Quarterly Update on Global Pyridine Market
For the Quarter Ending June 2021
During the second quarter of 2021, supply in the North American region improved in comparison to the previous quarter as the industrial activities resumed after a prolonged turnaround. However, some constraint in the supplies remained as suppliers were focused to clear the backlog orders that were piled up since Q1 2021. Demand outlook surged throughout the quarter as the offtakes remained consistent from the solvent industries. As a ripple effect of exceptional demand outlook in the second quarter, prices of Pyridine remained buoyed throughout the second quarter with prices in June reaching USD 6850 per tonne at FOB Ohio.
In the Asia Pacific region, supplies remained balanced in the second half of Q2 2021. Offtakes were sluggish as the industrial activities were subdued in India amidst the rising COVID cases. Hence buyers from the downstream manufacturing industries were reluctant to procure in bulk due to the hovering uncertainties. Jubilant life science exported 161 tonnes of Pyridine and salts derivatives in the second quarter. Offtakes remained consistent from the pharmaceutical industry in the regional market, however due to the reduced demand, pricing trend stabilize in India with Ex-Work Mumbai pries in June being assessed at USD 3207 per tonne.
Overall, the supplies outlook in the European region remains tight in the second quarter of 2021, as several manufacturers were still struggling to improve the production rate due to lack availability of raw material. Besides, due to the Suez Canal blockage the shipment from the Asia Pacific region delayed by a week. Demand bolstered from the downstream solvent industries as the enquiries from the end-use of rubber and adhesives industries improved. As a ripple effect the prices of Pyridine in the European region surged throughout the quarter.
For the Quarter Ending March 2021
US Pyridine market witnessed supply constraints during the first quarter of 2021, due to the tightness in upstream market and unavailability of feedstock, as the region was hard hit by freezing weather conditions in much of central America. Demand from the downstream sectors surged due to the supply shortages throughout the quarter, followed by the surge in enquiries from the pharmaceutical sector and adhesive building & construction sector. The demand-supply gap widened amid the strong competition among the buyers caused the multifold hike in the prices of Pyridine FOB Louisiana with prices settling at USD 6805 per tonne in March.
Pyridine supplies in the Asia Pacific region market was balanced to tight during the first quarter of 2021. Major supplier plants in Middle East region were on a maintenance turnaround. Inventory levels further diminished following the limited production amid the Chinese Lunar New Year holidays. The hike in prices of key feedstocks proportionally supported the prices of Pyridine in Q1, April delivery prices were assessed at USD 3351/MT in India. Demand strengthened as the offtakes improved from the pharmaceutical sector, due to resurgence of COVID in several part of the region.
The European market remained balanced during the Q1 2021, as supplies improved with resumption of a major upstream plant after a prolonged period of turnaround. However, some constraints were witnessed as the market sentiments were impacted due to the declined imports from the US amid high shipping freights charges and bad weather conditions. Demand enquiries from the downstream sectors surged against the supply shortage, due to the rebound of automotive and construction sector and improved offtakes from the downstream segment such as pharmaceutical, adhesives and rubber industries.
For the Quarter Ending December 2020
The domestic consumption of Pyridine spiked in Asia, during the fourth quarter of 2020, following the buzz of new coronavirus across several parts in the region. As Pyridine is used as an intermediate for various APIs in pharmaceutical industry, the demand across the region witnessed an enormous surge, due to sturdy demand for medicines for boosting immunity as a preventive measure of new Coronavirus. Following the increase in export for Pyridine and its derivatives improved in India, significant domestic demand for Pyridine resulted in a two-fold spike in its price, where Pyridine prices settled at USD 3310.14 per ton in Q4 2020.
The resurgence of COVID in several countries across European region, led to an astonishing surge in API’s demand from the pharmaceutical sector. Despite of ample demand import constraints like container unavailability and essential manpower shortage implemented the supply in the region. Germany emerged as the largest importer of Pyridine and its derivatives in the European region in Q4 2020. Pyridine prices backed by the sturdy demand and import shortage witnessed a steep climb during Q4 2020.
The supplies were hampered during the first half of fourth quarter, due to plants turnaround in gulf region amid the spate of hurricanes followed by several import constraints like low container availability. Although, the supply considerably improved during the second half of Q4, as several plants resumed production after weeks long force majeure. By quarter end, the demand witnessed a continuous uptick due to the surged demand from the pharmaceuticals sector.