Butyl Acrylate Monomer Prices Fall, Market Sentiment Remains Bearish for October

Key Takeaways:

• Price Trends: BAM prices have declined slightly, with varying prices offered based on payment terms.
• Demand & Supply: BAM demand is stable but key sectors like paints have shown lower demand. However, the market is expected to rebound in November.
• Market News: Global prices for crude oil and feedstocks like n-butanol are fluctuating.
• Expert Insights: Lower feedstock costs may reduce BAM prices further.

BAM Price Trends

• The price of Butyl Acrylate Monomer (BAM) has seen a ₹1 per kg reduction by importers, bringing it down to ₹114+ per kg (Ex-Kandla) for 60 days credit terms, and ₹112++ per kg for immediate payment.
• Traders are also offering lower prices, with offers at ₹115++ per kg (Ex-Kandla) for 60 days credit.
• BPCL, the domestic producer, has revised its BAM price to ₹121++ per kg from Kochi under cash payment terms.

BAM Supply & Demand Update

• India's current demand for BAM is approximately 20 kt, with BPCL being the sole domestic manufacturer, maintaining a monthly production capacity of around 15 kt.
• About 60% of the domestic demand is driven by the paints, coatings, adhesives, and sealants sectors, while the remaining 40% comes from downstream industries such as polymers, textiles, leather, and various other chemical applications.
• The western region, particularly Maharashtra and Gujarat, holds a dominant market share of 68%, with an expected annual growth rate of 4.8%.
• In October, demand from the paints and coatings sector has been mixed, as it is the off-season. However, demand from the adhesives, textiles, and leather industries remains moderate post-Navaratri festival holidays.
• High inventory levels at ports and lower replacement costs are contributing to bearish market sentiments in the short term. Market participants expect demand to pick up in November 2024, especially as the paints and coatings sector rebounds after the monsoon season.

Global Chemical Market News and Trends

• In the global market, there have been notable movements in key indicators. WTI crude oil prices increased slightly by 0.19%, reaching $70.21 per barrel. On the other hand, natural gas prices dipped by 0.71%, settling at $2.35. Feedstock propylene (FOB Korea) prices remained stable at $820 per metric ton, while n-butanol prices (CFR China) rose by $15, reaching $945 per metric ton.
• In China, Jinneng Science and Technology, a major polypropylene producer located in Quindong, has announced a plant shutdown from the end of September 2024 until mid-October 2024.

Expert Opinion on Chemical Market Trends

• BAM prices are expected to remain volatile in the short term, with reduced demand from key sectors such as paints and coatings during the off-season. Additionally, lower feedstock costs for propylene and n-butanol could put further downward pressure on BAM prices.
• With a potential demand surge anticipated post-October 2024, buyers and traders are advised to consider stockpiling during the first half of October. Until then, adopting a just-in-time procurement strategy would be prudent for consumers.