Ethyl Acetate Market Sees Steady Prices Amid Supply Constraints and Rising Demand

Price

• Ethyl Acetate prices have remained steady in the Indian domestic market, with strong sales activity keeping the price at INR 71.50/kg on an Ex-Pune basis.
• Accordd Organics, the nation’s largest single-location producer of Ethyl Acetate, has set its price at INR 71.50++ on an ex-Ahmed Nagar basis for spot dispatches, requiring advance payment terms.
• GNFC, a significant Acetic Acid manufacturer in western India, increased its Acetic Acid prices by INR 1/kg last week, bringing the rate to INR 38/kg ex-Bharuch.
• This price hike had a ripple effect, prompting importers to raise Acetic Acid prices by INR 0.50/kg to INR 38.50++ ex-Mumbai and INR 38.00++ ex-Kandla, both on advance payment terms.
• Bulk offers of Ethyl Acetate from Accordd Organics are currently on hold, with a new price revision expected to be announced on August 16, 2024.
• The recent price increases are largely due to higher conversion costs and growing buying interest.

Demand and Supply

• In July 2024, Ethyl Acetate prices remained strong as several Indian producers adjusted their pricing in response to robust downstream demand and rising feedstock costs.
• In August, many manufacturers scaled back their production plans due to ongoing losses caused by the rising costs of Acetic Acid and Ethanol. This reduction in output has led to a shortage in the domestic market.
• Prices are anticipated to remain firm due to increasing downstream demand. The bulk drug sector, a major consumer of Ethyl Acetate, is seeing strong demand driven by seasonal factors and solid production plans.
• According to a leading Ethyl Acetate producer, demand is expected to stay robust through August and September, bolstered by production activities in the bulk drug, packaging, inks, and curcumin sectors.
• India’s monthly demand for Ethyl Acetate is approximately 40 kilotons, with significant consumption across the Pharma, Paints, Coatings, Adhesives, Herbal Extraction, Packaging, and Inks sectors.
• Demand from the Pharma bulk drug and Packaging sectors is projected to rise through September 2024, supported by strong production plans that are likely to further boost Ethyl Acetate demand.
• On the other hand, demand from the Paints and Coatings sector is expected to remain subdued due to the ongoing monsoon season. However, demand from the Herbal Extraction, Packaging, and Printing Inks sectors is likely to increase due to seasonal factors.

News

• In the international market, upstream crude oil benchmark WTI prices rose by 0.32% to $78.59 per barrel.
• Natural gas prices increased by 0.62% to $2.16 per MMBtu.
• Meanwhile, feedstock Ethanol prices declined by 1.40% to $1.76 per gallon.
• FOB China Acetic Acid prices recorded at $392 per metric ton.

Expert's Opinion

It is expected that Ethyl Acetate prices will remain volatile, primarily due to rising feedstock costs. Additionally, strong demand from the Pharma and Packaging sectors is likely to sustain the upward price trend. Buyers are advised to consider inventory opportunities as Ethyl Acetate prices are projected to remain bullish in the near term.