Ethyl Acetate Prices Remain Bullish: Supply Constraints and Rising Feedstock Costs
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Domestic manufacturers have increased the price of ethyl acetate by Rs 4/kg over two consecutive days, reaching Rs 70.00/kg on an ex-Supa basis, as offered by Accord Organics on advance payment terms for October shipments.
Chemical Price
- Domestic manufacturers have increased the price of ethyl acetate by Rs 4/kg over two consecutive days, reaching Rs 70.00/kg on an ex-Supa basis, as offered by Accord Organics on advance payment terms for October shipments.
- Other manufacturers in Pune are offering ethyl acetate at around Rs 70.25/kg, also on advance payment terms.
- Bulk deals are being executed at Rs 69.50/kg and above on an ex-Pune basis with 60-day credit terms. Week-on-week, ethyl acetate prices have risen by Rs 4/kg.
- Future contracts for ethyl acetate for October and November shipments are trending higher, with prices ranging from Rs 70/kg and above to Rs 71/kg and above on an ex-plant basis with advance payment terms. This increase is attributed to the rising prices of ethanol and acetic acid.
Chemical Demand and Supply
- In August, ethyl acetate prices corrected due to weaker downstream demand, primarily caused by floods and heavy rainfall in Gujarat and Andhra Pradesh.
- In September, demand declined further due to the Ganesh Chaturthi holidays, prompting most manufacturers to reduce production rates, resulting in supply shortages in October 2024.
- Additionally, ongoing tensions between Iran and Israel have led to a surge in freight costs and raw material prices, prompting ethyl acetate manufacturers to increase their prices immediately.
- Demand from bulk drug manufacturers has been subdued this month due to scaled-down production plans. However, the packaging and printing ink sectors are experiencing robust demand due to the upcoming Diwali season.
- Demand from the herbal extraction and adhesives sectors has not met expectations.
- India's monthly demand for ethyl acetate stands at approximately 40,000 MT, with major consumers including the bulk drugs, packaging, inks, adhesives, extraction, paints, and coatings sectors.
Chemical News
- On the international front, the crude oil benchmark WTI has increased by 0.78%, reaching $74.28 per barrel. Ethanol prices in the US have fallen by 1.90% to $1.55/gallon.
- India’s Jubilant Ingrevia enters $300M agchem intermediate supply contract with global firm.
- China’s Aug butadiene imports more than double month over month, supplies from Europe are returning as an arbitrage window is opening again.
- Mitsui Chemicals resumes production at Osaka cracker following steam supply failure, plant with capacity for 455,000 metric tons per year of ethylene could not restart in August following scheduled maintenance.
Expert Opinion
- It is anticipated that ethyl acetate prices will remain bullish until December, driven by firm downstream demand from the packaging and printing inks sectors. Supply shortages are likely to keep ethyl acetate prices on the higher side.
- Increasing feedstock ethanol and acetic acid prices are expected to contribute to sustained price increases. Buyers are advised to explore inventory opportunities in light of these market dynamics.
Daily Market Report
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