Chemicals

Phenol prices have softened this week due to increased supply, weak upstream market trends, and bearish sentiment. Domestic production has resumed, ensuring stable supply levels. Seasonal demand recovery from plywood manufacturers is expected to offset current price pressures partially.

The melamine market is experiencing downward pricing trends due to oversupply and reduced demand in downstream industries. New production capacities and restored operations of previously offline facilities are intensifying the supply-demand imbalance. Coupled with declining raw material costs, these factors create a challenging outlook for the market.

Toluene prices in the Indian market saw a downward revision due to weak upstream dynamics, including falling crude oil and naphtha prices. The demand remains subdued but is expected to recover with increased activity in the pharmaceutical and paints industries. Global market trends, such as maintenance at chemical plants in China, are also influencing supply and pricing dynamics.

IPA prices in India continue to decline, driven by weak demand, excess inventory, and lower replacement costs despite Anti-Dumping Duty. Domestic and imported supplies remain robust, contributing to price pressure. Crude oil prices fell by 2.45%, while natural gas prices slightly increased.

VAM prices in India have fallen due to weak demand and increased inventories. Sluggish activity during October's festive season further strained market sentiment. However, demand is likely to rebound by mid-November, supported by the paints and coatings sector's seasonal boost. Current Price Dynamics of Vinyl Acetate Monomer (VAM)

Toluene prices have declined due to lower feedstock naphtha costs and weak demand. The market holds ample supply, especially with slowed purchases after the festive period. Demand is expected to rise from the pharmaceutical and coatings sectors. Despite weak global sentiment, production shutdowns at key facilities and seasonal demand could support a gradual price recovery.

Phenol prices in the domestic market saw slight declines, largely due to stable supply and weaker feedstock prices. With Deepak Phenolics resuming operations and seasonal demand expected to increase, the price outlook remains cautious but optimistic.

Styrene Monomer prices in India dropped by ₹1/kg, reflecting lower Asian contract prices and weaker crude and naphtha values. Reduced holiday demand and moderate supply contribute to a bearish market. Key international market shifts and potential crude oil recovery could alter pricing trends, with experts suggesting an inventory buildup ahead of the anticipated demand rebound post-November.

Toluene prices have seen a decline of ₹2/kg this week, with rates hovering at ₹73-74 per kg for importers and ₹74-75 per kg for traders. Limited bulk purchases are reported due to cautious buyers expecting further corrections. While port inventories are high due to recent slowdowns, rising demand from the pharmaceutical and paints sectors may support prices soon.