Indian Ethyl Acetate Prices Surge on Feedstock Crunch and Supply Disruptions

Key Highlights

• Price Hike Alert: Accordd, Laxmi Organics, and Jubilant have raised prices by ₹3–4/kg due to rising input costs and supply constraints.
• Raw Material Disruption: Conflict in the Middle East has delayed Methanol and Acetic Acid shipments, squeezing Ethyl Acetate production. 
• Demand Rebound: Switching from Acetone and robust demand from pharma, coatings, and inks sectors is fueling price support.
• Price Outlook: Tight inventories and firm seasonal demand could push Ethyl Acetate prices beyond ₹75/kg in the near term.

Latest Price Revisions Across Domestic Producers

• Accordd Organics Pvt Ltd, a key domestic producer of Ethyl Acetate, has raised its prices by ₹3/kg. The company is now offering material at ₹70++ per kg (Ex-Ahmednagar) on advance payment terms.
• Other major producers, including Laxmi Organics and Jubilant, have also increased their Ethyl Acetate prices by ₹4/kg today. Meanwhile, most traders are holding back fresh offers.
• The price hike comes amid rising feedstock costs and delayed shipments, driven by the ongoing Iran-Israel conflict. The geopolitical tension has disrupted Methanol supply chains across Asia, creating uncertainty in the overall Acetyls market.
• Production of Ethyl Acetate has also been impacted, with many plants running at reduced capacities due to limited availability of Acetic Acid.
• According to a leading Acetic Acid importer, the war-related supply disruptions are significantly altering supply-demand dynamics. 
• Given the tightness in the market, producers are avoiding large-volume supply commitments. 
• In addition, the recent surge in ocean freight rates is expected to further push up input costs, as per domestic Ethyl Acetate manufacturers.

Supply Constraints from Feedstock and Freight Challenges

• Ethyl Acetate prices saw a notable increase in May 2025, as several producers scaled back output due to raw material shortages. Delayed shipments and scheduled turnarounds at Laxmi Organics and GNFC further tightened supply.
• While buyers are actively planning inventory restocking, manufacturers remain cautious in committing large volumes in June 2025. The market continues to grapple with uncertainty over input costs and raw material supply disruptions linked to the Middle East conflict.
• Cost pressures have been further compounded by the sharp rise in Ethanol prices, increased ocean freight, and the shortage of Acetic Acid. Some market participants believe that Ethyl Acetate prices could soon touch ₹75/kg Ex-location, which now appears increasingly likely.
• Domestic Acetic Acid prices rose by around 3% this week, supported by low inventory levels at Indian ports and ongoing vessel delays. Strong demand from downstream industries such as bulk drugs, printing inks, and packaging materials is also adding bullish momentum to the Acetyls value chain.
• With Acetone prices continuing to climb, many paints and coatings manufacturers are switching to Ethyl Acetate as a more economical solvent, further boosting demand. This trend is also supported by favourable arbitrage opportunities.

News: Port Inventory, Import Delays & Raw Material Inflation

• In global energy markets, WTI crude futures fell by 0.52% to $73.11 per barrel. 
• Meanwhile, natural gas futures edged up by 0.53% to $4.10 per MMBtu.
• On the feedstock front, FOB China Acetic Acid prices were assessed at around $340/MT.
• US FOB Ethanol prices were quoted at $1.66 per gallon.

Expert Outlook: Volatility to Continue Amid Tight Supply Chain

• Expert expects Ethyl Acetate prices to remain volatile through June 2025, driven by high feedstock costs, limited raw material availability, and reduced production rates.
• Seasonal demand from key downstream sectors, including pharmaceuticals, paints, coatings, and printing inks, is likely to support active trading and firm price sentiment into July 2025.