Feedstock Rally and Low Plant Run Rates Push Ethyl Acetate Prices Higher

Key Highlights

• Price Hike: Accordd Organics revised Ethyl Acetate prices to ₹68++/kg (Ex-Ahmednagar) due to a 5% rise in Acetic Acid.
• Production Cuts: Reduced operating rates at plants owing to poor conversion economics.
• Demand Recovery: Rising consumption of paints, coatings, and inks is boosting solvent demand.
• Feedstock Pressure: Limited port inventories and vessel delays drive acetic acid prices to rise.

Chemical Price: Accordd Organics Increased Ethyl Acetate Prices

• Accordd Organics Pvt Ltd, a key domestic producer, has increased its Ethyl Acetate prices by ₹2/kg, revising the offer to ₹68++ per kg (Ex-Ahmednagar) on advance payment terms. 
• The hike comes amid a sharp rise in feedstock costs, with domestic Acetic Acid prices climbing nearly 5% since the last week of March 2025, intensifying cost pressures for manufacturers.
• Most Ethyl Acetate plants are currently running at reduced capacity, primarily due to poor conversion economics.
• Bulk buyers are reportedly building inventories in anticipation of further price escalations. On a week-on-week basis, Ethyl Acetate prices have moved up by ₹2/kg.

Chemicals Supply & Demand: April Shows Firming Sentiment

• In the latter half of March 2025, Ethyl Acetate prices saw minor corrections due to lower purchase activity amid the financial year-end. However, April has seen a shift in sentiment, with producers cutting operating rates due to eroding conversion margins. 
• Market participants expect the sustained rise in Acetic Acid and Ethanol prices to exert additional pressure on the Acetyl chain, potentially resulting in steeper price increases.
• Acetic Acid prices surged by around 5% this week, largely driven by limited inventories at ports and vessel delays. Additionally, a rise in downstream production of printing inks and packaging materials has lent further support to the bullish tone in the Acetyls market.
• The continued uptrend in Acetone prices has also encouraged paint and coatings manufacturers to switch to Ethyl Acetate as a cost-effective alternative, further boosting solvent demand due to this arbitrage opportunity.

Chemicals News: Global Market Snapshot

• In global energy markets, crude oil benchmark WTI declined by 3.30% to $64.77 per barrel, while natural gas prices also fell by 1.36% to $4.08/MMBtu.
• Feedstock movements have been mixed: FOB China Acetic Acid prices edged up by $5 to $360/MT, while US FOB Ethanol prices dipped by 1.10% to $1.80 per gallon.

Expert Opinion: Expect Volatility Through the Week

• Experts anticipate continued volatility in the Ethyl Acetate market through this week, with the potential for further upward movement supported by climbing feedstock prices and curtailed domestic production rates. 
• Seasonal demand from the paints, coatings, and inks sectors is expected to keep trading activity firm through June 2025.