Indian DEG Market Sees Price Adjustments as Paints & Agrochemicals Drive Demand
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DEG prices saw minor adjustments, with importers reducing rates by ₹1/kg while IOCL raised prices marginally. Despite ample inventories, stable demand from paints and agrochemicals kept the market balanced.
Key Highlights:
- Minor Price Adjustments: Importers reduced DEG prices, while IOCL increased rates slightly; RIL maintained stable pricing.
- Balanced Supply & Demand: India’s monthly demand of 25–26 kt is met by domestic production (9.25 kt) and imports (15–16 kt).
- Feedstock & Global Trends: Crude oil, natural gas, and ethylene prices saw marginal gains, influencing cost structures.
- Market Outlook: Analysts foresee short-term price volatility but expect demand from agrochemicals and paints to support future prices.
DEG Price Adjustments Amidst Shifting Market Dynamics
- Importers have reduced DEG prices by ₹1/kg, bringing the latest rates to ₹61++ Ex-Hazira and ₹60++ Ex-Kandla on 60-day payment terms.
- Meanwhile, domestic manufacturers have taken divergent pricing actions. Indian Oil Corporation Ltd (IOCL) has raised its DEG price by ₹0.20/kg to ₹54.95++ Ex-Paradeep and Ex-Panipat. In contrast, Reliance Industries Ltd (RIL), another key producer, has maintained its price at ₹56.50++ Ex-Jamnagar.
Supply & Demand Trends: Balancing Surplus and Seasonal Uptick
- The market remains well-supplied with ample DEG inventories at ports. Despite the surplus, stable demand and competitive domestic pricing have kept price movements in check.
- India’s monthly DEG demand is estimated at 25–26 kt, while domestic production from RIL and IOCL collectively stands at 9.25 kt/month. The remaining 15–16 kt requirement is met through imports.
- Key end-use sectors for DEG include Unsaturated Polyester Resins, Agrochemicals (Pesticides), Water-Based Paints, Rubber Compounding, and Plasticizers.
- Seasonal demand has picked up in the Paints and Agrochemicals sectors, while Rubber compounds and Plasticizers continue to see steady consumption.
Global Market Updates & Feedstock Price Movements
- In the global energy markets, WTI crude oil edged up by 0.14% to $67.12 per barrel, while natural gas prices saw a sharp increase of 4.95% to $4.61/MMBtu. FOB Singapore naphtha prices also gained $1, reaching $603/MT.
- On the feedstock front, FOB Korea Ethylene prices stood at $840/MT, while downstream DEG CFR China prices were recorded at $450/MT.
Market Insights & Future Price Outlook
Market analysts anticipate volatility in DEG prices due to an upswing in downstream demand. However, high inventory levels at ports may exert downward pressure in the near term. In the longer run, the expected rise in demand from the Pesticides and Paints industries could lend support to DEG prices.
Daily Market Report
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