Pyridine Market Mixed: 2-Picoline Demand Steady; 3-Picoline Weakens on Niacinamide Slowdown

Key Highlights

• Niacinamide prices dropped ₹10/kg this week on weak demand and lower 3CP costs. 
• 2-Picoline demand remains firm due to strong herbicide and pesticide consumption.
• 3-Picoline continues to soften as Niacinamide demand slows. 
• Domestic Niacinamide output rises with Jubilant’s 5,000 MT/year capacity expansion.

Pyridine and Niacinamide Price Trends

• In the domestic market, Niacinamide (Vitamin B3) prices declined by nearly ₹10/kg this week, assessed at ₹610++/kg Ex-Mumbai and ₹605++/kg Ex-Hyderabad. The price drop is attributed to weaker downstream demand and lower costs of feedstock 3-Cyano Pyridine (3CP).
• Alfa Picoline (2-Methyl Pyridine) was heard at ₹400–402++/kg, while Beta Picoline (3-Methyl Pyridine) was assessed in the ₹335–336++/kg range. Gamma Picoline (4-Methyl Pyridine) was quoted at ₹453–455++/kg Ex-Delhi.
• Week-on-week, Pyridine and its derivatives witnessed a slight price correction amid bearish market sentiment and subdued downstream buying.

Shifting Demand Across Pyridine Derivatives

• The demand for 2-Picoline remains firm, supported by steady offtake from the agrochemical sector. Key herbicides and pesticides such as Paraquat, Picloram, Clopyralid, Diquat Dibromide, and Picoxystrobin continue to witness good seasonal demand, according to a market participant.
• Conversely, demand for 3-Picoline remains weak, primarily due to reduced consumption of 3-Cyano Pyridine, a key intermediate in Niacinamide (Vitamin B3) production.
• In the Indian market, Niacinamide supply has increased as Jubilant Life Sciences recently ramped up its production capacity to 5,000 MT per annum.
• Total Pyridine demand in India is estimated at 34,000–35,000 MT per annum. The major feedstocks include 2-Methyl Pyridine, 3-Methyl Pyridine, and 4-Methyl Pyridine, which serve as key intermediates for downstream Pyridine derivatives.
• India’s Niacinamide demand is estimated at 15,000–15,500 MT annually and is growing at a CAGR of 6.9%. Domestic production is pegged at 20,000–21,000 MT, with exports ranging between 4,000–6,000 MT per annum.
• Key Downstream Consumption Segments of Niacinamide
  1. Personal Care: Accounts for 42% of total demand, primarily in skincare and beauty formulations.
  2. Multivitamins: Represents 18% of consumption.
  3. Aziderm Creams: Constitutes approximately 8% of demand.
  4. Pharmaceuticals (Psoriasis, Atopic Dermatitis, Neuropathy, Cholesterol-lowering drugs): Collectively contribute 32% to domestic demand.
• Major Niacinamide Manufacturers & 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 the expansion at Jubilant, additional Niacinamide volumes are expected to be available for domestic and export markets.
• Looking ahead, the demand for 2-Picoline is likely to strengthen from June 2025, driven by seasonal demand for pesticides, herbicides, and insecticides.
• However, demand for 3-Picoline is expected to remain soft as sunscreen formulations enter a seasonal lull, and increased Niacinamide output may keep price trends mixed to neutral.
• A market source added that the recent rise in COVID-19 cases could potentially revive demand for vitamins in the near term.

Global Energy and Feedstock Market Movements

In the global energy markets:

1. WTI Crude Oil declined by 0.05%, settling at $61.48 per barrel
2. Natural Gas edged up by 0.01%, trading at $3.26/MMBtu
3. FOB Middle East Ammonia was assessed at $342/MT

Market Outlook and Analyst Commentary

Experts project that 2-Picoline prices may remain volatile in the short term amid fluctuating agrochemical demand. However, 3-Picoline and 4-Picoline are likely to see price corrections due to subdued offtake from their respective downstream sectors.