Domestic Ethyl Acetate Producers Hike Prices Amid Feedstock Shortage and Shutdowns

Highlights

1. Accordd Organics revised price to ₹70++/kg; others hiked by ₹4/kg.
    
2. Ethanol replacement prices up 7%, Acetic Acid up 6% in April.
    
3. Laxmi Organics to shut from May 14–28 for maintenance.
    
4. Demand boosted by Acetone substitution and strong pharma/offtake sectors.

Accordd Organics Increases Ethyl Acetate Price

• Accordd Organics Pvt Ltd, a key domestic manufacturer, has increased its Ethyl Acetate prices by ₹1/kg, revising offers to ₹70++ per kg (Ex-Ahmednagar) on advance payment terms.
• Meanwhile, most traders are holding back fresh offers, as other major producers such as Laxmi Organics and Jubilant have also raised Ethyl Acetate prices by ₹4/kg today.
• This price hike follows rising feedstock costs, with Ethanol replacement prices up by 7% and domestic Acetic Acid prices witnessing a sharp 6% surge in April 2025, thereby exerting considerable cost pressure on Ethyl Acetate manufacturers.
• Adding to supply-side constraints, several production units are currently operating at reduced capacities due to limited availability of Acetic Acid.
• Laxmi Organics has further announced an annual maintenance shutdown scheduled from 14th May to 28th May 2025, which is expected to tighten market availability.
• A leading Acetic Acid indentor commented that the ongoing geopolitical tensions and retaliatory tariffs between the US and China have disrupted feedstock supply chains, contributing to the present volatility.
• Given these conditions, producers are refraining from entering large-volume supply commitments. Additionally, the recent surge in sea freight rates is expected to further inflate input costs, according to domestic Ethyl Acetate producers.

Production Curtailments and Shutdowns Tighten Ethyl Acetate Supply

• In April 2025, Ethyl Acetate prices registered a significant upward movement as manufacturers reduced output due to raw material shortages caused by shipment delays and GNFC’s scheduled annual turnaround.
• While buyers are actively planning inventory purchases, producers are reluctant to commit large volumes, citing uncertainty in the market, fluctuating input costs, and ongoing feedstock supply constraints.
• The steep rise in Ethanol prices and ocean freight rates has further aggravated cost pressures for acetyl-based manufacturers. Some market players anticipate that freight costs may revisit the highs seen during the COVID-19 period, as shipment rerouting amid tariff conflicts extends delivery timelines and widens the cost delta.
• Domestic Acetic Acid prices increased by around 2% this week, supported by low inventory levels at ports and continued vessel delays. Robust demand from downstream sectors such as bulk drugs, printing inks, and packaging materials has also strengthened bullish sentiment in the Acetyls value chain.
• With Acetone prices continuing their upward trend, manufacturers in the paints and coatings segment are increasingly shifting towards Ethyl Acetate as a more economical solvent option. This substitution is boosting overall demand, aided by favourable arbitrage opportunities.

Chemical News and Global Market Trends

• In the global energy markets, benchmark WTI crude futures declined by 1.87% to $57.19 per barrel, while natural gas futures edged up by 1.35% to $3.67/MMBtu.
• On the feedstock side, FOB China Acetic Acid prices were assessed in the range of $330–335/MT, while US FOB Ethanol prices stood at $1.78 per gallon.

Expert Insights: Continued Volatility Projected in Ethyl Acetate Market

• OfBusiness anticipates continued price volatility in the Ethyl Acetate market through the remainder of the week, underpinned by strong feedstock costs, tight raw material availability, and subdued domestic production rates.
• Seasonal demand from key downstream sectors such as pharmaceuticals, paints, coatings, and inks is expected to support healthy trading momentum well into June 2025.