The Nitrocellulose industry saw a soft trend in 2025 as a whole, with prices experiencing moderate downward pressure in most regions during the year. During the first quarter, prices declined gradually as demand from major end-use industries remained soft in regions. Supply was impacted by production curtailments and maintenance in some East Asia regions; however, these were limited by low demand. Export orders out of China were low, while pharmaceutical and food industry demand were supportive on a limited scale.
During the second quarter, prices continued their softening trend as European pulp prices declined due to low downstream demand and increased competitive pressure from diverted Chinese paper products. Trade tensions, including new tariffs on imported pulp into the U.S., were a factor in a hesitant purchasing attitude as buyers delayed purchases and inventory piled up at ports.
In the third quarter, the US market experienced early weakness driven by high inventory levels. However, the removal of tariffs on Brazilian pulp helped stabilize prices slightly. China reported minor uptrends as local inventory levels decreased. Producer-led price movements helped support the market.
In the fourth quarter, Nitrocellulose prices were slightly pressured downward due to low demand in the paper, packaging, and other related industries. Oversupply, especially from Brazilian exports, and conservative inventory management in the US and European markets contributed to the weakness.