Bearish Demand Leads To a Drop in Pyridine Prices in the Asian Market
- 25-Jul-2022 5:02 PM
- Journalist: Yage Kwon
The Indian Pyridine market has witnessed a downward trajectory in the previous week. Reducing raw material costs and weakening demand from the downstream sectors have softened the market sentiments towards Pyridine.
The Pyridine prices were hovering around INR 293200/ton Ex- Mumbai with a weekly declination of 0.4% in the week ending July 22. Since India is among the largest producers of Pyridine, its prices have fallen amidst reduced trading activities and increased product availability in the domestic market. In addition, the weak demand from downstream sectors, including textiles industries, caused the price of Pyridine to decline.
As per the market sources, Pyridine stocks were piling up in warehouses due to multiple supply chain disruptions and low downstream demand. As the previous quarter ends, manufacturers are scrambling to sell off their remaining goods so they can start production for the following one. In order to clear out large inventories, manufacturers discount their products. As a result, the domestic market's value of Pyridine has dwindled.
On the other side, the price of Pyridine in the South Korean market has constantly been tumbling, supported by sufficient stockpiles coupled with the bearish demand. Additionally, the rising production rates among the manufacturing units also caused prices to drop across the domestic market.
Moreover, the lowering in import costs from Japan and India, significant Asia-Pacific exporters, is the cause of the reduction in Pyridine prices in the South Korean market. Besides, a decrease in demand for downstream Pyridine derivatives has also hampered market fundamentals. According to the ChemAnalyst, prices of Pyridine plunged by 0.8% in the mid-week of July.
As per ChemAnalyst analysis, "the price trend of Pyridine will likely follow the downtrend in the Asian market. On the other hand, the weakening raw materials Crude coal tar prices will likely prompt negative cost pressure on the price value chain of Pyridine and its derivatives. In the meantime, the downstream Textile and Agrochemical sector has remained sluggish amidst the ongoing monsoon season, which might offset the market sentiments toward Pyridine in the upcoming weeks."