Butyl Acrylate Monomer (BAM) Market Gains Momentum as Seasonal Demand Picks Up

Key Highlights

1. BAM Price Trends - BAM prices rose by ₹2/kg, now at ₹119++/kg (import, 60-day credit) and ₹118++/kg (spot payment)
2. Supply and Regional Demand - Western India dominates with a 68% market share and 4.8% annual growth.
3. Global Market Trends - N-butanol: $975/MT (+$5); Propylene: $810/MT (steady).
4. Expert Recommendations - BAM prices may remain volatile with peak demand expected until May 2025.

Chemicals Price: Surge in Butyl Acrylate Monomer (BAM) Prices

• The price of Butyl Acrylate Monomer (BAM) has witnessed a ₹2 per kg increase in the import market, now quoted at ₹119+ per kg (Ex-Kandla) for 60-day credit terms and ₹118++ per kg for spot payments.
• Traders have also raised their offers, with prices standing at ₹119++ per kg (Ex-Kandla and Mumbai) under 60-day credit conditions.
• BPCL, the sole domestic producer, has adjusted its BAM prices to ₹117++ per kg (Ex-Kochi) for cash payment terms.
• The price escalation is attributed to a surge in demand from the paints and coatings industry, which has recently gained momentum.

Chemicals Supply & Demand: Strong Momentum in Key Industries

• India’s current BAM demand is estimated at 20 kt per month. BPCL, the only domestic manufacturer, operates with a production capacity of approximately 15 kt per month.
• Around 60% of the domestic BAM consumption originates from the paints, coatings, adhesives, and sealants sectors. The remaining 40% is utilized in downstream applications such as polymers, textiles, leather processing, and other chemical sectors.
• The western region, primarily Maharashtra and Gujarat, accounts for 68% of the market share, supported by an expected annual growth rate of 4.8%.
• In December 2024, the paints and coatings segment experienced mixed demand trends, characteristic of the off-season. 
• However, demand rebounded in the final week of December, driven by increased consumption from paints, coatings, adhesives, textiles, and leather industries.
• Market participants noted higher inventory levels at ports, which are expected to liquidate swiftly as market sentiment improves. Demand is projected to remain strong until May 2025, as the paints and coatings industry ramps up production in response to seasonal factors.

Chemicals Market News: Mixed Trends in Feedstock and Crude Oil Prices

• Globally, market dynamics have shown varied trends:
  WTI crude oil prices dipped marginally by 0.40%, settling at $73.66 per barrel.
  Natural gas prices surged by 5.68%, reaching $3.54.
  Feedstock propylene (FOB Korea) prices remained steady at $810 per metric ton.
  N-butanol (CFR China) prices rose by $5, climbing to $975 per metric ton.
• China's caustic soda exports witnessed a drop in November, with Australia and Indonesia making up nearly 87% of the total export volume.
• India's BatX Energies has inaugurated a new Li-ion battery recycling facility in Uttar Pradesh. The plant will recover valuable materials, including lithium, cobalt, nickel, and manganese, from used Li-ion batteries.
• Shanghai Huayi Chemical has shut its Acetic Acid Plant on 5th January, 2025. The Plant is located in Wuwei, Anhui, China with a production capacity of 500,000 Tons/Year.

Expert Opinion: BAM Price Outlook and Strategic Recommendations

• BAM prices are expected to exhibit volatility in the near term, supported by rising demand from key sectors such as paints and coatings. Additionally, elevated feedstock prices for propylene and n-butanol may exert upward pressure on BAM pricing. 
• With demand expected to peak in May 2025, industry players are advised to consider strategic stockpiling during price dips to mitigate cost pressures.