Chemicals & Polymers

The EVA market is expected to remain stable in the near term, with minimal price fluctuations. Raw material prices will provide cost support, and reduced production rates will keep supply balanced. However, the Spring Festival may lead to subdued demand and slower trading activity. Overall, the EVA spot market is forecasted to remain stable with narrow price fluctuations.

Toluene prices have slightly declined, reflecting bearish market sentiment and subdued demand in key industries like paints and coatings. While domestic production remains stable, imports continue to meet the majority of demand. Global crude oil and feedstock price fluctuations, coupled with plant turnarounds in Southeast Asia, are influencing market dynamics.

Polymer prices in Ahmedabad reveal stability, with HDPE, LLDPE, and MDPE rates influenced by tight supply and weak demand. Global supply constraints, including RIL’s shutdown and import disruptions, are tightening the market. Force majeure events, such as TotalEnergies' PP outage and Formosa Plastics' PVC shutdown, further impact availability.

The Asian PET market saw a 3-4% price rise in January 2025, driven by seasonal demand and improving global trade. However, weak early January demand and competition from low-cost imports kept the market pressured. Favorable supply conditions and subdued overseas inquiries balanced short-term volatility, with gradual demand recovery anticipated.

Vinyl Acetate Monomer (VAM) prices in India rose by ₹2/kg due to higher feedstock costs and robust downstream demand. Supply constraints from limited shipments and INEOS's plant shutdown added upward pressure. Domestic VAM production resumed, reducing some import dependency. Seasonal growth in paints, coatings, and adhesives boosted market sentiment.

Polymer prices, particularly BOPP films, declined in January 2025 due to oversupply and weak demand. Industry incentives, plant shutdowns, and cautious market recovery highlight the current dynamics. A gradual stabilization is expected by Q1 2025 as restocking begins.

Acetic Acid prices surged to ₹40.50/kg as GNFC raised prices amid higher Methanol costs and robust downstream demand. Limited vessel availability and plant shutdowns are tightening supply, while growing demand from Acetyl product expansions drives bullish market sentiment. Importers and manufacturers brace for potential further increases, intensifying market volatility.

Methanol prices have risen by ₹0.25/kg following a surge in futures contracts and natural gas prices. Asian CFR futures climbed $6/MT as potential sanctions on Russian and Iranian supplies spark concern. In India, bulk consumption is rising despite production constraints, and traders are actively building inventories anticipating further price increases.

Polymer prices in India are rising due to speculative inventory hoarding ahead of a potential duty hike targeting non-BIS-compliant materials. Market trends suggest further price increases through February, with close attention to fiscal policy announcements.