In March 2025, the prices of Nitro-o-Xylene in India and China declined due to various market factors. In China, the reduction of prices was mainly attributed to lower upstream nitric acid prices and weakened demand from main downstream consumers. At the same time in India the Nitro-o-Xylene prices fell due to reduced upstream nitric acid prices. Additionally, the availability of imports from China also contributed to falling prices in the Indian market. Overall bearish sentiment in the market exerted downward pressure on prices.

In China, the reduced prices of Nitro-o-Xylene was largely due to lower prices of upstream nitric acid and o-xylene which incentivized lower production costs also allowing manufacturers to provide more competitive pricing and contributing to the overall downward trend in the market.

Moreover, in March 2025, the slowdown in China's other key consuming segments for Nitro-o-Xylene, the pharmaceutical sector, and specialty chemicals etc demonstrated a decline, partially affecting the pricing situation of the product. Overall, weak consumption from sectors consuming nitro o-xylene added pressure to prices. Lower input costs and depressed consumption from large segments of the downstream industry were both strong feedback leading to reduced price levels this month.

 In India, the paints and coatings industry, the most prominent downstream sector for Nitro-o-Xylene experienced a temporary slowdown due to the deceleration in construction projects, resulting in reduced demand for polyvinyl chloride used in construction sector.

The Indian automotive sector with lower demand also played a role in reduced prices of Nitro-o-Xylene. For instance, Tata Motors indicated a slight decline of 0.35% in automotive sales during March 2025 compared to March in the previous year. Such fluctuations in the automotive sector, affected paint and coatings consumption pattern. 

As per ChemAnalyst, in the upcoming month, Nitro-o-Xylene prices in India and China are expected to rise due to expected recovery in the construction sector and increased demand for paints and coatings, thereby raising the need for Nitro-o-Xylene. In addition to that, the automotive market is also expected to rebound in coming months, which will also lift specialty chemical consumption as vehicle production will increase. China is expected to experience a pickup in industrial activity in the upcoming month, especially related to pharmaceuticals and specialty chemicals. All these factors and potential movements in the market and raw material prices are likely to put upward pressure on prices of Nitro-o-Xylene leading to bullish outlook in both Indian and the Chinese markets.