Imported Acetic Acid in Kandla

Acetic Acid prices rose domestically by ₹1.5/kg, influenced by higher import costs, supply constraints, and surging FOB China prices. Domestic demand surged 26% in 2024, driven by new production capacities.

Mono Chloro Acetic Acid (MCAA) prices have increased by ₹3/kg due to rising Acetic Acid costs. Strong demand from agrochemical and pharmaceutical sectors, particularly for 2,4-D and Ibuprofen production, supports this trend. Indian manufacturers operate at high capacities, and experts predict continued price hikes amidst robust demand and elevated feedstock costs.

Acetic Acid prices in India have risen due to higher replacement costs driven by surging FOB China prices. While supply remains tight and producers face conversion losses, demand from dyes, pigments, and expanded production capacities is bolstering market activity. Upcoming Chinese New Year holidays may further disrupt supply chains.

Escalating conflict between Iran and Israel has significantly impacted domestic market dynamics today, leading to heightened market uncertainty. Shipments of methanol and toluene from Iran have been put on hold, triggering strong reactions within the market. As Iran is a key supplier, especially to China, which relies heavily on Iranian methanol for acetic acid production, supply disruptions are expected to challenge downstream sectors, including ethyl acetate and acetic anhydride, now under increased scrutiny and speculation.

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.

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.

N-butanol prices in Kandla remain steady at ₹84.5/kg, while the Asian market in Shandong witnessed a slight price increase this week due to tight supply and cautious downstream demand. India's seasonal demand, especially from the paints and coatings sector, is expected to sustain price stability until mid-2025.

The melamine market is witnessing stable prices, with slight fluctuations in the Asian benchmark. Oversupply persists due to increased production capacity, while weak downstream demand, impacted by the real estate slowdown, limits significant price changes. Adjustments in supply and potential policy shifts in real estate may influence future demand recovery.

Toluene prices have fallen by Rs 2/kg due to decreased FOB Korea Benzene futures. The supply-demand situation remains balanced, with seasonal recovery expected in January, driven by growth in the paints, coatings, and bulk drug manufacturing industries. Experts predict volatility in toluene prices in the coming weeks but expect short-term price stability due to increased demand in key sectors.