Commodities
Cellulose Fiber Market Size to Grow by USD 15,353.68 million from 2022 to 2027; the growing demand for cellulose fiber products drives the market – Technavio
NEW YORK, June 25, 2023 /PRNewswire/ — The cellulose fiber market size is forecast to increase by USD 15,353.68 million from 2022 to 2027, at a CAGR of 9.18%, according to the recent market study by Technavio. The growth of the market will be driven by the growing demand from the textile industry, the environment-friendly properties of cellulose fibers, and rising disposable income coupled with rapidly changing fashion trends. Charts & data tables about market and segment sizes for a historic period of five (2017-2021) years have been covered in this report. Download The Sample Report
Technavio has extensively analyzed 15 major vendors, including Aditya Birla Management Corp. Pvt. Ltd., Celanese Corp., Celotech Chemical Co. Ltd., CFF GmbH and Co. KG, Daicel Corp., Eastman Chemical Co., Formosa Plastics Corp., Fulida Group Holding Co. Ltd., Indorama Ventures Public Co. Ltd., International Paper Co., JELU WERK J. Ehrler GmbH and Co. KG, Kelheim Fibers GmbH, Lenzing AG, Mitsubishi Chemical Corp., Rayonier Advanced Materials Inc., RGE Pte Ltd., Sappi Ltd., Sateri Shanghai Ltd., and Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd.Get a holistic overview of the Cellulose Fiber Market from industry experts to evaluate and develop growth strategies. Download the SampleKey Benefits for Industry Players & Stakeholders – The report offers information on the criticality of vendor inputs, including R&D, CAPEX, and technology.It also provides detailed analyses of the market’s competitive landscape and vendors’ product offerings.The report also provides a qualitative and quantitative analysis of vendors to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.Expand operations in the future – To get requisite details, ask for a custom report.Cellulose Fiber Market- Segment OverviewThis report extensively covers market segmentation by application (apparel, industrial, hygiene, and others), type (synthetic and natural), and geography (APAC, Europe, North America, Middle East and Africa, and South America).The market share growth by the apparel segment will be significant during the forecast period. Cellulose fibers used in the textile industry incorporate natural (cotton, hemp, and linen) and manufactured (viscose, rayon, Tencel, lyocell, and modal) materials. Cellulose-fiber-based textiles have special properties, such as moisture-absorbing features. The capacity of cellulose fibers to absorb water is far better than that of traditional cotton. Dresses made from cellulose fiber are soft and smooth. The industry is majorly focusing on a sustainable strategy to lower its impact on the environment. For instance, nitrocellulose, which is an innovative technology for the production and processing of cellulose extracted from algae, fungi, invertebrates, and bacteria, has the potential to lead to changes in the global cellulose industry and offer an environmentally sustainable alternative to plant-based cellulose materials. Therefore, such factors will improve the adoption of cellulose fiber in the textile industry during the forecast period.To get detailed insights about inclusions and exclusions, buy the report Cellulose Fiber Market – Market dynamicsLeading drivers – The increasing demand for cellulose fiber products is the major factor notably driving the global cellulose fiber market growth. Due to their excellent comfort and strength and silky luster, they are used to produce textiles. Further, cellulose fiber delivers heat resistance and hygroscopicity to textiles. Clothes made with cellulose fiber are soft and smooth. However, they are used in the production of garments, apparel, and medical dressings. Generally, natural fibers are used in garments, apparel, construction fabrics, medical dressings, and automotive interiors. The growing use of natural fibers, such as cotton, hemp, and linen will boost demand for textiles during the forecast period.Key trends -Growing environmental awareness and social concerns are key trends influencing the Cellulose Fiber Market. The adverse impact on the environment has increased the need to develop green and sustainable approaches in the textile industry. Due to the rapid growth in population and the increase in the consumption of textile fibers, new sustainable raw materials and processes must be found. Thus, cellulose fibers are being used to replace petrochemical fibers owing to their environment-friendly and universal nature. However, due to their environment-friendly nature, sustainable cellulose sources, such as bacterial nanocellulose, will witness high adoption in the textile industry. Therefore, such factors will drive market growth during the forecast period.Major Challenges The stringent standards and guidelines imposed by regulatory bodies are a major challenge that may impede the global cellulose fiber market growth. The Environmental Protection Agency (EPA) and the Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) Regulation in the EU impose strict regulations on the use of cellulose fibers. Sustainable biodegradation of cellulose fibers is crucial for composting after the end of a product’s lifecycle. The rigid guidelines and standards on the use of cellulose acetate, including in food packaging applications, will hinder market growth during the forecast period.What are the key data covered in this Cellulose Fiber Market report?CAGR of the market during the forecast periodDetailed information on factors that will drive the growth of the cellulose fiber market between 2023 and 2027Precise estimation of the cellulose fiber market size and its contribution to the market in focus on the parent marketAccurate predictions about upcoming trends and changes in consumer behaviourGrowth of the cellulose fiber market across APAC, Europe, North America, Middle East and Africa, and South AmericaA thorough analysis of the market’s competitive landscape and detailed information about vendorsComprehensive analysis of factors that will challenge the growth of cellulose fiber market vendorsGain instant access to 17,000+ market research reports. Technavio’s SUBSCRIPTION platformRelated Reports: The global carboxymethyl cellulose (CMC) Market size is estimated to grow by USD 509.15 million and the size of the market is forecast to increase at a CAGR of 5.62% between 2022 and 2027. This report extensively covers market segmentation by application (food & beverages, pharmaceutical, and cosmetics, oil, and gas, paper, and others) and geography (APAC, North America, Europe, Middle East and Africa, and South America). The new product launches in the carboxymethyl cellulose market will notably drive market growth.The aramid fiber market size is estimated to grow at a CAGR of 3.85% between 2022 and 2027. The market size is forecast to increase by USD 1,191.78 million. report extensively covers market segmentation by product (para-aramid and meta-aramid), end-user (automotive, aerospace and defence, electrical and electronics, and others), and geography (Europe, North America, APAC, South America, and Middle East and Africa). The miniaturization of electronic components is notably driving market growth.Cellulose Fiber Market Scope
Report Coverage
Details
Base year
2022
Historic period
2017-2021
Forecast period
2023-2027
Growth momentum & CAGR
Accelerate at a CAGR of 9.18%
Market growth 2023-2027
USD15,353.68 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
8.53
Regional analysis
APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution
APAC at 40%
Key countries
US, Canada, China, Germany, and France
Competitive landscape
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled
Aditya Birla Management Corp. Pvt. Ltd., Celanese Corp., Celotech Chemical Co. Ltd., CFF GmbH and Co. KG, Daicel Corp., Eastman Chemical Co., Formosa Plastics Corp., Fulida Group Holding Co. Ltd., Indorama Ventures Public Co. Ltd., International Paper Co., JELU WERK J. Ehrler GmbH and Co. KG, Kelheim Fibers GmbH, Lenzing AG, Mitsubishi Chemical Corp., Rayonier Advanced Materials Inc., RGE Pte Ltd., Sappi Ltd., Sateri Shanghai Ltd., and Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd.
Market dynamics
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
Table of contents1 Executive Summary1.1 Market overview Exhibit 01: Executive Summary – Chart on Market OverviewExhibit 02: Executive Summary – Data Table on Market OverviewExhibit 03: Executive Summary – Chart on Global Market CharacteristicsExhibit 04: Executive Summary – Chart on Market by GeographyExhibit 05: Executive Summary – Chart on Market Segmentation by ApplicationExhibit 06: Executive Summary – Chart on Market Segmentation by TypeExhibit 07: Executive Summary – Chart on Incremental GrowthExhibit 08: Executive Summary – Data Table on Incremental GrowthExhibit 09: Executive Summary – Chart on Vendor Market Positioning2 Market Landscape2.1 Market ecosystem Exhibit 10: Parent marketExhibit 11: Market Characteristics3 Market Sizing3.1 Market definition Exhibit 12: Offerings of vendors included in the market definition3.2 Market segment analysis Exhibit 13: Market segments3.4 Market outlook: Forecast for 2022-2027Exhibit 14: Chart on Global – Market size and forecast 2022-2027 ($ million)Exhibit 15: Data Table on Global – Market size and forecast 2022-2027 ($ million)Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)4 Historic Market Size4.1 Global cellulose fiber market 2017 – 2021Exhibit 18: Historic Market Size – Data Table on Global cellulose fiber market 2017 – 2021 ($ million)4.2 Application Segment Analysis 2017 – 2021Exhibit 19: Historic Market Size – Application Segment 2017 – 2021 ($ million)4.3 Type Segment Analysis 2017 – 2021 Exhibit 20: Historic Market Size – Type Segment 2017 – 2021 ($ million)4.4 Geography Segment Analysis 2017 – 2021Exhibit 21: Historic Market Size – Geography Segment 2017 – 2021 ($ million)4.5 Country Segment Analysis 2017 – 2021Exhibit 22: Historic Market Size – Country Segment 2017 – 2021 ($ million)5 Five Forces Analysis5.1 Five forces summary Exhibit 23: Five forces analysis – Comparison between2022 and 20275.2 Bargaining power of buyers Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 20275.3 Bargaining power of suppliers Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 20275.4 Threat of new entrants Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 20275.5 Threat of substitutes Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 20275.6 Threat of rivalry Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 20275.7 Market condition Exhibit 29: Chart on Market condition – Five forces 2022 and 20276 Market Segmentation by Application6.1 Market segments Exhibit 30: Chart on Application – Market share 2022-2027 (%)Exhibit 31: Data Table on Application – Market share 2022-2027 (%)6.2 Comparison by Application Exhibit 32: Chart on Comparison by ApplicationExhibit 33: Data Table on Comparison by Application6.3 Apparel – Market size and forecast 2022-2027Exhibit 34: Chart on Apparel – Market size and forecast 2022-2027 ($ million)Exhibit 35: Data Table on Apparel – Market size and forecast 2022-2027 ($ million)Exhibit 36: Chart on Apparel – Year-over-year growth 2022-2027 (%)Exhibit 37: Data Table on Apparel – Year-over-year growth 2022-2027 (%)6.4 Industrial – Market size and forecast 2022-2027Exhibit 38: Chart on Industrial – Market size and forecast 2022-2027 ($ million)Exhibit 39: Data Table on Industrial – Market size and forecast 2022-2027 ($ million)Exhibit 40: Chart on Industrial – Year-over-year growth 2022-2027 (%)Exhibit 41: Data Table on Industrial – Year-over-year growth 2022-2027 (%)6.5 Hygiene – Market size and forecast 2022-2027Exhibit 42: Chart on Hygiene – Market size and forecast 2022-2027 ($ million)Exhibit 43: Data Table on Hygiene – Market size and forecast 2022-2027 ($ million)Exhibit 44: Chart on Hygiene – Year-over-year growth 2022-2027 (%)Exhibit 45: Data Table on Hygiene – Year-over-year growth 2022-2027 (%)6.6 Others – Market size and forecast 2022-2027Exhibit 46: Chart on Others – Market size and forecast 2022-2027 ($ million)Exhibit 47: Data Table on Others – Market size and forecast 2022-2027 ($ million)Exhibit 48: Chart on Others – Year-over-year growth 2022-2027 (%)Exhibit 49: Data Table on Others – Year-over-year growth 2022-2027 (%)6.7 Market opportunity by Application Exhibit 50: Market opportunity by Application ($ million)7 Market Segmentation by Type7.1 Market segments Exhibit 51: Chart on Type – Market share 2022-2027 (%)Exhibit 52: Data Table on Type – Market share 2022-2027 (%)7.2 Comparison by Type Exhibit 53: Chart on Comparison by TypeExhibit 54: Data Table on Comparison by Type7.3 Synthetic – Market size and forecast 2022-2027Exhibit 55: Chart on Synthetic – Market size and forecast 2022-2027 ($ million)Exhibit 56: Data Table on Synthetic – Market size and forecast 2022-2027 ($ million)Exhibit 57: Chart on Synthetic – Year-over-year growth 2022-2027 (%)Exhibit 58: Data Table on Synthetic – Year-over-year growth 2022-2027 (%)7.4 Natural – Market size and forecast 2022-2027Exhibit 59: Chart on Natural – Market size and forecast 2022-2027 ($ million)Exhibit 60: Data Table on Natural – Market size and forecast 2022-2027 ($ million)Exhibit 61: Chart on Natural – Year-over-year growth 2022-2027 (%)Exhibit 62: Data Table on Natural – Year-over-year growth 2022-2027 (%)7.5 Market opportunity by Type Exhibit 63: Market opportunity by Type ($ million)8 Customer Landscape8.1 Customer landscape overview Exhibit 64: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria9 Geographic Landscape9.1 Geographic segmentation Exhibit 65: Chart on Market share by geography 2022-2027 (%)Exhibit 66: Data Table on Market share by geography 2022-2027 (%)9.2 Geographic comparison Exhibit 67: Chart on Geographic comparisonExhibit 68: Data Table on Geographic comparison9.3 APAC – Market size and forecast 2022-2027Exhibit 69: Chart on APAC – Market size and forecast 2022-2027 ($ million)Exhibit 70: Data Table on APAC – Market size and forecast 2022-2027 ($ million)Exhibit 71: Chart on APAC – Year-over-year growth 2022-2027 (%)Exhibit 72: Data Table on APAC – Year-over-year growth 2022-2027 (%)9.4 Europe – Market size and forecast 2022-2027Exhibit 73: Chart on Europe – Market size and forecast 2022-2027 ($ million)Exhibit 74: Data Table on Europe – Market size and forecast 2022-2027 ($ million)Exhibit 75: Chart on Europe – Year-over-year growth 2022-2027 (%)Exhibit 76: Data Table on Europe – Year-over-year growth 2022-2027 (%)9.5 North America – Market size and forecast 2022-2027Exhibit 77: Chart on North America – Market size and forecast 2022-2027 ($ million)Exhibit 78: Data Table on North America – Market size and forecast 2022-2027 ($ million)Exhibit 79: Chart on North America – Year-over-year growth 2022-2027 (%)Exhibit 80: Data Table on North America – Year-over-year growth 2022-2027 (%)9.6 Middle East and Africa – Market size and forecast 2022-2027 Exhibit 81: Chart on Middle East and Africa – Market size and forecast 2022-2027 ($ million)Exhibit 82: Data Table on Middle East and Africa – Market size and forecast 2022-2027 ($ million)Exhibit 83: Chart on Middle East and Africa – Year-over-year growth 2022-2027 (%)Exhibit 84: Data Table on Middle East and Africa – Year-over-year growth 2022-2027 (%)9.7 South America – Market size and forecast 2022-2027Exhibit 85: Chart on South America – Market size and forecast 2022-2027 ($ million)Exhibit 86: Data Table on South America – Market size and forecast 2022-2027 ($ million)Exhibit 87: Chart on South America – Year-over-year growth 2022-2027 (%)Exhibit 88: Data Table on South America – Year-over-year growth 2022-2027 (%)9.8 China – Market size and forecast 2022-2027Exhibit 89: Chart on China – Market size and forecast 2022-2027 ($ million)Exhibit 90: Data Table on China – Market size and forecast 2022-2027 ($ million)Exhibit 91: Chart on China – Year-over-year growth 2022-2027 (%)Exhibit 92: Data Table on China – Year-over-year growth 2022-2027 (%)9.9 Germany – Market size and forecast 2022-2027Exhibit 93: Chart on Germany – Market size and forecast 2022-2027 ($ million)Exhibit 94: Data Table on Germany – Market size and forecast 2022-2027 ($ million)Exhibit 95: Chart on Germany – Year-over-year growth 2022-2027 (%)Exhibit 96: Data Table on Germany – Year-over-year growth 2022-2027 (%)9.10 US – Market size and forecast 2022-2027Exhibit 97: Chart on US – Market size and forecast 2022-2027 ($ million)Exhibit 98: Data Table on US – Market size and forecast 2022-2027 ($ million)Exhibit 99: Chart on US – Year-over-year growth 2022-2027 (%)Exhibit 100: Data Table on US – Year-over-year growth 2022-2027 (%)9.11 France – Market size and forecast 2022-2027Exhibit 101: Chart on France – Market size and forecast 2022-2027 ($ million)Exhibit 102: Data Table on France – Market size and forecast 2022-2027 ($ million)Exhibit 103: Chart on France – Year-over-year growth 2022-2027 (%)Exhibit 104: Data Table on France – Year-over-year growth 2022-2027 (%)9.12 Canada – Market size and forecast 2022-2027Exhibit 105: Chart on Canada – Market size and forecast 2022-2027 ($ million)Exhibit 106: Data Table on Canada – Market size and forecast 2022-2027 ($ million)Exhibit 107: Chart on Canada – Year-over-year growth 2022-2027 (%)Exhibit 108: Data Table on Canada – Year-over-year growth 2022-2027 (%)9.13 Market opportunity by geography Exhibit 109: Market opportunity by geography ($ million)10 Drivers, Challenges, and Trends10.3 Impact of drivers and challenges Exhibit 110: Impact of drivers and challenges in 2022 and 202711 Vendor Landscape11.2 Vendor landscape Exhibit 111: Overview on Criticality of inputs and Factors of differentiation11.3 Landscape disruption Exhibit 112: Overview on factors of disruption11.4 Industry risks Exhibit 113: Impact of key risks on business12 Vendor Analysis12.1 Vendors covered Exhibit 114: Vendors covered12.2 Market positioning of vendors Exhibit 115: Matrix on vendor position and classification12.3 Aditya Birla Management Corp. Pvt. Ltd.Exhibit 116: Aditya Birla Management Corp. Pvt. Ltd. – OverviewExhibit 117: Aditya Birla Management Corp. Pvt. Ltd. – Product / ServiceExhibit 118: Aditya Birla Management Corp. Pvt. Ltd. – Key offerings12.4 Celanese Corp. Exhibit 119: Celanese Corp. – OverviewExhibit 120: Celanese Corp. – Business segmentsExhibit 121: Celanese Corp. – Key offeringsExhibit 122: Celanese Corp. – Segment focus12.5 Celotech Chemical Co. Ltd. Exhibit 123: Celotech Chemical Co. Ltd. – OverviewExhibit 124: Celotech Chemical Co. Ltd. – Product / ServiceExhibit 125: Celotech Chemical Co. Ltd. – Key offerings12.6 CFF GmbH and Co. KG Exhibit 126: CFF GmbH and Co. KG – OverviewExhibit 127: CFF GmbH and Co. KG – Product / ServiceExhibit 128: CFF GmbH and Co. KG – Key offerings12.7 Daicel Corp. Exhibit 129: Daicel Corp. – OverviewExhibit 130: Daicel Corp. – Business segmentsExhibit 131: Daicel Corp. – Key newsExhibit 132: Daicel Corp. – Key offeringsExhibit 133: Daicel Corp. – Segment focus12.8 Eastman Chemical Co. Exhibit 134: Eastman Chemical Co. – OverviewExhibit 135: Eastman Chemical Co. – Business segmentsExhibit 136: Eastman Chemical Co. – Key offeringsExhibit 137: Eastman Chemical Co. – Segment focus12.9 Formosa Plastics Corp. Exhibit 138: Formosa Plastics Corp. – OverviewExhibit 139: Formosa Plastics Corp. – Product / ServiceExhibit 140: Formosa Plastics Corp. – Key offerings12.10 Fulida Group Holding Co. Ltd. Exhibit 141: Fulida Group Holding Co. Ltd. – OverviewExhibit 142: Fulida Group Holding Co. Ltd. – Product / ServiceExhibit 143: Fulida Group Holding Co. Ltd. – Key offerings12.11 Indorama Ventures Public Co. Ltd.Exhibit 144: Indorama Ventures Public Co. Ltd. – OverviewExhibit 145: Indorama Ventures Public Co. Ltd. – Business segmentsExhibit 146: Indorama Ventures Public Co. Ltd. – Key offeringsExhibit 147: Indorama Ventures Public Co. Ltd. – Segment focus12.12 JELU WERK J. Ehrler GmbH and Co. KGExhibit 148: JELU WERK J. Ehrler GmbH and Co. KG – OverviewExhibit 149: JELU WERK J. Ehrler GmbH and Co. KG – Product / ServiceExhibit 150: JELU WERK J. Ehrler GmbH and Co. KG – Key offerings12.13 Kelheim Fibers GmbH Exhibit 151: Kelheim Fibers GmbH – OverviewExhibit 152: Kelheim Fibers GmbH – Product / ServiceExhibit 153: Kelheim Fibers GmbH – Key offerings12.14 Lenzing AG Exhibit 154: Lenzing AG – OverviewExhibit 155: Lenzing AG – Business segmentsExhibit 156: Lenzing AG – Key newsExhibit 157: Lenzing AG – Key offeringsExhibit 158: Lenzing AG – Segment focus12.15 Rayonier Advanced Materials Inc. Exhibit 159: Rayonier Advanced Materials Inc. – OverviewExhibit 160: Rayonier Advanced Materials Inc. – Product / ServiceExhibit 161: Rayonier Advanced Materials Inc. – Key offerings12.16 RGE Pte Ltd. Exhibit 162: RGE Pte Ltd. – OverviewExhibit 163: RGE Pte Ltd. – Product / ServiceExhibit 164: RGE Pte Ltd. – Key offerings12.17 Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd. Exhibit 165: Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd. – OverviewExhibit 166: Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd. – Product / ServiceExhibit 167: Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd. – Key offerings13 Appendix13.1 Scope of the report 13.2 Inclusions and exclusions checklistExhibit 168: Inclusions checklistExhibit 169: Exclusions checklist13.3 Currency conversion rates for US$ Exhibit 170: Currency conversion rates for US$13.4 Research methodology Exhibit 171: Research methodologyExhibit 172: Validation techniques employed for market sizingExhibit 173: Information sources13.5 List of abbreviations Exhibit 174: List of abbreviationsAbout UsTechnavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.ContactTechnavio ResearchJesse MaidaMedia & Marketing ExecutiveUS: +1 844 364 1100UK: +44 203 893 3200Email: media@technavio.comWebsite: www.technavio.com
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Commodities
Oil prices steady; traders digest mixed US inventories, weak China data
Investing.com– Oil prices steadied Thursday as traders digested data showing an unexpected increase in US product inventories, while weak economic data from top importer China weighed.
At 05:25 ET (10:25 GMT), expiring in March gained 0.1% to $76.25 a barrel, while rose 0.1% to $73.37 a barrel.
The crude benchmarks had slumped more than 1% on Wednesday, but trading ranges, and volumes, are likely to be limited throughout Thursday with the US market closed to honor former President Jimmy Carter, ahead of a state funeral later in the session.
China inflation muted in December
Chinese inflation, as measured by the , remained unchanged in December, while the shrank for a 27th consecutive month, data showed on Thursday.
The reading pointed to limited improvement in China’s prolonged disinflationary trend, even as the government doled out its most aggressive round of stimulus measures yet through late-2024.
China is the world’s biggest oil importer, and has been a key source of anxiety for crude markets. Traders fear that weak economic growth in the country will eat into oil demand.
The country is also facing potential economic headwinds from the incoming Donald Trump administration in the US, as Trump has vowed to impose steep trade tariffs on Beijing.
US oil product inventories rise sharply
U.S. gasoline and distillate inventories grew substantially more than expected in the week to January 3, government data showed on Wednesday.
inventories grew 6.3 million barrels against expectations of 0.5 mb, while grew 6.1 mb on expectations of 0.5 mb.
Overall crude also shrank less than expected, at 0.96 mb, against expectations of 1.8 mb.
The build in product inventories marked an eighth straight week of outsized product builds, and spurred concerns that demand in the world’s biggest fuel consumer was cooling.
While cold weather in the country spurred some demand for heating, it also disrupted holiday travel in several areas.
EIA data also showed that US imports from Canada rose last week to the highest on record, ahead of incoming U.S. president Donald Trump’s plans to levy a 25% tariff on Canadian imports.
Canada has been the top source of U.S. oil imports for many years, and supplied more than half of the total U.S. crude imports in 2023.
Strength in the also weighed on crude prices, as the greenback shot back up to more than two-year highs on hawkish signals from the Federal Reserve.
A strong dollar pressures oil demand by making crude more expensive for international buyers.
(Ambar Warrick contributed to this article.)
Commodities
Trump’s possible tariffs could put downward pressure on oil prices – RBC
Investing.com – President-elect Donald Trump’s plan to implement sweeping import tariffs during his second term in the White House is potentially the “most bearish” policy development for the energy sector this year, according to analysts at RBC Capital Markets.
Trump, who is set to come to power in less than two weeks, has vowed to impose tariffs of as much as 10% on global imports into the US and 60% on items coming from China. He has also pledged to slap a 25% surcharge on products from Canada and Mexico.
Economists have flagged that the proposal would not only rattle global trade activity, but also threaten to reignite inflationary pressures and spark possible retaliation.
The uncertainty in markets was heightened on Wednesday after CNN reported that Trump is mulling declaring a national economic emergency in order to provide the legal underpinning for the tariffs. Earlier this week, Trump also denied a separate report that his team was mulling scaling back the levies to cover only critical goods.
In a note to clients on Thursday, analysts at RBC led by Helima Croft said that while the ultimate scope of the tariffs remains unclear, the headline duties on China could soften demand in the country and place downward pressure on oil prices. China is the world’s largest crude importer.
Business leaders with significant ties to China may advise Trump to stay away from instituting strict tariffs on the country, Croft predicted.
“We have also heard a view in Washington that President Trump could be amenable to a deal with China if Beijing offered to make large headline purchases of US goods, such as aircraft or even US [liquefied natural gas] imports,” Croft wrote.
“Beijing could also potentially seek to trade a reduction in Iranian crude imports for a tariff reprieve.”
However, Croft flagged that the overall market effect of the tariffs is still “challenging to forecast” because the Trump administration — unlike a prior round of trade tensions in 2018 — will have to weight the impact of the policies with broader macroeconomic worries “still front of mind for many in Washington”.
(Reuters contributed reporting.)
Commodities
Gold prices edge higher; demand boosted by Trump-inspired uncertainty
Investing.com– Gold prices edged higher Thursday, continuing the recent gains, as heightened uncertainty over a hawkish Federal Reserve and President-elect Donald Trump’s plan for trade tariffs fueled some safe haven demand.
At 06:15 ET (11:15 GMT), {68|Spot gold}} rose 0.4% to $2,683.84 an ounce, while expiring in February rose 0.3% to $2,668.60 an ounce.
Trading activity is likely to be limited Thursday, with US traders on holiday to honor former President Jimmy Carter, with a state funeral due later in the session.
Safe haven demand on economic uncertainty
Bullion prices benefited from some safe haven demand this week, as uncertainty over Trump’s trade and immigration policies dented risk appetite.
A CNN report said Trump could declare a national economic emergency to legally justify his plans to impose universal trade tariffs.
Concerns over Trump’s policies also came into focus after the of the Fed’s December meeting showed policymakers expressing some concerns over sticky inflation.
Specifically, Fed officials were growing concerned that Trump’s expansionary and protectionist policies could underpin inflation in the long term.
The minutes also largely reiterated the Fed’s plans to cut interest rates at a slower pace in 2025, after the central bank effectively halved its projected rate cuts to two from four in 2025.
Treasury yields shot up after the Fed’s minutes, as did the dollar.
Higher for longer rates bode poorly for non-yielding assets such as metals, given that they increase the opportunity cost of investing in the sector.
Other precious metals were edged higher Thursday. fell 0.1% to $983.85 an ounce, while rose 0.8% to $30.930 an ounce.
Copper rises as weak China inflation fuels stimulus hopes
Benchmark on the London Metal Exchange rose 0.7% to $9,093.0 a ton, while March rose 1.2% to $4.3115 a pound.
Chinese were flat in December, while shrank for a 27th consecutive month, indicating little improvement in disinflation.
Inflation remained weak even as Beijing doled out its most aggressive round of stimulus measures through late-2024.
But Thursday’s inflation data fueled increased bets that Beijing will do more to shore up Chinese growth, especially on the fiscal front.
(Ambar Warrick contributed to this article.)
Among industrial metals, copper prices firmed as weak inflation data from top importer China spurred bets on more stimulus measures from Beijing.
But metal markets remained under pressure from strength in the dollar, which came back in sight of over two-year highs on hawkish signals from the Fed.
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