OfBusiness Chemicals Dailies

25th April’23

Price

• Acetic Acid prices have been lowered in the domestic market by Rs.1 /kg on cash payment terms. The prices now stand at Rs.38++ Ex Mumbai, Rs.38.50++ Ex Kandla, and Rs.37.75++ Ex Hazira.
• The reason for this price decrease is the high inventory and lower replacement stocks in all ports. Importers offer Rs.38.50++ Ex Mumbai, Rs.38.75 Ex Hazira, and Rs.38.25++ Ex Kandla for 60 days credit terms.
• In the retail market, Acetic Acid barrel pack prices remain at Rs.46++ Ex Mumbai, Rs.45.50++ Ex Kandla, Rs.49.50++ Ex Hyderabad, and Rs.51.50++ Ex Vishakapatnam

Demand and Supply

• Demand from the primary consumer, Ethyl Acetate manufacturers, has picked up. In addition, seasonal demand from downstream industries such as paints, coatings, adhesives, pharma, pigment, and MCA also shows good demand this week.

News

• In the international market, upstream natural gas prices decreased by 0.01$ to 2.19$ while feedstock Methanol CFR China prices dropped by 2$ to 299$/Mt.
• Acetic Acid, FOB China prices, increased by 10$ to 365 $/Mt. Downstream VAM prices decreased by 30$ to 1005 $/Mt CFR China. Another downstream Ethyl Acetate Rotterdam price increased 5$ to 1205 $/Mt.

OFB’s Opinion

• OFB experts predict that Acetic Acid prices will remain volatile as downstream demand from Ethyl Acetate, MCA, and Pharma manufacturers show good demand. However, lower replacement costs and high port inventories could resist higher prices