The global market of Nicotine Polacrilex has observed contrasting trend in September. The prices have decreased in major importing hubs and increased in the USA market. The strategic pricing by Nicotine Polacrilex suppliers have kept the overall prices in a declining trend. The inventory management by the buyers and leftover stock from the earlier production cycles have shifted the downstream demand which produced uneven outcomes in different regional market. The suppliers in India have defended their market amid a surplus after reduced orders from major import market. The suppliers have offered price concessions to clear their warehouses and importers have navigated through the diverging trends. ChemAnalyst after analysing the market driving factors expects that the Nicotine Polacrilex prices will likely decline further in the near term because the inventories will remain sufficiently covered across the value chain. The market participants can mitigate any downside risk by adopting a proactive approach and utilizing strategic forecasting during this period of anticipated price adjustment.
The global market of Nicotine Polacrilex has observed contrasting trend in September. The prices have decreased in major importing hubs and increased in the USA market. The Indian market is a major supplier of Nicotine Polacrilex which drove the trends across different market in September. The reduced procurement from a tariff-imposition by the US have resulted in lower offtake which created an oversupply situation that pushed the suppliers to trim their offer to maintain shipment momentum. The domestic buyers have prioritized inventory optimization over expansion. They maintained short-cycle stocks and avoided broad restocking which compounded the surplus pressure. The import market of USA has experienced tighter available volumes because its usual sourcing interest was dampened by the tariff uncertainty which created a localized scarcity and exerted an upward pressure on the landed prices. The sentiment of Nicotine Polacrilex procurers and existing inventory positions were the primary market driving factors of the month.
The price of Nicotine Polacrilex has increased to USD 114,000/MT in the USA (CFR Houston) and marked an increase of 4.59% as importers were competing for relatively scarce available lots which tightened their inventories. The landed cost has eased in China (CFR Shanghai) to USD 107,000/MT with a decline of 0.93% in the market value of Nicotine Polacrilex. The Chinese importers were able to leverage the softer offers from the Indian suppliers who were facing domestic surplus due to reduced export enquiries. The price of Nicotine Polacrilex was assessed at USD 102,985/MT in the domestic market of India (Ex Vadodara) and marked a decline of 1.16%. The Nicotine Polacrilex suppliers have lowered their offers to accelerate the turnover and avoid prolonged inventory build-up.
ChemAnalyst after analysing the market driving factors expects that the Nicotine Polacrilex prices will likely decline further in the near term because the inventories will remain sufficiently covered across the value chain. The Nicotine Polacrilex buyers and procurers will likely consume the existing stocks rather than expanding their inventory reserves. The suppliers will continue to prioritize clearing the excess inventory through selective price concessions and the downstream users will align their purchase with the confirmed orders which will keep speculative buying to a minimum. The seasonal lull between post-monsoon activity and pre-holiday production planning will also temper Nicotine Polacrilex procurement. The current wait-and-watch behaviour of the market stakeholders will likely keep the prices in a downtrend without any sudden surge in the end-market demand.
ChemAnalyst further suggests the suppliers and buyers of Nicotine Polacrilex market to maintain measured caution. The suppliers should monitor the downstream orders and offer targeted short-term commercial packages to move their surplus stocks without undermining the long-term price structure. The Nicotine Polacrilex buyers should use the current environment and negotiate favourable short-term contracts with the confirmed demand and avoid over-stocking. The market stakeholders should record tariff impacts as policy shifts can re-route the demand and can likely create inventory imbalances. The market players of Nicotine Polacrilex should maintain conservative inventory buffers and keep the communications transparent to navigate through the current volatile dynamics of the market. The market participants can mitigate any downside risk and position themselves to capture opportunities when demand visibility improves by adopting a proactive approach and utilizing strategic forecasting during this period of anticipated price adjustment.
