Imported MEK in Kandla

Importers have lowered Methyl Ethyl Ketone (MEK) prices by INR 2/kg, bringing the current price to INR 96/kg (Ex-Kandla) on 60-day credit terms. Authorized dealers of domestic producer Cetex Petrochemicals Ltd. are offering MEK at INR 90-91/kg (Ex-Chennai) for advance payments, and at INR 93/kg on 60-day credit terms.

Acetic Acid prices increased slightly as importers raised rates by ₹0.5/kg due to rising upstream costs and stable Vinyl Acetate Monomer (VAM) prices. Supply remained steady, supported by vessel arrivals, while demand showed signs of recovery from pharmaceutical and coating sectors. Internationally, higher FOB China prices and improved production activities signal potential price stabilization in the near term.

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.

This week, Ethanol amine prices dropped by nearly 3%, tracking a decline in feedstock Ethanol and Ammonia prices. Importers are offering Mono Ethyl Amine (MEA) at ₹105++/kg Ex-Mumbai (ISO Tank) and ₹123++/kg Ex-Mumbai (Barrel) on advance payment terms. Domestic manufacturers have also reduced their prices, according to a leading trader.

Toluene prices in India have increased by ₹3/kg, driven by a rebound in crude oil and naphtha prices, as well as strong demand from the paints, coatings, and pharmaceutical sectors. Supply constraints, coupled with positive spreads in BTX components, suggest a further potential price hike of $70/MT in the near term. India’s Toluene demand is largely met through imports, with domestic production contributing only 16.8%.