Ethyl Acetate Market Disrupted: Raw Material Shortage Sparks Price Rise

Key Highlights

• All operating in the ₹66.5–₹67.5/kg range depending on customer location.
• Acetic acid shortage at Indian ports has pushed prices up ~15% since October.
• Ethanol cost escalation and import interruptions tightening domestic availability.
• Producers have reduced discounts from 5–6% to 1.5–2%, signalling seller dominance.
• Market expected to stay bullish through December, unless imports recover or major plants resume full output.

Ethyl Acetate Prices Increased in the Market

Ethyl acetate prices previously ranged between ₹63–₹65/kg in Western and Central regions, while the East commanded ₹67.5/kg — now all operating in the ₹66.5–₹67.5/kg range depending on customer location.

Accord Organics is currently operating at Rs. 66/kg Ex Supa.

Acetic Acid Shortage and Cost Pressures Tighten Domestic Supply

Acetic Acid Shortage:

The feedstock shortage at Indian ports has pushed prices up by ~15% since October, creating tight supply conditions.

Ethanol Cost Escalation:

Rising ethanol prices are increasing production costs for ester manufacturers.

Import Interruptions:

China-origin acetic acid supply interruptions are causing limited allocations for December–January, tightening availability.

Reduced Discounts:

Producers have cut trade discounts to 1.5–2% from earlier 5–6%, reflecting stronger seller control.

Possible Plant Shutdowns and Export Shift Impact Availability

Possible Shutdowns:

Rumors suggest GNFC and Jubilant could halt production; Accord Organics may face operational issues leading to stoppages.

Export Focused Shift:

Laxmi Organics reportedly has a strong export order book, has halted domestic volume sales, and is importing ethanol at higher costs, indicating profitability shift towards overseas demand.

Market Outlook & Opinion

The Indian ethyl acetate market continues to remain bullish supported by:

1. Strong consumption from packaging and printing ink sectors
2. Tight feedstock supply
3. Reduced domestic availability from key manufacturers
4. High regional price disparity supporting firm sentiment

Expectation: Bullish Trend Likely to Continue Through December on Tight Supply

Prices may remain elevated and possibly rise further through December, unless imports normalize or domestic units ramp up supply.