Indian Niacinamide Prices Surge Amid Rising Exports and Strong Personal Care Demand

Key Highlights

• Price Surge – Niacinamide prices increased by ₹5/kg this week due to strong downstream demand, with trader offers at ₹655++/kg (ex-Mumbai) and ₹650++/kg (ex-Kandla).
• Strong Supply & Expansions – Jubilant Ingrevia resumed operations at its Gujarat facility (5,000 MT annual capacity), increasing domestic production and reshaping market dynamics.
• Demand Growth – India’s annual Niacinamide demand is 15,000–15,500 MT, growing at a 6.9% CAGR, with personal care (42%) and pharmaceuticals (32%) as key segments.
• Market Outlook – Prices may stabilize soon, but potential corrections are expected as new supply enters the market. Buyers should be cautious with long-term contracts.

Niacinamide Prices Surge Amid Strong Demand & Export Growth 

• Niacinamide, also known as Nicotinamide (NAM), is a form of Vitamin B3 widely used across multiple industries.
• The price of Niacinamide has increased by ₹5/kg this week due to a rise in downstream demand.
• Trader offers were observed in the range of ₹655++ per kg ex-Mumbai and ₹650++ per kg ex-Kandla on 60-day credit terms.
• In contrast, manufacturers’ offers were slightly lower, ranging between ₹625–630++ per kg, depending on credit terms and dispatch schedules as per a buyer.
• The surge in Niacinamide prices is attributed to increased exports and rising demand for Aziderm cream, a formulation used to treat eczema and dermatitis.

Rising Demand for Aziderm Cream Drives Niacinamide Market 

• Supply remains robust, backed by increased domestic production capacities. Jubilant Ingrevia has resumed operations at its new facility in Gujarat, which has an estimated annual production capacity of 5,000 metric tons (MT). According to a bulk consumer, this expansion is expected to reshape market dynamics.
• The estimated Indian Niacinamide demand stands at 15,000–15,500 MT per annum, with a CAGR of 6.9%. Domestic production is estimated at 20,000–21,000 MT per annum, while exports average between 4,000–6,000 MT per annum.
• Key Downstream Consumption Segments
  1. Personal care: Accounts for nearly 42% of total Niacinamide demand, mainly in beauty and skincare products.
  2. Multivitamins: Represents 18% of the demand.
  3. Aziderm creams: Constitutes around 8% of the demand.
  4. Pharmaceuticals (Psoriasis, Atopic Dermatitis, Neuropathy, Cholesterol-lowering drugs): Collectively account for 32% of Indian demand.
• Major Niacinamide Manufacturers & Their Capacities
  1. Western Drugs Ltd: 7,000 MT per annum
  2. Lasons India: 6,000 MT per annum
  3. Jubilant Life Sciences: 5,000 MT per annum
  4. Veer Chemie & Aromatics: 3,900 MT per annum
• With Jubilant Life Sciences expanding its production capacity, additional supply is expected to enter the domestic market. While strong downstream demand is currently supporting prices, a price correction may occur once the seasonal demand from the personal care segment subsides, as noted by a market participant.

Market News: Potential Price Corrections Ahead

1. WTI crude oil prices rose by 0.91%, reaching $72.96 per barrel.
2. Natural gas prices increased by 1.02%, trading at $3.48/MMBtu.
3. FOB Middle East ammonia prices dropped by $6, settling at $339/MT.

Expert Opinion: Robust Demand Supports Niacinamide Prices

• Anticipates Niacinamide prices to remain stable this week, supported by strong demand from the personal care segment. 
• However, the addition of new domestic production capacity from Jubilant is expected to boost supply, potentially leading to price corrections in the near term.
• Buyers are advised to remain cautious while finalizing long-term contracts.