Chemicals & Polymers

IPA prices in India corrected to ₹80–84/kg amid oversupply from imports and weak sentiment linked to softer propylene and acetone values. Demand remains concentrated in pharmaceuticals and personal care, together forming half of consumption. Market outlook stays bearish short term, but recovery is expected as bulk drug output strengthens.

PET bottle chip prices in China witnessed weak performance in early to mid-August, pressured by subdued market sentiment. By August 28th, average selling prices stood at USD 840/ton.

Acetone prices in India firmed to ₹60/kg amid stable supply and subdued demand. Imports matched domestic offers, while Asian benchmarks continued downward corrections. Feedstock costs declined, supporting production. Demand from bulk drugs remains weak, but personal care, adhesives, and inks are expected to drive recovery post-monsoon.

In the Chinese PE market, LLDPE averaged $1,041/ton on August 20 and $1,043/ton on August 27, marking a slight increase of 0.25%. LDPE prices also inched higher, averaging $1,346/ton on August 20 and $1,349/ton on August 27, reflecting a 0.17% rise. Meanwhile, HDPE remained stable throughout the period, holding firm at $1,120/ton.

Methanol markets across Asia remained muted this week. India stood out as the strongest netback market, with sanctions on Iranian cargoes tightening availability and keeping prices firm near ₹30/kg despite cautious demand during a festive lull. Non-sanctioned sellers are largely sold out for September, leaving October offers pending, while global production shortfalls and diverted cargoes continue to shape regional trade flows.

Domestic toluene prices rose by ₹1/kg amid thin festive trading and limited supply. Demand from pharma, paints, and coatings stayed weak due to monsoon disruptions. Imports are expected to ease tightness later in August. Refinery margins remain pressured, while Asian benzene futures signal bearish sentiment, keeping the medium-term outlook cautious.

Polypropylene (PP) prices stayed stable in Asian markets but weakened domestically with a 1% decline in August. Falling crude and propane costs reduced support, while higher output and inventories added pressure. Demand stayed sluggish amid seasonal lows and cautious buying. Experts expect a stagnant market in the near term.

Curcumin prices surged 8–9% this week on supply disruptions from heavy monsoons and firm demand from pharma and nutraceuticals. Regulatory shifts, including the U.S. crackdown on artificial dyes, are driving global adoption of Curcumin E100. With tight feedstock availability and bullish fundamentals, buyers are advised to secure inventories early.

U.S. Polypropylene (PP) export prices weakened this week due to oversupply and competitive Asian cargoes. Demand remains muted in overseas markets, while U.S. sellers face mounting inventory pressure and intensify price cuts. Market sentiment stays bearish with limited short-term recovery expected.