Ethyl Acetate Prices Climb as Acetic Acid Tightens;  and Tariff Woes Add Pressure

Key Highlight Points

• Price Hike: Accordd Organics revises Ethyl Acetate to ₹70++/kg.
• Supply Crunch: GNFC shutdown + import delays disrupt Acetic Acid flow.
• Input Cost Surge: Acetic Acid prices up 6% since late March.
• Demand Drivers: Shift from Acetone boosts Ethyl Acetate use in coatings & inks.

Price Revision by Accordd Organics Amid Rising Feedstock Costs

• Accordd Organics Pvt Ltd, a prominent domestic producer, has raised its Ethyl Acetate prices by ₹1/kg, revising offers to ₹70++ per kg (Ex-Ahmednagar) on an 60 days payment basis.
• Most traders are currently withholding fresh offers, anticipating a potential price revision from other producers such as Laxmi Organics and Jubilant.
• The upward revision comes amid escalating feedstock costs, with domestic Acetic Acid prices registering a sharp 6% increase since the last week of March 2025. This has significantly intensified cost pressures for Ethyl Acetate manufacturers.
• Several Ethyl Acetate production units are operating at reduced capacities due to limited availability of Acetic Acid.
• Additionally, GNFC's annual maintenance shutdown this month and delays in Acetic Acid imports—largely attributed to geopolitical tensions and retaliatory tariffs between the US and China—have further tightened feedstock supply.
• Given the current market conditions, manufacturers are refraining from committing to bulk supply deals. A concurrent spike in sea freight rates is expected to impact input costs, according to domestic Ethyl Acetate producers.

Market Faces Supply Disruptions Due to GNFC Shutdown & Tariff-Led Delays

• During the first half of April 2025, Ethyl Acetate prices recorded a significant uptick as producers curtailed output in response to raw material shortages caused by shipment delays and GNFC’s annual turnaround.
• Buyers are keen to plan their inventories; however, producers are showing reluctance to offer large volumes due to prevailing market uncertainty, fluctuating input costs, and persistent feedstock constraints.
• The steep rise in ocean freight rates is adding another layer of cost volatility for acetyl product manufacturers. Some market participants anticipate that freight rates could revisit highs last seen during the COVID-19 period, as shipment rerouting due to tariff conflicts may widen the delta and extend transit times.
• Acetic Acid prices rose by approximately 2% this week, driven by low inventory levels at ports and continued vessel delays. Moreover, robust demand from downstream segments such as printing inks and packaging materials has reinforced bullish sentiment in the Acetyls market.
• The ongoing uptrend in Acetone prices is prompting manufacturers in the paints and coatings segment to shift towards Ethyl Acetate as a more economical alternative, further strengthening solvent demand amid favorable arbitrage opportunities.

Freight Costs Surge; Buyers Struggle with Inventory Planning

• In the international energy complex, benchmark WTI crude futures edged up by 0.40% to $63.04 per barrel, while natural gas futures slipped by 0.32% to $2.92/MMBtu.
• On the feedstock front, FOB China Acetic Acid prices were assessed at $330–335/MT, while US FOB Ethanol prices stood at $1.75 per gallon.

Expert Opinion: Ethyl Acetate Demand Strengthened by Seasonal Coatings

• Expert expects continued price volatility in the Ethyl Acetate market through the remainder of the week, supported by firming feedstock costs, raw material tightness, and reduced domestic operating rates.
• Seasonal demand from key downstream sectors such as paints, coatings, and inks is likely to sustain trading momentum through June 2025.