Indian Acetone Prices Surge Amid Strong Demand and Increased Prices by Importers

Key Highlights:

1. Price Surge – Acetone priced at ₹78.00/kg ex-Kandla, ex-Mumbai, and ex-Dahej.
2. Demand Growth – Paints, coatings, and pharma industries drive price hikes.
3. Supply Outlook – India consumes ~25,000 MT/month, with domestic production at 12,000 MT.
4. Global Trends – Crude oil prices up 0.25%, while natural gas dipped 0.87%.
5. Market Expectation – Volatility likely as feedstock costs and demand fluctuate.

Acetone Prices Surge by ₹3/kg Amid Strong Market Demand

• Acetone prices in the Indian market witnessed a sharp increase today, as importers raised their offers by ₹3/kg. The revised prices stand at ₹78.00/kg ex-Kandla and ₹78.00/kg ex-Mumbai on a 60-day credit basis.
• Meanwhile, domestic producer Deepak Phenolics also adjusted its prices , now offering at ₹78.00/kg  (up 3rs/kg) ex-Dahej on a cash basis.
• The price hike is primarily attributed to rising demand from the paints and coatings sector, coupled with increased purchasing activity from bulk drug manufacturers. Additionally, a surge in feedstock prices and higher import replacement costs have contributed to the price rise.

Supply & Demand: Paints, Coatings, and Pharma Drive February Demand Growth 

• Acetone demand remained strong in February 2025 and is expected to continue its robustness in March 2025, as per a leading domestic manufacturer. Key pharmaceutical intermediates such as Paracetamol, Ibuprofen, Amoxicillin, and Carbamazepine, which experienced a slowdown in January 2025, have shown a recovery since mid-February, creating positive market sentiment, according to traders.
• Seasonal demand from the paints and coatings sector, which gained momentum in January 2025, remained stable and strong through February and is expected to persist in March, further supporting acetone demand.
• Additionally, demand for diacetone alcohol has shown improvement this month, supported by stable production in key downstream sectors such as paints, coatings, inks, personal care, and adhesives.
• India's total acetone consumption is estimated at around 23,000–25,000 tons per month. Domestic production capacity stands at approximately 12,000 tons per month, with HOCL and Deepak Phenolics being the only manufacturers in the country.

Global Feedstock Prices: Impact on Acetone Trends 

1. Market Developments
   a. In the international market, crude oil and natural gas prices have seen an uptick.
   b. WTI crude oil benchmark rose by 0.25% to $69.93 per barrel.
   c. Natural gas prices declined by 0.87% to $3.80 per MMBtu.
2. Feedstock Price Trends
   a. FOB Korea benzene was assessed at $879/tonne.
   b. FOB Korea propylene stood at $820/tonne.
   c. In the downstream segment, CFR China acetone prices were assessed at $780/tonne, reflecting global market trends.

Expert Opinion: Price Volatility Likely to Persist

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.