Pyridine Prices Continue To Tumble In The USA
- 16-Aug-2022 2:19 PM
- Journalist: Rene Swann
Pyridine prices have been following downward momentum in the USA on the back of the rising inventories and muted demand. As per the latest insight, WTI Crude oil prices dropped to USD$92.09/barrel on 12th August 2022, which significantly impacted the raw material Crude coal tar value, has the other facets for the price fell in the domestic market.
Furthermore, Pyridine manufacturers consider that the weakening prices are due to the economic stagnation and ample availability of feedstock to cater for the offtakes from end-user sectors. On the other hand, some manufacturers attempt to stimulate demands slightly with the help of special offers. With numerous factors, continuing the current descending pattern may be possible until the end of the month.
In addition, pricing dynamics have continued to be troubled by weak demand fundamentals, which has led to a decline in Pyridine prices in the domestic market. Speculations about a US recession have gained traction recently as consumer purchasing sentiment has deteriorated and the inflation rate for several commodities has remained unabatedly high. Also, the primary asset of the US economy has been pharmaceutical and construction; weak demand from both has tilted the scales in favour of the US economy's lowered growth rates.
On the supply front, the US market has struggled with contradictory logistics, as interior rail hubs are causing a container backlog at Long Beach, LA, a key the US importing port. As a result, the FOB price for Pyridine is offered at USD 8055 per MT with a weekly declination of around 1.0% during the week ending 12th August.
According to the ChemAnalyst estimation, "Pyridine prices will likely follow the downward trend in the upcoming weeks on the back of soft raw material cost. At the same time, demand for Pyridine in the Agrochemical, construction and pharmaceutical sector might remain sluggish, further impacting the Pyridine cost in the US market."