Chemicals & Polymers

ABS prices continued to soften across Asian markets, led by oversupply, lower feedstock costs, and subdued demand from converters. In India, prices remain relatively stable due to limited spot cargoes despite global weakness. Persistent bearish sentiment, high inventories, and cautious downstream activity suggest further price erosion in the near term.

Toluene prices in India have surged ₹3/kg, driven by geopolitical tensions, rising crude oil, and naphtha prices. Importers are holding firm on higher offers despite tepid buyer response. Refinery margins are under severe pressure, pushing expectations of a price rebound. Downstream demand from pharma and coatings sectors shows gradual recovery.

Acetic Acid prices softened in India despite tight port inventories, driven by weak demand and lower replacement costs. While some bullishness is expected from downstream sectors, ongoing plant turnarounds and geopolitical risks continue to pressure the market. Strategic inventory building is advised amid anticipated supply disruptions and price volatility.

Imported PVC K67 prices at Mundra range from ₹63,900–₹68,250/MT, varying by origin. Despite brief stabilization, April ended with a 4.7% price drop. Elevated inventories, high production rates, and weak futures continue to weigh on sentiment. The market remains bearish, with limited downstream interest and weak cost support in May 2025.

Toluene prices dropped by ₹1/kg this week due to weak sentiment and lower replacement costs. Despite soft liquidation, downstream demand—especially from pharma and coatings—is recovering. While margins remain under pressure, rising crude oil and demand may support price rebound. Importers remain cautious amid fluctuating market signals.

PET bottle flake prices in Asia show slight volatility amid oversupply and weak demand. Indian PET prices remain range-bound, with Hyderabad reporting the highest. High production rates, ample feedstock, and sluggish end-user demand are capping price growth. Market remains bearish, but oil price rebounds could offer limited upside.

Domestic methanol prices dropped ₹0.50/kg amid healthy market activity and steady supply. Strong liquidation in Kandla and stable demand from formaldehyde and bulk drug sectors supported near-term stability. However, softening Asian futures and incoming Iranian cargoes signal a possible correction by mid-May 2025.

Ethyl Acetate prices have surged up to ₹4/kg due to rising feedstock costs, production constraints, and higher freight rates. Manufacturers are cautious about large-volume deals amid supply uncertainties and a major shutdown. Substitution from Acetone is increasing demand. Price volatility is expected to persist through June 2025.

Acetone prices in India have increased by ₹2/kg due to tight supply, strong paint sector demand, and low port inventories. Domestic output remains constrained while downstream sectors like pharmaceuticals and diacetone alcohol rebound. Traders expect further price hikes, while producers are cautious amid low conversion margins and limited vessel arrivals.