Feedstock costs remained the primary driver behind the increase in Nitro Cellulose prices. Feedstock sulphuric acid prices increased by 9.6% during June, while nitric acid prices also climbed by 4.5%, significantly raising nitration costs for manufacturers. June also marked the peak maintenance season across the chemical industry, with reduced operating rates among sulphuric acid producers due to financial losses. Several major production facilities across Asia underwent maintenance shutdowns, while delays in new capacity additions prevented fresh supply from entering the market, keeping spot inventories tight and supporting higher feedstock prices.
Demand for Nitro Cellulose remained healthy across several downstream industries. The automotive refinishing paints sector emerged as a key demand driver, supported by strong growth in passenger vehicles, commercial vehicles, two-wheelers, and tractors. Passenger vehicle sales increased by more than 24% year-on-year to approximately 400,000 units, compared with around 321,500 units in June 2025, reflecting healthy consumer demand. Continued expansion in electric vehicle and CNG vehicle adoption further supported demand for refinishing paints, maintaining positive sentiment across the Nitro Cellulose value chain.
Apart from automotive coatings, Nitro Cellulose demand from flexible packaging and printing inks also remained firm as converters increased purchases ahead of the third-quarter festival printing season.
Supply conditions remained relatively stable during June. Contractual shipments from Thailand suppliers continued without major disruption, ensuring regular product availability in the Indian market.
Market participants reported balanced inventories across distributors, while manufacturers adopted disciplined pricing strategies to offset escalating raw material expenses. Healthy downstream procurement prevented excessive inventory accumulation, allowing suppliers to maintain stronger negotiating positions throughout June. Trading activity remained active, particularly among buyers securing material ahead of seasonal demand.
The Nitro Cellulose market is expected to witness mixed price movements in the coming months. Seasonal slowdown during July through September may exert mild downward pressure on prices, while reduced export availability during October could tighten supply and support a temporary rebound. Overall, Nitro Cellulose prices will continue to be influenced by feedstock sulphuric acid and nitric acid costs, festival-driven procurement, and regional supply conditions.
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