Imported MIBK in Kandla

MIBK prices saw a downward trend today, with importers reducing their offers by INR 2/kg. Current quotations stand at INR 140++/kg on an ex-Hazira and ex-Kandla basis for 60-day credit terms. Traders holding stock offer slightly lower prices, quoting INR 138++/kg ex-Kandla and INR 138.50++/kg ex-Hazira for advance payments.

Softening feedstock costs and high inventory have caused a price dip in MIBK. Another major market update at the same time is high expectations of a shift in market dynamics in 2024-25 due to Deepak Phenolics' potential production plans.

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%.

Domestic methanol prices witnessed an increase of ₹1.00/kg as importers adjusted their offers upwards. The updated prices, based on advance payment terms with immediate lifting, are as follows: Ex-Kandla: ₹27.00++, Ex-Mumbai: ₹27.50++.