For the Quarter Ending June 2025
North America
• The Price Index of Nitrocellulose in North America remained largely stable during Q2 2025, as improved domestic production and consistent inventory levels helped balance moderate fluctuations in feedstock costs.
• Early in the quarter, demand from coatings and automotive sectors remained soft, particularly in the U.S. and Mexico, as construction activity slowed and OEMs continued to de-stock, limiting any potential upside in price realization.
• Feedstock Nitric Acid prices saw minor volatility, but ample availability across major U.S. Gulf Coast producers kept procurement costs relatively in check for Nitrocellulose manufacturers.
• Imports from Asia—particularly China—increased marginally, as freight rates on transpacific routes declined early in the quarter; however, price competitiveness remained mixed due to quality and compliance differences, preventing strong substitution away from local supply.
• Export demand into Latin America remained moderate, with no major buying momentum from Brazil or Argentina; combined with conservative purchasing strategies across end-use sectors, this resulted in a broadly flat Price Index.
Why Nitrocellulose Prices Remained Stable in July 2025
• Consistent Feedstock Costing: The cost of upstream materials, especially Cotton Linters and industrial-grade acids—showed no major swings, supporting stable manufacturing economics.
• Flat End-Use Demand: End-user pull from coatings, printing, and packaging industries remained broadly neutral, neither rising nor falling sharply across the month.
• Balanced Supply Conditions: Domestic producers and importers carried sufficient inventory levels, with no unplanned outages or demand surges to drive price adjustments.
• Muted Import Activity: While imports from Asia continued, there was no spike in volume or delays, ensuring stable availability and preventing spot market volatility.
• Controlled Freight Costs: Although shipping rates from Asia remained elevated, they did not increase further in July. Inland logistics across the U.S. and Canada operated without major disruptions, helping keep distribution costs predictable.
APAC
The Price Index of Nitrocellulose in APAC rose by 3.3% quarter-on-quarter in Q2 2025, with prices stabilizing at INR 314,000/MT by June, supported by a balanced supply-demand environment and cautious inventory management by suppliers.
• Throughout Q2, the Indian market faced price competition from Chinese-origin inventories, particularly in April, as redirected exports—initially bound for North America—were offloaded into Southeast Asia and India, creating downward pressure despite firming cost structures.
• Input costs increased, especially for Nitric Acid, which rose to 5% in April due to plant shutdowns across key domestic producers; however, domestic suppliers were largely unable to pass on these costs, resulting in stable pricing through May and June despite margin pressure.
• Domestic demand remained subdued, especially from the paints and coatings sector, due to a slowdown in new residential projects, labor shortages, and weak infrastructure output; this was further exacerbated by the early onset of the monsoon season in June, delaying construction activity.
• Export demand showed marginal improvement during the quarter, particularly from Saudi Arabia post-Ramadan, though it was offset by weak offtake from North America and the Middle East due to holiday closures and tariff-related uncertainties, limiting the overall support to the Price Index.
Why did the price of Nitrocellulose change in July 2025 in APAC?
The price of Nitrocellulose remained stable in APAC during July 2025 due to the following key factors:
• Balanced Feedstock Availability: Prices of key raw materials like Nitric Acid and Cotton Linters remained relatively stable in July, with no major disruptions in domestic or regional supply, keeping production costs in check.
• Moderate Demand from Downstream Sectors: Consumption from major end-use industries such as paints, coatings, printing inks, and automotive sectors stayed steady but did not witness significant upticks, maintaining a neutral demand environment.
• Ample Regional Inventory: Producers and distributors across countries like China, India, and Southeast Asia carried sufficient stock from earlier months, which minimized aggressive buying and stabilized pricing.
• Limited Export Momentum: Export activity remained moderate due to global economic caution and lack of strong buying from key destinations like Europe and North America, reducing external price pull.
• Stable Freight Environment: Shipping costs within the region saw minimal fluctuation in July, and there were no major logistical bottlenecks, allowing consistent supply without inducing any additional cost pressure.
Europe
• The Price Index of Nitrocellulose in Europe also held steady during Q2 2025, as stable domestic production and predictable demand from traditional end-use segments provided a base for price consolidation.
• Feedstock pricing remained steady, with nitric acid and cotton linters showing low volatility amidst balanced supply conditions across Western Europe; this helped maintain input cost stability.
• Demand from paints, coatings, and printing inks was steady but unspectacular, as high borrowing costs and labor constraints weighed on new construction and renovation projects across the region.
• Import volumes from Asia declined, especially from China, due to stricter EU compliance standards and longer lead times. European buyers leaned more on intra-regional sources to ensure consistent product quality.
• Although there was minor demand recovery in Southern Europe, particularly in Spain and Italy during the pre-summer construction rush, this was not enough to shift pricing dynamics significantly across the broader European market.
Why Nitrocellulose Prices Remained Stable in July 2025
• Steady Raw Material Inputs: Prices for essential feedstocks like Nitric Acid and Cotton Linters held firm across July, resulting in stable production costs for European Nitrocellulose manufacturers.
• Predictable Consumption Patterns: Demand from downstream industries such as automotive refinishing, wood coatings, and specialty inks remained consistent without significant fluctuations.
• Well-Managed Inventory Levels: Distributors and suppliers across key markets such as Germany, Italy, and France maintained adequate stock positions, preventing any urgent restocking or price-driven purchases.
• Subdued Export Orders: Outbound shipments to neighboring markets, including the UK and Eastern Europe, did not show any sharp changes, keeping regional supply-demand dynamics balanced.
• Uninterrupted Logistics: Smooth freight movement across EU borders and minimal port delays helped keep additional distribution costs under control, supporting stable spot pricing.
MEA
The Price Index of Nitrocellulose in the MEA region rose by approximately 2.6% quarter-on-quarter in Q2 2025, supported by moderate post-Ramadan demand recovery and incremental increases in freight costs, particularly on cargoes arriving from Asian export hubs.
• April 2025 saw a modest uptick in the Price Index, primarily driven by restocking activity from the construction sector following Ramadan. Although Indian-origin cargoes carried higher cost structures, the influx of competitively priced Chinese shipments ahead of the Labour Day holidays kept market levels in check.
• In May 2025, the Price Index remained flat, as market activity slowed ahead of the Eid Al Adha holidays. Most buyers operated with sufficient inventory, while suppliers focused on clearing earlier stock. Limited fluctuations in forex rates, particularly a marginal strengthening of the Saudi Riyal, contributed to price stability.
• By June 2025, the Price Index increased slightly, influenced by a sharp 33% surge in freight rates from Asia due to Red Sea security disruptions. While Indian exporters held prices steady, Saudi-based suppliers attempted partial cost pass-throughs, achieving only moderate success due to buyer resistance and cautious procurement strategies.
• Overall, the MEA Nitrocellulose market recorded a quarter-on-quarter Price Index gain of 2.6% in Q2 2025, as persistent heatwaves in June and pre-holiday slowdowns in May tempered demand, but supportive fundamentals from construction and coatings sectors—underpinned by Vision 2030 projects—maintained an upward bias.
Why did the price of Nitrocellulose change in July 2025 in MEA?
• Stable Raw Material Availability: Input costs for key feedstocks like Nitric Acid and Cotton Linters remained largely unchanged in July, enabling Nitrocellulose producers in MEA to maintain steady production economics.
• Consistent End-Use Demand: Consumption from downstream sectors such as wood coatings, printing inks, and industrial finishing stayed within expected seasonal norms across major MEA markets.
• Controlled Inventory Holdings: Regional suppliers and distributors in hubs like the UAE, Saudi Arabia, and Egypt held sufficient inventory, reducing the need for aggressive restocking or reactive purchases.
• Flat Export Activity: Export flows to North and Sub-Saharan Africa remained steady, with no major surges or cancellations, contributing to a well-balanced market outlook.
• No Major Logistical Disruptions: Overland and port operations across key transit corridors, including Jeddah and Port Said, functioned without interruption, keeping freight expenses predictable and helping stabilize price levels.
For the Quarter Ending March 2025
North America
The North American Nitrocellulose market exhibited a mixed performance in Q1 2025. Supply remained stable throughout the quarter, with excess inventories preventing price hikes despite weak feedstock market activity and low-priced imports. Freight rate surges from Asia had a minimal impact due to abundant supply and subdued demand. Demand from the downstream paints and coatings sector was weak, largely due to severe winter disruptions in construction activity and delayed projects. The Nitrocellulose supply continued to be adequate with steady domestic production and lower freight costs.
However, competition in the global market increased, with capacity additions in China impacting the market. Severe cold weather disrupted petrochemical operations, but facilities began to normalize. Demand remained weak in the construction and coatings industries due to challenges in the housing market and delayed projects.
Overall, Nitrocellulose prices remained stable amid weak feedstock prices and reduced demand from the paints and coatings sector. Global supply oversaturation and intensified export competition contributed to continued price declines. While U.S. manufacturing activity showed slight improvement, construction sector demand remained weak, dampening the Nitrocellulose market prospects.
Europe
The European Nitrocellulose market exhibited a mixed performance in Q1 2025. Supply remained stable throughout the quarter, with excess inventories preventing price hikes despite weak feedstock market activity and low-priced imports. Freight rate surges from Asia had a minimal impact due to abundant supply and subdued demand. Demand from the downstream paints and coatings sector was weak, largely due to severe winter disruptions in construction activity and delayed projects. The Nitrocellulose supply continued to be adequate with steady domestic production and lower freight costs. However, competition in the global market increased, with capacity additions in China impacting the market. Severe cold weather disrupted petrochemical operations, but facilities began to normalize. Demand remained weak in the construction and coatings industries due to challenges in the housing market and delayed projects. Overall, Nitrocellulose prices remained stable amid weak feedstock prices and reduced demand from the paints and coatings sector. Global supply oversaturation and intensified export competition contributed to continued price declines. While European manufacturing activity showed slight improvement, construction sector demand remained weak, dampening the Nitrocellulose market prospects.
APAC
The APAC Nitrocellulose market experienced a predominantly bullish trend throughout Q1 2025, driven by low inventories and higher production costs. In January, moderate demand from the automotive coatings sector and the Middle Eastern market helped push prices up, though inventory levels remained a limiting factor for significant price hikes. By February, dwindling stocks and improved demand, particularly from the Middle East during Ramadan, contributed to further price increases. Suppliers, facing rising production costs, passed on these increases to customers, but no major logistical disruptions occurred. In March, a minor price increase was observed, but supply remained stable as sellers focused on liquidating older inventories. Demand from the downstream ink sector showed modest seasonal improvement due to the new academic year, while the construction sector remained sluggish. Export demand, particularly from the Saudi Arabian market, was muted due to slowdowns in the packaging sector during Ramadan. Domestic demand in the construction industry was weak, exacerbated by affordability concerns in the residential real estate market. Overall, demand remained cautious, with procurement activity primarily driven by restocking in the coatings sector and modest seasonal upticks in printing ink demand.
For the Quarter Ending December 2024
North America
The North American Nitrocellulose market experienced a mix of conditions throughout Q4 2024, with import conditions initially creating a bullish market situation. In early October, a strike between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) disrupted port operations. Although the strike lasted only three days, it caused significant delays, with many ships left waiting to unload their cargo. This created a shortage in the supply of Nitrocellulose, putting pressure on the market and pushing prices higher in the short term. Suppliers were reported to be working with existing inventories, trying to manage the situation despite these disruptions and prevented ordering additional cargos from APAC due to rising production costs.
Adding to the challenges, the seasonal hurricane conditions, which persisted until November 2024, further disrupted logistical operations, exacerbating delays in shipments. These weather-related issues, combined with the strike, made it difficult to replenish inventories in a timely manner. On the demand side, conditions remained weak, particularly in the downstream construction sector. A noticeable decline in construction spending throughout the quarter contributed to a decrease in Nitrocellulose consumption, resulting in a more cautious market outlook.
As the quarter progressed and the holiday season approached, market activity slowed. Suppliers focused on inventory liquidation to clear excess stock, which led to a softening of prices toward the end of the quarter. This liquidation, alongside the ongoing challenges in construction demand, resulted in a market that wound down cautiously, reflecting both the disruptions and seasonal trends.
APAC
The APAC Nitrocellulose market experienced mixed conditions in Q4 2024. Prices initially rose by about 1.7%, then stabilized, and eventually declined by the same amount. Early in the quarter, rising production costs were passed on to customers, but suppliers relied on inventories accumulated during Q3, following disruptions from the monsoon season. This inventory surplus helped mitigate price hikes.
Some buyers were optimistic about the automotive sector and the festive season, leading to speculative bids. However, most suppliers maintained stable inventory levels, with slight fluctuations in production costs. By November 2024, demand from downstream industries such as coatings and construction remained sluggish, contributing to lower consumption and subdued market activity. Exports to Saudi Arabia were also affected by security concerns in the Red Sea and port closures in early November.
As the quarter progressed, suppliers focused on destocking to prepare for the year-end. Despite rising raw material cellulose prices, which helped stabilize the market, suppliers rolled over prices or offered slight reductions. By December, the market was generally bearish, with minimal completed deals due to the festive season's impact on business activity. The market remained subdued, with export conditions slow and limited transactions.
Europe
The European Nitrocellulose market experienced predominantly bearish conditions in Q4 2024, with prices declining throughout the quarter. Demand remained weak, as the European construction sector continued its downturn, leading to a generally negative sentiment in procurement activities. At the start of the quarter, a modest price increase occurred due to rising production costs in the Asian market. However, as the quarter progressed, destocking activities became the main focus, with suppliers prioritizing inventory liquidation.
Disruptions in international trade continued, with many of the Northwest ports in Europe undergoing maintenance, leading to inventory accumulation across European ports. This situation kept the market amply supplied, with no significant disruptions observed, which further contributed to the downward price trend. By December 2024, the market remained well-supplied, and the growing momentum of destocking activities pushed prices lower throughout the month. Overall, the combination of weak demand, logistical challenges, and inventory build-up led to continued price declines in the European Nitrocellulose market.
MEA
The Middle East Nitrocellulose market saw mixed conditions in Q4 2024. Prices initially rose by 0.2%, but then declined by 3% for the remainder of the quarter. Early on, Saudi suppliers linked price fluctuations to increased production costs in India. However, most Saudi suppliers relied on substantial inventories from Q3, which helped mitigate the impact of higher production costs. Additionally, an 8% drop in global freight charges offset some cost pressures from India. With abundant domestic supplies and concerns over Red Sea cargo delays, Saudi suppliers focused on using existing inventories instead of placing new bids.
Mid-quarter, production costs in Asia remained stable, but adverse weather in Southeast Asia disrupted shipments to Saudi Arabia. Port closures in India during early November further delayed shipments. Despite these challenges, Saudi suppliers maintained adequate inventory levels. As the quarter ended, suppliers prioritized liquidating existing stock to avoid inventory depreciation, contributing to further price declines.
By the end of Q4, rising production costs in Southeast Asia, driven by higher raw material cellulose prices, partly countered the price drops in Saudi Arabia. Nevertheless, inventory liquidation and shipment delays, particularly at the port of Jeddah, caused prices to trend downward in December 2024, with procurement activity described as moderate.
For the Quarter Ending September 2024
North America
The Nitrocellulose market in North America experienced significant volatility during the third quarter of 2024. Initially, prices rose due to low inventories arriving from the Asian market, which were impacted by port congestion and heightened manufacturing costs. This situation resulted in expensive inventory arrivals in the U.S. market, leading to upward price pressures. Additionally, disruptions within the cellulose market were notable. A labor dispute in Canada involving Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) led to the lockout of over 9,000 workers, constraining the supply of cellulose feedstock and causing moderate production of Nitrocellulose across the U.S. These supply challenges further exacerbated the situation.
Demand conditions from the coating industries remained moderate, largely influenced by the ongoing hurricane season, which resulted in off-season conditions affecting consumer activity. As the quarter progressed, consumer confidence began to wane amid uncertainties related to the upcoming election season. This diminished sentiment prompted suppliers to exercise caution, leading to a reluctance to purchase in bulk.
Overall, the combination of supply constraints and shifting demand dynamics created a complex market environment for Nitrocellulose in North America during this period.
Europe
The European Nitrocellulose market experienced a predominantly upward trend during the third quarter of 2024, driven by expensive inventories arriving from the Asian market. Participants in the Asian export market reported heightened manufacturing costs, which contributed to the increased prices of inventories reaching Europe. Additionally, the arrival of these inventories was significantly delayed due to renewed geopolitical tensions, particularly affecting conditions at the Red Sea. This prompted carriers to reroute shipments through the Cape of Good Hope, despite a decrease in freight charges from Asia to Europe. On the demand side, however, conditions in the European market remained weak throughout the quarter. A persistent downturn in the construction sector, compounded by strikes, hindered the circulation of Nitrocellulose within the domestic market. Furthermore, post-summer vacation demand from the printing and packaging industry was subdued, reflecting ongoing challenges across these key sectors. As a result, while prices increased due to supply-side constraints, the overall demand environment remained lackluster.
APAC
The third quarter of 2024 saw a significant surge in Nitro Cellulose prices across the APAC region, with India experiencing the most pronounced changes. Several interrelated factors contributed to this price increase, including rising production costs, limited supplies, and heightened demand from the Middle East market. These dynamics collectively drove prices upward, exacerbated by logistical and transportation disruptions that further impacted supply levels. In India, supplies remained low during the onset of the quarter due to the monsoon season, which created challenging conditions for logistics and transportation. Manufacturers consistently cited increased production costs as the primary driver behind rising prices. Additionally, the peak demand for cotton during this period led to higher cellulose prices, which in turn influenced Nitro Cellulose pricing. Midway through the quarter, Nitro Cellulose manufacturers continued to report escalating production costs as a significant factor in price increases. Persistent rains compounded the logistical challenges, slowing the circulation of products and leading to higher transportation expenses. Toward the end of the quarter, however, suppliers noted an ample availability of Nitro Cellulose in the market, along with a reduction in production costs, which contributed to some price depreciation. Exports to key Southeast Asian markets were notably subdued, largely due to adverse conditions like Typhoon Bebinca affecting regions such as Vietnam and Thailand. Demand conditions in India remained tepid, particularly in the automotive sector, which struggled throughout the quarter. Despite these challenges, the overall market in India exhibited a bullish trend, with Nitro Cellulose prices increasing steadily. Seasonal factors, including the monsoon season, influenced demand patterns across sectors like construction and automotive, resulting in fluctuations. Nevertheless, the quarter-ending price of USD 285,000 per metric ton of Nitro Cellulose Ex-Mumbai reflects a 9% increase from the previous quarter and a 2% increase from the first half of the quarter.
MEA
In Q3 2024, the Nitrocellulose market in the MEA region experienced a significant upward trend in prices, with Saudi Arabia seeing the most pronounced increases. Several interrelated factors drove this price surge. Key among them were supply constraints caused by escalating production costs and various logistical challenges that hampered the smooth flow of materials. Additionally, heightened demand from industries such as automotive coatings and packaging contributed to the upward pressure on prices, as these sectors sought to secure reliable supplies amid growing market needs. The overall market trajectory reflected a positive outlook, with seasonal influences and market correlations further amplifying price changes. When compared to the same quarter last year, the price escalation was substantial, indicating a marked evolution in market conditions. The quarter-on-quarter price change of 8% underscored the volatility that characterized this segment. The first half of the quarter saw a gradual price incline, culminating in a quarter-ending price of USD 4080 per metric ton of Nitrocellulose ex-Jeddah. This figure signals a robust and expanding pricing environment, suggesting that demand dynamics and supply challenges will continue to shape the market in the coming months.
FAQ’s
1. What are the primary feedstocks influencing Nitrocellulose prices in the MEA region?
Nitrocellulose prices in MEA are closely tied to the costs of Cotton Linters and Nitric Acid. Any fluctuation in the availability or price of these inputs—often affected by global agricultural trends and petrochemical market dynamics—can directly impact regional production costs and market offers.
2. How does the quality of Cotton Linters affect Nitrocellulose pricing?
Higher-grade Cotton Linters, with low impurity levels and optimal fiber length, yield better-quality Nitrocellulose used in high-performance coatings and inks. When availability of premium-grade linters is constrained, manufacturers may need to pay a premium or import, leading to upward pricing pressure.
3. Why do shipping logistics play a critical role in MEA Nitrocellulose pricing?
Given the region's reliance on both intra-regional trade and imports from Asia and Europe, port congestion, customs delays, or freight rate increases can significantly raise delivery costs. These are often passed on in final Nitrocellulose pricing, especially for bulk shipments.
4. How do safety and storage regulations in MEA countries impact Nitrocellulose market dynamics?
Due to Nitrocellulose’s flammable nature, storage and transport are highly regulated in countries like the UAE, Saudi Arabia, and Egypt. Stringent regulatory compliance can increase handling costs, which in turn influences the overall price structure, particularly for industrial users.
5. What downstream sectors most influence Nitrocellulose demand in MEA?
The major demand drivers include wood coatings, automotive refinishing, and printing inks. Seasonal construction and industrial activity across the GCC and North African countries often dictate the procurement volume, thus influencing short-term price trends.
