OfBusiness Chemicals Dailies | 29th November 2023

Price

• The cost of Ethyl Acetate recently rose by Rs.1/kg due to an increase in Acetic Acid prices. Presently, Ethyl Acetate prices stand at Rs.81.50++ Ex Bharuch and Rs.80++ Ex Maharashtra for those paying in advance.
• Large-scale deals are being struck at Rs.78-79++ Ex Plant, allowing a 60-day credit for deliveries scheduled in December.
• Traders are cautious, holding back on making bids as they anticipate further price hikes. This expectation stems from heightened demand from the Pharma and Packaging industries.
• In retail markets, the price of Ethyl Acetate has risen by Rs.1/kg, reaching Rs.90.00/kg++ Ex Hyderabad, Rs.87/kg++ Ex plant Maharashtra, Rs.88.00/kg++ Ex Pune, and Rs.88.75/kg++ Ex Mumbai for those paying in advance.

Demand and Supply

• The demand for Ethyl Acetate has surged, primarily due to increased needs in the Pharma, Paints, Packaging, and Inks sectors following the Diwali holidays. Additionally, seasonal extractions, like curcumin, are adding to the demand for Ethyl Acetate.
• The higher Ethyl Acetate prices in China present an opportunity for Indian manufacturers to export, anticipating shortages in supply by December.
• Factors contributing to this optimistic market sentiment include rising Acetic Acid costs in China and uncertainties in the domestic Ethanol supply.

News

• Recent international market trends indicate a 1.22% decrease in WTI Crude oil benchmark prices to 76.38 $/barrel and a 1.38% decrease in Natural gas prices, now at 2.78$.
• Meanwhile, feedstock Acetic Acid prices in China have escalated by 10$ to 380$/Mt, US Ethanol prices stand at 1.86$/Gallon, and downstream Ethyl Acetate prices in FOB Rotterdam range between $990-1100/mt.
• Hualu Hengsheng a leading Acetic Acid plant in China has 600kt/year production capacity, operating at 90%.
• Hengli a leading Acetic Acid plant in China has 350kt/year production capacity, operating at 100%.
• Tianjin Soda a leading Acetic Acid plant in China has a 200kt/year production capacity and remains shut down.
• GD Younglighta’s leading Acetic Acid plant in China has a 300kt/year production capacity, operating at 90%.
• Yongmei Longyua a leading Acetic Acid plant in China has 400kt/year production capacity, operating at 90%.
• Hebei Yingdu a leading Acetic Acid plant in China has 400kt/year production capacity, operating at 70%.
• Henan Yima a leading Acetic Acid plant in China has a 300kt/year production capacity and remains shut down.

OFB’s Opinion

• It is expected that Ethyl Acetate prices will continue to remain elevated due to heightened demand from downstream consumers, coupled with rising Acetic Acid prices and potential export opportunities. In light of this, consumers are advised to strategically plan their inventory, considering the anticipated persistence of price surges driven by robust market demand.