Importers and Domestic Producers Hike N Butyl Acetate Prices as Demand Picks Up

Key Highlights

1. Price Update: Importers and domestic producers raised N Butyl Acetate prices by ₹1/kg, now at ₹88++ per kg (ex-Kandla, 60-day credit; ex-Ahmednagar, advance payment).
2. Demand Drivers: Rising seasonal demand from the paints and coatings industry.
3. Global Market Trends: FOB China prices dropped by 25 Yuan, settling at $940/MT.
4. Expert Outlook: Prices are expected to remain bullish due to robust demand and limited inventories.

N Butyl Acetate Prices Rise by ₹1/kg Amid Strong Demand

• The prices of N Butyl Acetate have been revised upwards by importers, increasing by ₹1/kg to reach ₹88++ per kg ex-Kandla on 60-day credit terms.
• Accord Organics, a key domestic producer, has also raised its base price by ₹1/kg, now offering at ₹88++ per kg ex-Ahmednagar on advance payment terms.
• The upward price movement is primarily driven by increased purchasing activity from the paints and coatings industry, coupled with supply constraints.
• On a weekly comparison, N Butyl Acetate prices have climbed by ₹2/kg, reflecting a positive market sentiment.

Seasonal Demand and Supply Constraints Drive Price Momentum

• Demand for N Butyl Acetate remained subdued earlier in December due to falling raw material costs, prompting manufacturers in the paints, coatings, and ink sectors to opt for spot purchases instead of stockpiling inventories.
• This week, the Asian benchmark FOB China prices for N Butyl Acetate registered a drop of 25 Yuan, settling at 6829 Yuan/MT, equivalent to $940/MT FOB China.
• In the Indian market, demand is anticipated to gain momentum and sustain until June 2025, primarily driven by seasonal requirements in the paints and coatings segment.
• India's monthly consumption of N Butyl Acetate is estimated at approximately 4 kt, with the paints and coatings industry being the dominant consumer. Additional demand comes from sectors such as bulk drugs, personal care, fragrances, and leather.

Global Benchmarks Show Mixed Signals Amid Subdued December Activity

• In the global market, the crude oil benchmark WTI recorded a marginal decline of 0.27%, closing at $74.46 per barrel, while natural gas prices plunged by 6.51%, reaching $3.76/MMBtu.
• Shanghai SECCO Petrochemical has again increased its Acrylonitrile (ACN) weekly Prices in China by CNY 300/MT and assessed at CNY 12,000/MT, ex-tank basis.
• Styrene Monomer Prices assessed stable at US$ 1040/- per MT FOB Korea basis.
• Methanex has announced its February Methanol Asian Posted Contract Price (APCP) assessed at US$ 420/MT in Canada.
• Dow has delayed the maintenance work at its Cracker due to an effort to save costs for the current fiscal year, the Cracker was due to get underway in March, 2025. The Cracker is located in Terneuzen, Netherlands with Propylene production capacity of 905,000 Tons/Year and Ethylene capacity of 1.825 Million Tons/Year.

Experts Insights: Bullish Market Outlook for N Butyl Acetate in 2025

• Expert anticipates that N Butyl Acetate prices will maintain a bullish trend this week, driven by strong demand from key consumers in the paints and coatings industry and limited inventory levels at ports. 
• Buyers are advised to capitalize on inventory opportunities as seasonal demand gains traction.