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In the first half of 2025, the paper chemicals market has experienced moderate fluctuations, driven by shifts in raw material costs, regional supply chain adjustments, and downstream demand from the packaging and tissue paper sectors.
🔹 Chemical Price Trend Overview
Key functional additives—such as wet-strength resins, dry-strength agents, and retention aids—have seen divergent pricing patterns. The average price of PAE wet-strength resins rose by 3–5% quarter-over-quarter due to tighter supply of epichlorohydrin and rising environmental compliance costs. In contrast, dry-strength agents, especially cationic starch and polyacrylamide products, remained relatively stable, buoyed by steady demand and improved production efficiency in Asia.
Meanwhile, the cost of sizing agents like AKD wax has shown mild volatility, influenced by palm oil derivative price swings. The market also saw a notable uptick in demand for fluorine-free oil-resistant agents, especially in Europe and North America, supporting stronger pricing momentum for silicone-based systems.
🔹 Regional Insights
- China: Localized overcapacity in commodity chemicals helped offset cost increases in specialty additives. Export prices remained competitive despite currency fluctuations.
- Europe: Regulatory pressure on AOX and VOC content continues to shift demand toward cleaner, low-residue chemistries—supporting price premiums for 2nd- and 3rd-generation wet-strength solutions.
- Middle East & Africa: Import dependence and logistics constraints contributed to rising prices across the board.
🔹 What Buyers Should Know
The overall chemical price trend is expected to stay firm in Q3, especially for performance-critical additives with environmental certifications. Paper producers are advised to secure supply through mid-term contracts, monitor DCP/MCPD compliance in wet-strength products, and stay alert to potential disruptions in upstream chemical intermediates.
As the industry leans further into sustainable production and regulatory compliance, strategic sourcing and proactive cost management will become key for maintaining competitiveness in the evolving paper chemicals market.
