For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Pyridine market exhibited a declining price trend in the US domestic market. Initially, the market sentiments were balanced amid stabilized supply and demand dynamics, and the market prices declined marginally in the region. In February and March, a considerable drop in offered quotations was registered due to gloomy demand and limited inquiries from the downstream pharmaceutical and agrochemical industries. The production capacity also plummeted in March, and manufacturing activities slumped due to tighter credit conditions. In the latter half of Q1, the demand outlook remained dampened amid growing fears of recession due to the collapse of two banks along with hiked interest rates by the central banks in the region. Thus, the overall market price of Pyridine FOB Louisiana steeled at USD 4200 at the end of Q1 2023.
APAC
The Pyridine market in the Asia Pacific region observed mixed market sentiments in the first quarter of 2023. The market prices dropped significantly throughout Q1 in the Chinese domestic due to ample inventories of the product and weaker demand from the downstream solvents, rubber, and pesticides industries in the domestic and international markets. In the South Korean market, the prices initially plummeted amid limited downstream queries and imports of low-priced goods in the region. Eventually, due to stable supply and demand dynamics, the market sentiments stabilized in mid-Q1. However, in March, the prices plunged considerably amid built-up inventories and sluggish demand from the end-use industries in the region. Meanwhile, in the Indian domestic market, the market sentiments were stable and slight improvement was observed throughout Q1 amid better availability of the product and an increased pace of new orders. Consequently, the offered quotes for Pyridine Ex-Mumbai settled at INR 4254 per ton at the end of Q1 2023.
Europe
The Pyridine market in the European region observed mixed sentiments in the first quarter of 2023. The overall prices increased slightly in the first month of Q1 amid active inquiries from the downstream pharmaceutical and agrochemical industries and regular imports of the product in the region. In the second month, the market fundamentals stabilized, and the prices slipped down slightly amid sufficient inventories and moderate downstream demand from the consumer end. However, the pricing trend turned southwards in March owing to inflationary pressure and uncertainties regarding economic conditions as the central banks raised the interest rates, and thus, the demand outlook subdued in the region. Also, the manufacturing PMI dropped this month in the European region resulting in bearish market sentiments for Pyridine.
For the Quarter Ending December 2022
North America
Prices of Pyridine have witnessed a mixed sentiment in the USA market during the fourth quarter of 2022. During the first month, prices have gained upward momentum due to the limited inventory level and bullish demand from the downstream agrochemical and other competitive industries. Meanwhile, high inflationary pressure and volatile energy prices have the other factor for the price increase. However, during the last two months of the quarter, Pyridine prices dropped due to inactive inquiries from the domestic market. In addition, production rates remained weak due to stable consumption rates in the domestic market. The cost of production remained stable as energy prices dropped. Meanwhile, cheap imports from the Asian market amid a decline in freight charges have weighed down the prices of Pyridine. In addition, bearish demand, along with sufficient material availability, forces the manufacturers to revise their price quotations.
Asia- Pacific
Pyridine prices increased in China throughout the fourth quarter of 2022 due to the supply constraint, disrupted supply chains, and improved domestic demand. Overall tighter supplies and limited inventories led to the price increase in the Chinese market. In addition, domestic production rates have improved in the wake of improved buying sentiment. On the other hand, demand from the downstream agrochemical, dyes, and other competitive industries has improved marginally in the domestic market. Meanwhile, demand from the overseas market has also been stable, while inadequate material availability has forced the manufacturer to raise their price quotation. Although, during the final quarter, Pyridine prices gained stability due to stable inquiries from the domestic and international markets while sufficient inventory was available to cater to the overall domestic demand.
Europe
Pyridine prices have shown fluctuation in the European market during the fourth quarter of 2022. During the first half of Q4, Pyridine prices increased due to volatile energy prices and high inflation in the region. In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. However, the threat of recession across Europe has dampened the demand from the downstream industries. Despite this, during mid and final of Q4, Pyridine prices have gained downward momentum due to the sufficient inventory level and subdued demand dynamics. The sharp decline in the freight cost has resulted in better availability of the imported material in the regional market. Furthermore, energy prices have stabilized, which softened the domestic production cost.
For the Quarter Ending September 2022
North America
Pyridine prices showcased slight fluctuation in the USA market during the third quarter of 2022. During July, prices showed stability with a marginal rise of around 0.4% on the back of weak to stable inquiries from the downstream agrochemical and construction sectors. The domestic cost of production was operating at limited capacities to maintain supply-demand equilibrium. However, during September, Pyridine prices dropped marginally due to the feedstock's weak cost pressure and bearish demand from the downstream industries. Meanwhile, supply dynamics were under pressure as the key exporting hub of Houston witnessed port congestion that reduced the material available in the international market. Although, weak demand from the overseas market resulted in the limited impact of restricted supply on the overall prices of Pyridine. Despite this, prices slightly rebound during September amid improving demand from the domestic market. During September, the price of Pyridine was assessed at USD 8125/MT on a FOB basis.
Asia- Pacific
Prices of Pyridine showed a mixed trend in the Asia Pacific region during the third quarter of 2022. During the initial Q3, prices dropped slightly, backed by the sufficient inventory level and stable to weak demand from the downstream industries. Also, China's manufacturing activity experienced a sharp decline during July. Although, during the mid and end of Q3, prices were raised marginally, backed by stable to weak demand from the downstream pharmaceutical, agrochemical, and allied industries. In addition, China's battle with Covid as the market activities remained under constant threat of covid related disruptions. Furthermore, Port activities were also halted due to the rise in covid cases, which led to the limited material available. As a result, prices of Pyridine FOB Shanghai were assessed at USD 6490/MT during September 2022.
Europe
Pyridine prices witnessed a slight fluctuation in the European market during the third quarter of 2022. During July, prices showed a marginal inclination of around 1.0%. High inflation, turmoil in energy prices, and bullish feedstock prices have contributed to the price increase. However, during August and September, prices declined, backed by the high inflow of cheap imports from Asian countries like Malaysia, China, Singapore, and others. Meanwhile, in Europe, domestic production remained under pressure amid the high cost of production as the energy prices drive the operating costs. Although, there is weak demand from the downstream agrochemical and dyes industries. Furthermore, the supply chain remained under pressure as Europe faced upheaval from port congestions and labor strikes. As a result, Pyridine prices dropped by 4.5% during September 2022.
The market sentiments for Pyridine in the North American region have remained stagnant during the Second quarter of 2022. In addition, the steadiness in the market occurred due to market dullness in the region. Furthermore, the primary reason for the stable prices was the volatility in the upstream crude oil value, which directly influenced the cost of feedstock Crude coal tar. Furthermore, amidst the Russia and Ukraine war and pandemic restriction in China, local manufacturers have been facing a frenzy supply to cater to domestic demand. These facets have proportionally affected the prices of Pyridine across the regional market. Overall, demand from the downstream Agrochemical sector has remained stable to weak in the regional market.
Pyridine prices showed positive market sentiments in the Asia-Pacific region during Q2 2022. Prices turned firm due to the upstream crude coal tar's appreciable rise in the supply crisis. On the other hand, demand for Pyridine in the downstream sectors remained strong since it has been utilized as the solvent in the pharmaceutical and agrochemical sectors. Furthermore, the Covid break and shutdown in several cities of China have negatively affected industrial and trading activities. Subsequently, shortage of raw materials and port congestion has the other facets of the price surge in the Chinese market.
During the quarter ending June, Pyridine prices in Europe showcased an upward trajectory backed by the upsurge in demand across the regional market. In addition, the shoot-up in upstream Crude oil value has proportionated the raw material Crude coal tar, which further affected the prices of Pyridine. Besides, many downstream industries have been attempting to maintain balance; hence, Europe's downstream market dynamics have been resilient. However, supply fundamentals continued to be imbalanced as domestic production has cut its operating rates amidst high energy costs in the European region. At the same time, import prices of the material have continued to rise due to solid demand in Agrochemical industries in the regional market coupled with a high freight charge which further triggered the price of Pyridine to follow an uptrend across the regional market.
