Asia
The Asian region witnessed fluctuating trends during 2024. The first half maintained relatively stable pricing, while the third quarter saw corrections due to accumulating inventories. Currency fluctuations played a significant role, as the weakening Chinese yuan made exports more competitive but pressured domestic margins.
By the fourth quarter, Chinese suppliers engaged in aggressive destocking through discounted pricing strategies, partly responding to geopolitical uncertainties including potential new tariffs. Low production costs from weak feedstock wood pulp prices allowed manufacturers to maintain margins despite lower selling prices.
Europe
European MCC markets experienced a consistent downward trajectory throughout 2024. Initial optimism quickly gave way to bearish sentiment as economic challenges in the Eurozone limited growth. The euro's depreciation against the dollar increased import costs, while competitive Asian supplies influenced market dynamics. The second half saw further price deterioration due to sluggish demand and limited procurement. Operational challenges, including weather conditions and logistical disruptions at major ports, created additional complexities. High inventory levels from cautious stockpiling created market imbalances that pushed prices lower in the final months.
North America
The North American Microcrystalline Cellulose (MCC) market followed a predominantly bearish pattern throughout 2024. The market started stable but declined as competition from Asian imports intensified. U.S. buyers delayed purchases anticipating further price drops, while high domestic inventories forced suppliers to implement aggressive pricing strategies. Reduced demand from the pharmaceutical sector, especially for cholesterol-lowering medications, weakened the market further. The depreciation of the U.S. dollar against the yuan made Chinese imports more cost-effective, driving prices lower by year-end.