Chemicals & Polymers

Domestic hydrogen peroxide prices fell by ₹1/kg due to weak downstream demand and increased production. Key industries like textiles and pharmaceuticals continue to show sluggish demand. With ample supply and cautious buyer sentiment, prices are expected to remain under pressure, with further corrections likely in the near term.

Phenol prices have dropped by ₹2-3/kg due to increased imports, despite strong seasonal demand from plywood manufacturers. Ample supply and liquidation pressure keep the market bearish. Rising feedstock costs may push production expenses higher. Experts predict short-term price softness but suggest monitoring for potential rebounds due to upstream cost pressures.

PP prices surged in February 2025 due to supply shortages from Middle Eastern and Asian producers, logistical disruptions, and rising feedstock costs. While the packaging sector remains stable, demand in automotive and construction is weak. Market experts anticipate further price increases amid supply constraints, particularly before Ramadan.

Styrene Monomer prices showed minimal fluctuations due to weak buying trends. Rising benzene costs have increased production expenses, squeezing profit margins. Demand remains sluggish, particularly in EPS and 3S sectors. Meanwhile, supply remains stable despite maintenance activities. Market expectations indicate continued price consolidation, influenced by crude oil trends and benzene movements.

India's PVC market is witnessing steady demand from infrastructure and agriculture sectors. Prices remain competitive, with manufacturers expanding capacity to meet rising needs. Global supply disruptions and fluctuating raw material costs could impact pricing. Despite near-term volatility, the outlook remains positive as demand strengthens and production capacity increases.

Ethyl Acetate prices in India have risen by ₹0.5/kg, driven by higher ethanol and feedstock costs. Reduced production rates and increasing demand from paints and packaging are adding upward pressure. With Acetic Acid prices volatile and bulk buyers securing inventories, market conditions remain tight, signaling further price hikes ahead.

The polyethylene market remains under pressure as weak demand and increased spot availability lead to price adjustments. HDPE prices saw minor fluctuations, while LDPE found support due to supply constraints. Global crude oil trends and scheduled production shutdowns are influencing market sentiment. Demand recovery is expected by mid-to-late February.

N-Butyl Acetate prices have been revised upwards by importers, rising by ₹1/kg to ₹87++ per kg ex-Kandla on 60-day credit terms. Accord Organics, a key domestic producer, has also increased its base price by ₹1/kg, now offering at ₹87.00++ per kg ex-Ahmednagar on advance payment terms.

Acetone prices in India declined slightly due to weak demand from bulk drug manufacturers and lower replacement costs for importers. While the pharmaceutical sector saw a slowdown, demand from the paints, coatings, and diacetone alcohol sectors remained stable. Global crude oil and feedstock price trends continue to influence market sentiment.