Imported Melamine in Mundra

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 slightly declined, reflecting bearish market sentiment and subdued demand in key industries like paints and coatings. While domestic production remains stable, imports continue to meet the majority of demand. Global crude oil and feedstock price fluctuations, coupled with plant turnarounds in Southeast Asia, are influencing market dynamics.

Vinyl Acetate Monomer (VAM) prices in India rose by ₹2/kg due to higher feedstock costs and robust downstream demand. Supply constraints from limited shipments and INEOS's plant shutdown added upward pressure. Domestic VAM production resumed, reducing some import dependency. Seasonal growth in paints, coatings, and adhesives boosted market sentiment.

Acetic Acid prices surged to ₹40.50/kg as GNFC raised prices amid higher Methanol costs and robust downstream demand. Limited vessel availability and plant shutdowns are tightening supply, while growing demand from Acetyl product expansions drives bullish market sentiment. Importers and manufacturers brace for potential further increases, intensifying market volatility.

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.

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.

Sodium Methoxide prices increased by ₹2 per kg, driven by higher raw material costs. Despite a slight correction in methanol prices, SMO prices remain unaffected. Supply has strengthened with new capacities, while demand is primarily met through just-in-time procurement. Experts predict price volatility amid surging downstream demand and falling feedstock prices.