Imported VAM in Kandla

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.

Domestic Vinyl Acetate Monomer (VAM) prices rose by ₹2/kg this week, driven by seasonal demand from paints and adhesives sectors and higher raw material costs. India’s VAM market, reliant on imports, sees increased trading activity and a demand surge from downstream applications like VAE-based paints.

Niacinamide prices dropped by ₹100/kg this week due to weak export demand and slow domestic consumption. Seasonal demand fluctuations and financial year-end closures further impacted trading activity. However, supply remains stable, supported by Jubilant Ingrevia’s expanded production capacity in Gujarat. With India’s Niacinamide demand growing at 6.9% CAGR, market dynamics are expected to shift.

Mixed Xylene (MX) prices dropped by ₹3/kg due to reduced replacement costs and weak downstream demand ahead of fiscal year-end. Despite healthy supply levels, demand from sectors like paints and coatings has slowed. However, seasonal demand is expected to rebound in April, potentially supporting prices.

Sodium Methoxide prices have decreased by ₹1 per kg amid a slowdown in biodiesel production and fiscal year-end lulls. The supply remains stable, but unfavorable economics challenge manufacturers. Industry experts suggest a cautious approach due to fluctuating market conditions.

Toluene prices dropped by ₹5/kg amid bearish sentiment and declining benzene contracts. Despite stable supply, year-end inventory caution dampened demand. The naphtha-to-toluene spread fell below breakeven, while favorable benzene spreads offered some relief. Seasonal demand from paints and coatings may support prices post-March, though overall market outlook remains cautious.

IPA prices have declined sharply amid high port inventories and sluggish downstream demand. Importers are facing liquidation pressure, while domestic producers maintain stable prices. Bulk buyers seek lower rates for April. With reduced consumption from pharma manufacturers and ongoing financial year-end stock adjustments, bearish market sentiment is expected to persist.

MDC prices have increased, with manufacturers raising offers despite weak demand. Domestic supply is abundant due to increased production capacity from TGV SRAAC and the new entry of Sreyas. However, demand from the active pharmaceutical ingredient (API) sector remains low. The market is expected to remain volatile, with price stability dependent on manufacturer coordination and inventory management.

Methanol prices dropped by ₹4/kg week-on-week due to weak demand and resumed Iranian production. Imports are quoted at ₹34.00-₹35.00/kg across ports. While formaldehyde demand remains steady, bulk drug manufacturers cut consumption sharply. Market experts anticipate further corrections as supply increases. Buyers should exercise caution in inventory decisions.