During early December 2025, Nitrocellulose prices in Asia were stable low. However, Prices continued to fall m-o-m due to a continuing increase in production, combined with weak consumption and buyer reluctance to purchase on the spot, reflecting lower levels of optimism overall.
In India, nitrocellulose prices dropped by 1.2% in November, indicating a relatively weak market. Despite stable production costs, ample availability of material and restricted purchasing demand pressured prices and continued to pressurize the market for all of November.
Supply conditions in India remained loose, as domestic producers continued operating at steady rates across major manufacturing regions. Plants ran close to normal utilization levels, ensuring sufficient spot availability. With no major shutdowns or regulatory disruptions reported, inventory levels at both producer and distributor warehouses stayed comfortable.
Sellers with large quantities of inventory were focused on clearing their inventories instead of reducing their production levels. Producers began using different pricing structures and delivery terms in order to sell their inventories, giving buyers more leverage when negotiating and further supporting the overall decline in prices.
In the month of November, feedstock nitric acid received a slight increase in price. However, this increase did not help to support nitrocellulose pricing, as there remains an excess supply of nitrocellulose available along with continued weak downstream demand, outweighing any cost-side upward pressure that would have supported an increase in the price of nitrocellulose.
Nitrocellulose demand weakened further, especially from the automotive coatings and refinish segments. According to FADA data, overall vehicle sales declined by 17.97% month on month in November 2025, reducing consumption. Packaging inks and industrial coatings also recorded lower offtake following post-festive normalization.
Procurement activity remained cautious, with buyers adopting a wait-and-see approach. Most downstream manufacturers maintained routine inventory levels and relied on hand-to-mouth purchases due to poor demand visibility and falling new orders. Export demand from India also remained weak, failing to offset domestic softness. In recent months, India’s nitrocellulose exports declined by around 22% month on month, impacted by global uncertainty and competitive pricing from suppliers such as China, which further added to domestic inventory pressure.
In China, downstream demand for nitrocellulose stayed subdued, mainly due to ongoing weakness in the construction sector. Construction activity indicators remained in contraction territory at around 49.6%, limiting consumption in construction-related coatings and industrial applications. Buyers showed little urgency to restock, keeping spot market activity muted.
New orders in China’s domestic market continued to decline, though export volumes increased due to lower prices, offering some support. In recent months, China’s nitrocellulose exports rose by about 61%, helping partially absorb excess supply.
As per the ChemAnalyst data, nitrocellulose prices are expected to remain under pressure through December. Year-end destocking is likely to lead to discounted offers from both traders and producers, while downstream buyers may continue delaying purchases in anticipation of further price declines amid weak market momentum.
