The Alpha Pinene market in India faced significant challenges in November 2024. Domestic demand was subdued, and inflationary pressures affected the overall market dynamics. Manufacturers faced rising operational costs, such as freight and labour, while dealing with competitive market conditions. Additionally, cautious purchasing behaviours across key sectors influenced the market Alpha Pinene environment throughout the month.

According to ChemAnalyst, Alpha Pinene retail prices in November were recorded at USD 3,725 per metric ton on ex-Mumbai basis, showing a drop of about 3.6% from October. This shift in pricing was influenced by several market factors. A major development was the depreciation of the Indian Rupee (INR) against the U.S. Dollar, reaching a record low of 84.5 per USD during the month. This currency fluctuation increased the cost of importing key raw materials, including Alpha Pinene, adding financial strain to manufacturers who rely on imported feedstocks.

Furthermore, Bharat Petroleum Corporation Limited (BPCL) announced a reduction in hexane prices on 4th November 2024. This strategic move, aimed at maintaining competitiveness, provided cost relief to manufacturers, including those producing Alpha Pinene. The adjustment in hexane prices partially offset the increased costs caused by currency depreciation, allowing manufacturers to stabilize their production activities.

Demand trends for Alpha Pinene across key sectors showed variation. The paints and coatings sector experienced decreased demand, particularly in industrial coatings, due to seasonal factors and reduced construction activity. However, decorative coatings maintained consistent demand, driven by renovation projects. In contrast, the agrochemical sector showed steady demand for Alpha Pinene, supported by preparations for the winter planting season. The production of insecticides and herbicides, which use Alpha Pinene as an intermediate, maintained steady consumption levels throughout the month.

Despite these challenges, domestic manufacturing of Alpha Pinene remained stable. Manufacturers optimized production schedules and managed inventories prudently to align with fluctuating market conditions. Feedstock availability, particularly Crude Sulfate Turpentine, remained stable, further supporting consistent production levels. However, limited Alpha Pinene import activity was reported as global uncertainties caused suppliers to adopt a cautious approach.

Looking forward, the Alpha Pinene market in India is expected to experience price fluctuations over the coming months. Prices are anticipated to decline by 2.7% in December 2024, followed by a rebound in January 2025. ChemAnalyst forecasts that this trend will continue with variations through the first half of 2025, influenced by factors such as industrial activity and export demand.

Overall, November 2024 was a tough period for the Alpha Pinene market in India. Various factors like inflation, currency fluctuations, and specific sector demands significantly affected market conditions. Despite these hurdles, manufacturers showed resilience by managing their operations and inventories strategically. As we move further into December and the coming months, ChemAnalyst notes that industry stakeholders will need to closely monitor these dynamics to effectively navigate the evolving landscape.