Indian Acetone Market Sees Price Correction Amid Weak Bulk Drug Demand
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Acetone prices in India declined slightly due to weak demand from bulk drug manufacturers and lower replacement costs for importers. While the pharmaceutical sector saw a slowdown, demand from the paints, coatings, and diacetone alcohol sectors remained stable. Global crude oil and feedstock price trends continue to influence market sentiment.
Key Highlights:
- Price Correction: Acetone prices dropped by ₹1/kg across key locations, driven by sluggish demand from bulk drug manufacturers.
- Demand Trends: Pharmaceutical intermediate demand weakened, but seasonal consumption from paints and coatings remained steady.
- Supply Fundamentals: Domestic acetone production meets around 50% of demand, with import reliance persisting.
- Market Outlook: Price volatility is expected, influenced by global feedstock costs and fluctuating demand from key sectors.
Acetone Price Trends
- Acetone prices in the Indian market witnessed a marginal decline as importers reduced their offers by ₹1/kg. Prices were revised to ₹72.00/kg ex-Kandla and ₹73.00/kg ex-Mumbai on 60-day credit terms.
- Meanwhile, domestic producer Deepak Phenolics also adjusted its offers downward, quoting ₹70.00/kg ex-Dahej on similar credit terms.
- The price reduction is primarily attributed to sluggish demand from bulk drug manufacturers and a decline in replacement costs for importers.
Acetone Prices Decline Amid Weak Bulk Drug Demand
- Acetone demand remained moderate in January 2025; however, February has seen a notable weakening in downstream consumption, particularly from bulk drug manufacturers.
- Key pharmaceutical intermediates such as Paracetamol, Ibuprofen, Amoxicillin, and Carbamazepine have experienced a slowdown in demand, impacting overall market sentiment.
- On the other hand, seasonal demand from the paints and coatings sector, which picked up in January 2025, has remained stable in February, lending some support to acetone consumption.
- Additionally, demand for diacetone alcohol has shown improvement this month, supported by stable production in key downstream sectors, including paints, coatings, inks, personal care, and adhesives.
- India’s total acetone consumption is estimated at approximately 23,000–25,000 tons per month. Domestic production capacity stands at around 12,000 tons per month, with HOCL and Deepak Phenolics being the sole manufacturers in the country.
Chemical Market News: Domestic and Global Updates
- Market Developments
1. In the international market, upstream crude oil and natural gas prices have seen an uptick.
2. WTI crude oil benchmark rose by 0.50% to $71.64 per barrel.
3. Natural gas prices increased by 1.87% to $3.69 per MMBtu. - Feedstock price trends:
1. FOB Korea benzene was assessed at $917/ton.
2. FOB Korea propylene stood at $835/ton. - In the downstream segment, CFR China acetone prices were assessed at $780/ton, reflecting global market trends.
Expert Opinion on Chemical Market Outlook
- Acetone prices are expected to remain volatile in the near term, influenced by fluctuating demand from key downstream industries and movements in global feedstock prices.
- Market participants are closely monitoring price trends and supply fundamentals to gauge future pricing direction.
Daily Market Report
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