Chemicals & Polymers

Domestic Acetic Acid prices have softened by ₹0.5/kg, now quoted at ₹31.75++/kg Ex-Kandla and ₹32.00++/kg Ex-Mumbai for advance payment terms. For bulk volumes with 90-day credit applicable for July and August liftings, rates are at ₹32.50++/kg Ex-Kandla and ₹32.75++/kg Ex-Mumbai.

PVC prices remained flat or softened across Asia amid weak demand, seasonal monsoons, and cautious buying sentiment. China and Vietnam saw price corrections due to reduced construction activity. Indian demand stayed sluggish with adequate supply. Upcoming plant shutdowns may limit supply, but price recovery is expected post-monsoon.

Domestic methanol prices dropped marginally after the BIS certification withdrawal. Weak downstream demand and lower replacement costs are pressuring prices. Despite steady supply, port inventories are rising due to slow offtake. Global prices show slight strength, but Indian buyers are advised to remain cautious amid a potential supply surge.

HDPE prices in India remain firm across prime and near-prime grades. While Europe saw slight price increases due to tight supply, China witnessed a drop driven by weak construction demand and high inventories. Global sentiment remains cautious, with limited upside unless demand revives or geopolitical tensions ease.

Indian PP prices remained steady, while China witnessed minor declines amid weak demand and soft feedstock support. High inventories and reduced end-user activity kept sentiment bearish. Supply disruptions from planned maintenance were offset by new capacities. Overall, PP prices are expected to stay under pressure through the rest of July.

MIBK prices declined ₹1/kg this week due to high port inventories, weak downstream demand, and falling replacement costs. While demand from paints and packaging remains low, rubber and bulk drug sectors show early signs of revival. Deepak Phenolics’ entry may alter domestic supply dynamics by Q3 2025.

Despite weak downstream demand, domestic toluene prices in India rose ₹2/kg this week, tracking a sharp global crude oil rally. While pharma demand offers some support, monsoon-led slowdowns continue to affect paints, coatings, and packaging segments. Rising crude prices and tight refinery margins could drive further price volatility.

Acetic Acid prices in India dropped 12% amid weak downstream demand, monsoon disruptions, and cheaper Chinese imports. International prices also declined, with spot deals as low as ₹28/kg. While demand from Acetonitrile and dye sectors offers limited support, overall sentiment remains bearish, with further price corrections likely in the short term.

PET prices dropped last week due to weak raw material costs and sluggish demand, despite a slight price hike by Wankai. Leading Chinese producers have begun output cuts, but high inventories persist. Exports rose in May, though global competitiveness is under pressure from higher freight rates and US anti-dumping tariffs.