Deepak Phenolics IPA (COMMERCIAL) in Dahej

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.

IPA prices remained largely steady, with limited fluctuation across Asian and Indian markets due to sufficient supply and cautious buying. Imported IPA prices in Mumbai are at Rs.98/kg, while in China, regional prices range from 6,700–7,100 RMB/ton.

The domestic prices for Phenol, Acetone, and IPA have seen a sharp increase following the announcement of a planned maintenance shutdown at Deepak Phenolics' plant, which is scheduled to take place from 10th to 25th October 2024. Currently, import offers for Phenol have risen to ₹105/kg (Ex-Kandla), marking a ₹2/kg increase on an advance payment basis. Acetone prices have also climbed by ₹2/kg, now priced at ₹83/kg (Ex-Mumbai) and ₹82.50/kg (Ex-Kandla) under similar payment terms.

In the domestic market, acetic acid prices have seen an increase, with importers raising prices by INR 1/kg to INR 38.50/kg on an ex-Kandla basis and INR 39.00/kg on an ex-Mumbai basis for advance payment terms, driven by a surge in downstream demand.

Acetone prices in India have experienced a decline due to surplus inventories and weak demand, especially from the pharmaceutical sector. Despite this, a seasonal increase in demand from the paints and coatings sector may stabilize prices soon. Global developments, such as changes in feedstock prices and supply adjustments in Asia, are also influencing the market.

Acetic Acid prices have fallen due to weaker demand and lower replacement costs, with bulk buyers seeking further discounts. Stable supply and bearish downstream demand, particularly from Ethyl Acetate producers, contribute to a challenging market outlook.

Phenol prices in India have softened due to increased supply and bearish trends in upstream markets like Crude Oil and Naphtha. Despite stable supply levels and seasonal demand recovery from plywood manufacturers, weak market sentiments and low replacement costs are exerting downward pressure on prices. Imports continue to fill the gap between domestic production and demand.

Methylene Dichloride (MDC) prices declined slightly due to increased supply and reduced demand. In China, prices dropped from 2960 RMB/ton on November 24 to 2850 RMB/ton on November 26. Indian prices remained stable at ₹37/kg. Seasonal demand surged in industries like paints, coatings, and adhesives.

The MTBE (Methyl Tertiary-Butyl Ether) market is experiencing a price increase driven by rising feedstock costs, particularly methanol futures. Domestic manufacturers, importers, and traders have all adjusted their rates accordingly. Despite subdued demand in the pharmaceutical sector, prices remain elevated, with future demand expected to rebound post-December 2024 events.