Asia
Asian cellulose ether prices in Q2 2025 were affected by persistent weakness in upstream wood pulp prices and slack seasonal demand. The market experienced a steady reduction in pulp prices as major ports maintained high inventories and downstream demand remained weak. While there was some disruption to supply in producing nations, it had little effect on availability. Broadleaf and softwood pulp exports to China held steady or rose, but downstream applications like packaging and cultural paper still saw lower operating rates.
Although there was some recovery in paper mill production following the May Day holiday, buyers were still timid and tended to purchase on an as-needed basis. The net effect was a subdued pricing climate for cellulose ether, with thin transaction volume and narrow margins. Rolling futures and decreased trade risk on softening tariffs temporarily boosted sentiment, but general price direction remained constrained within a tight range.
Europe
In Europe, the market for cellulose ether dropped further with BEK pulp values continuing to drop. Pulp producers experienced increasing pressure with low prices and little success in enforcing rises. The balance of market power shifted towards buyers with a number of them resisting new offers and postponing orders. The pressure was fueled by soft demand for major end-use industries including construction, paint, and coatings.
Concern over the surge in Asian paper products, caused by rerouted shipments originally bound for the U.S. market, added pressure. Port inventories continued high, and slow paper and board segments helped to keep caution present. Although NBSK pulp exhibited some price stability, it did not carry over into stronger pricing for cellulose ether. Sentiment was poor, and producers tempered production in accordance with slower offtake.
North America
Cellulose ether prices in North America were relatively flat, although cost structures continued to come under pressure from raw material volatility and changing trade dynamics. Though tariffs continued to influence sourcing strategies, the market was somewhat cushioned by demand in markets like oilfield services, food, and pharma.
However, buyer behavior was influenced by backlogged shipments and extended order cycles, and this resulted in a cautious buying strategy. Competition from Latin American and Asian producers increased, providing alternative supply channels with better logistics and cost terms. Local suppliers thus experienced pushback on prices, and total transaction volumes were modest during the quarter.