Buyers Hold Back as MIBK Prices Ease; Deepak Phenolics Entry in Focus

Key Takeaways

1. Prices Down: ₹1/kg drop from importers; advance payment offers are lower
2. Demand Weakness: Rubber and bulk drug industries continue to pull back
3. Inventory Pressure: High port stocks and declining replacement values trigger sell-offs
4. Supply Watch: Deepak Phenolics’ Q3 launch could reshape India’s import model

MIBK Price Snapshot – As of 10 April 2025

• MIBK prices registered a decline on 10 April, as several importers revised their offers downward by INR 1/kg. Current offers are being heard at INR 118++/kg ex-Hazira and INR 119++/kg ex-Kandla for 60-day credit terms.
• Meanwhile, traders are quoting marginally lower rates for prompt payment transactions—offering at INR 116++/kg ex-Kandla and INR 117++/kg ex-Hazira on an advance payment basis.
• The downward price movement is largely driven by subdued demand from downstream sectors, excess inventory levels at Indian ports, and falling replacement costs. 
• These factors have collectively contributed to bearish sentiment in the domestic market, according to market sources.

MIBK Demand and Supply Insights

• Despite the seasonal cycle, MIBK market continues to remain under pressure due to elevated port stock levels and declining replacement values. 
• This has led to aggressive selling by importers and traders aiming to liquidate inventories, as buyers hold back on procurement amidst expectations of further price corrections. Current freight and upstream trends are also dissuading buying interest.
• India's monthly requirement for MIBK is pegged between 4.1–4.25 KT, with the entire demand being met through imports. 
• Industry speculation is intensifying around Deepak Phenolics’ anticipated foray into MIBK manufacturing, with commercial production likely to commence by Q3 2025. This development is expected to impact domestic supply dynamics going forward.
• End-use consumption is concentrated in sectors such as bulk drugs, rubber chemicals, flavours and fragrances, and paints and coatings. Demand from the bulk drug and rubber industries remained weak through February and is projected to remain subdued through March 2025 due to slow downstream activity. 
• However, consumption from the paints and coatings segment continues to hold steady, lending some stability to the market.

Market News: Global Market Updates

• On the international front, crude oil (WTI) prices dropped by 1.21% to settle at $67.43/bbl, while natural gas witnessed a 2.27% decline, closing at $4.25/MMBtu. 
• In Asia, FOB Korea benzene prices were assessed at $858/MT, and FOB Korea propylene stood at $820/MT. Feedstock CFR China acetone prices were reported at $780/MT.
• CIF India offers for April-loading MIBK cargoes were heard in the range of $1,350–1,360/MT, subject to volume and payment terms.

Expert Opinion and Market Outlook

• MIBK prices are expected to exhibit mixed trends during the week ahead. While overall market sentiment remains bearish due to high inventories and declining replacement values, steady demand from the paints and coatings industry may lend short-term support.
• Buyers are advised to adopt a just-in-time purchasing strategy and avoid building excess inventory, as price softness may persist in the near term.