OfBusiness Chemicals Dailies

1st May’23

Price

• In the domestic market, Ethyl Acetate prices decreased by Rs.2/kg to Rs.77++ Ex Pune on cash payment terms due to lower feedstock prices. The prices of Ethyl Acetate fell by almost Rs.3/kg a week after Acetic Acid prices crashed by 4 rupees per kg. In the retail market, the prices of Ethyl Acetate intact barrels were also reduced by Rs.2/kg. The prices are now at Rs.85++ Ex Pune, Rs.88++ Ex Hyderabad, Rs.90++ Ex Chennai, Rs.89.50++ Ex Vishakhapatnam, Rs.87++ Ex Mumbai, and Rs.88.50++ Ex Kandla.

Demand and Supply

• The demand for Ethyl Acetate from Paints, Coating, and Adhesive manufacturers has increased this month due to seasonal demand. However, supplies remain high due to manufacturers operating at high production rates to cater to seasonal demand.
• In addition, manufacturers are operating at different prices due to lower raw material costs. Hence, traders, Bulk, and retail buyers are not looking to build inventory as they rely on spot deals.
• Demand from packaging and Ink manufacturers also picked up last week. A market participant said that primary consumer Bulk drug manufacturers’ demand was good in April due to increased production rates.
• In the Export market, the demand for Ethyl Acetate in Europe and Africa picked up last week as lower prices are attractive to foreign buyers, a merchant Exporter opined.

News

• Upstream Natural gas prices increased by $0.06 to $2.41, and feedstock FOB China Acetic acid prices were stable at $365/Mt, and in the US, Ethanol prices are at $2.42. Downstream FOB Rotterdam Ethyl Acetate prices were at 1205$ /Mt.

OFB’s Opinion

• The price of Ethyl Acetate is expected to fluctuate this week as a result of reduced feedstock prices and increased production rates. Nevertheless, the market may experience a temporary surge due to seasonal demand from Adhesives, paints, and coatings.