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.

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.

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.

Domestic methanol prices dipped by ₹0.5/kg as aggressive liquidation from traders met weak demand. Improved Iranian supply and declining Asian futures pressured prices further. Key sectors like pharmaceuticals and formaldehyde showed mixed demand trends. Experts foresee continued price corrections, urging buyers to approach inventory replenishment cautiously amid a bearish market outlook.