Diketene Derivatives Prices Hold Firm Amid Volatile Feedstock Costs

4 Key Highlights

• EAA bulk price at ₹125++/kg (Ex-Pune); MAA at ₹118++/kg (Ex-Bharuch); higher trader quotes on credit terms.
• Ethyl acetate rose 4% to ₹69++/kg, driven by tight supply and shipment delays in ethanol and acetic acid.
• Pharma demand lifted EAA & MAA offtake, with support from sulfa drugs, cephalosporins, vitamins, and statins.
• Diketene market outlook bullish, supported by feedstock tightness and expected agrochemical demand in June.

EAA, MAA Prices Steady Despite Cost Pressures

• In the domestic market, Diketene prices remained stable, following a sharp rebound earlier triggered by a surge in feedstock costs.
• Bulk market prices for Ethyl Acetoacetate (EAA) were reported at ₹125++/kg Ex-Pune on advance payment terms, while Methyl Acetoacetate (MAA) was offered at ₹118++/kg Ex-Bharuch.
• Trader-level quotations were comparatively higher, with EAA and MAA offers at ₹135++/kg and ₹120++/kg respectively, based on 60-day credit terms.
• Ethyl Acetate and Sodium Ethoxide serve as key feedstocks for EAA.
• Methanol and Sodium Methoxide are feedstocks for MAA.
• Ethyl Acetate prices increased nearly 4% this week, reaching ₹69++/kg Ex-Pune, driven by tight supply and uncertainty in ethanol and acetic acid shipment arrivals.
• Conversely, methanol and sodium methoxide prices remained stable internationally but showed firmness in the domestic market, supported by increased demand from the bulk drug and agrochemical sectors.

Supply & Demand: Ethyl Acetate Jumps 4% on Supply Crunch

• EAA demand witnessed an uptick this month, led by improved offtake from the pharmaceutical sector, especially in the production of ampicillin, vitamin B1, aminopyrine, and sulfa drugs.
• Additional support came from agrochemical intermediates such as:
  1. Pyrazole derivatives (fungicides)
  2. Acetoacetamide herbicides (e.g., metolachlor)
  3. Pyrethroid insecticides
• The key downstream product Ethyl 4-Chloroacetoacetate, derived from EAA, continues to show firm demand across pharma (Cefaclor, Cefadroxil, Fluoroquinolones) and agrochemicals (glyphosate, triazoles, pyrimidines, neonicotinoids).
• MAA demand also showed improvement, driven by rising production needs in Atorvastatin, Domperidone, and Amoxicillin. However, demand from agrochemicals like Clethodim and Diazinone was reported to be below expectations.
• On a positive note, firm demand from Vitamin E, Vitamin A, and pyrazolone-based dyes (orange pigments) is expected to support MAA pricing stability.
• India’s total demand for Diketene and its derivatives is estimated at 25 kt per annum, while domestic production stands at around 39–40 kt per annum. Exports account for approximately 16–18 kt annually.
• The top four derivatives—EAA, MAA, Ethyl 4-Chloroacetoacetate, and Allyl Acetoacetate—together comprise nearly 75% of the Indian Diketene market share.
• With surging ethyl acetate prices and delays in ethanol and acetic acid shipments, the outlook for Diketene and its derivatives is expected to remain bullish for May 2025.

News: Inventory Building Advised as Seasonal Agrochemical Demand Nears

• WTI crude rose by 0.1% to $62.14/bbl
• Natural gas prices climbed 1.37% to $3.15/MMBtu
• FOB China Acetic Acid prices increased by $5 to $330/MT
• FOB US Ethanol prices declined 0.29% to $1.74/gallon

Expert Insights: Prices Expected to Remain Firm

EAA and MAA prices are expected to remain firm, driven by elevated raw material costs and robust downstream demand. Buyers are advised to strategically build inventories, with seasonal agrochemical demand expected to strengthen further from June 2025