmaceutical sector, particularly for Microcrystalline Cellulose used in cholesterol-lowering medications, resulted in stagnant market activity and excess stock. Domestic suppliers, struggling with sluggish sales, implemented aggressive destocking strategies to manage inventory.
By December, the market sentiment remained negative, with reduced procurement and muted demand from key sectors. Intense price competition from Chinese imports further pressured U.S. suppliers, leaving the market in a bearish state with little expectation of price recovery.
Asia Pacific
The APAC Microcrystalline Cellulose (MCC) market, particularly from China, exhibited a general downward trend in Q4 2024, with a brief mid-quarter recovery. In October, the market experienced price corrections driven by weak demand and excess inventory. The resulting supply-demand imbalance created favorable conditions for buyers, compelling manufacturers to reduce prices. Moreover, currency fluctuation played another significant role as a weaker Chinese yuan helped make MCC more affordable for foreign buyers, further driving down export prices for this month also. Supporting to this further, this trend was exacerbated by geopolitical uncertainties, including President-elect Trump’s announcement of potential new tariffs, which prompted aggressive destocking by Chinese suppliers through discounted pricing strategies. Additionally, China's currency devaluation in response to tariff threats added complexity to pricing dynamics, further pressuring export prices. High inventory levels and conservative purchasing strategies from key importing nations reinforced bearish market sentiment. Meanwhile, cost support from feedstock wood pulp remained weak, keeping production costs low and prices under pressure. As a result, these factors collectively sustained the downward trajectory in export prices for Microcrystalline Cellulose from China with market transactions leaning on the southerly side.
Europe
Germany's Microcrystalline Cellulose (MCC) market experienced predominantly bearish conditions throughout Q4 2024. Prices declined due to weak downstream demand and limited procurement activity, exacerbated by the depreciation of the euro against the USD, which increased import costs. Competitive Asian supplies further influenced market dynamics. In November, the downtrend continued, driven by reduced production costs in APAC countries and sluggish economic activity in the eurozone. As a major importer, Germany reflected international pricing trends, with traders adopting cautious strategies. In December, the market faced additional pressures from surplus supply and weakened buying sentiment. Stockpiling during the holiday season resulted in excess inventory, leading to market imbalances. Operational challenges, including adverse weather, reduced workforce availability, and port congestion at Rotterdam and Hamburg, disrupted logistics and raised transportation costs. Consequently, buyers remained hesitant, limiting purchases to immediate needs. The quarter ended with reduced import volumes and sustained price depression, driven by persistent euro devaluation, high inventory levels, and seasonal disruptions.
