Chemicals & Polymers

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.

PVC prices range between ₹74-77.75/kg, with a notable oversupply in the Asian market due to increased production and declining real estate demand. Despite a 2.5% rise in production to 20.5 million tons in 2024, apparent consumption fell, exacerbating inventory build-ups and pressuring prices downward in a sluggish economic environment.

The Acrylonitrile market shows mixed performance across regions, with prices stable in Asia and Europe but subdued in North America due to reduced global demand. Automotive sector growth offsets weaker demand from paints and coatings. Experts predict a January price dip, recovery starting March, and stronger market dynamics post-winter.

Polymer prices reflect continued market weakness as both supply and demand face challenges. Increased production and imports are pressuring supply, while limited demand follow-up and inventory replenishment dominate downstream activities. Maintenance shutdowns by major producers like Reliance aim to stabilize operations.