N Propanol Prices Adjust Downward Amidst Weak Demand; NPAC Follows Suit
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N Propanol and NPAC prices dropped ₹2/kg over the week, driven by weak demand and surplus inventory. Monthly demand stands at 5,000 metric tons for N Propanol and 3,500 metric tons for NPAC. While paints and coatings demand dipped, recovery is expected by mid-January 2025, with NPAC prices poised for an uptick.
Key Highlights
- Price Trends - N Propanol: ₹95/kg (Ex-Kandla, 60-day credit); ₹94/kg (advance payment).
- Demand Analysis - Moderate seasonal demand from packaging and inks; recovery expected in paints by January.
- Global Market Overview - Crude oil (WTI): $66.90 (+1.81%); Natural gas: $2.24/MMBtu (+0.42%).
- Expert Forecasts - NPAC prices expected to rise, driven by robust demand in packaging and printing ink industries.
Price Updates: Decline in N Propanol and NPAC Prices
- Importers have lowered N Propanol prices by ₹1/kg, settling at ₹95/kg (Ex-Kandla) on 60-day credit terms.
- Traders are offering N Propanol at ₹94/kg (Ex-Kandla) for advance payment. Consequently, downstream N Propyl Acetate (NPAC) prices have also dipped by ₹1/kg, now quoted at ₹97/kg (Ex-Kandla) for advance payment.
- On a week-on-week basis, prices of both N Propanol and NPAC have decreased by nearly ₹2/kg. This decline is attributed to weak market demand and surplus inventory at ports.
Demand Dynamics: Moderate Trends Across Key Sectors
- India's monthly demand for N Propanol is estimated at 5,000 metric tons, while NPAC demand stands at approximately 3,500 metric tons per month. Key consumers of NPAC include the paints, inks, packaging, bulk drug, and flavors and fragrances sectors.
- Seasonal demand from the packaging and ink industries remained moderate in December and is expected to maintain this trend until January 2025. However, demand from the paints and coatings sector saw a significant decline in December.
- Market participants anticipate a rebound in this segment during the second half of January 2025. Additionally, the growing production of alkyd resin-based paints in India is projected to drive future NPAC demand.
- A leading importer observed that NPAC replacement costs have risen due to an increase in acetic acid prices, potentially influencing market dynamics.
Global Market Insights: Mixed Feedstock and Crude Oil Trends
- On the global front, upstream crude oil prices, benchmarked by WTI, increased by 1.81% to $66.90 per barrel.
- natural gas prices edged up by 0.42% to $2.24/MMBtu.
- Feedstock prices showed mixed trends, with FOB China Acetic Acid prices at $345/MT, N Propanol at $1,100/MT, and NPAC at $1,275/MT.
Expert Opinion: Stability in N Propanol, Rising NPAC Prices
- Expert’s forecasts stability in N Propanol prices this week, while NPAC prices are likely to extend their upward trajectory, supported by robust demand from the packaging and printing ink sectors. Buyers are encouraged to capitalize on inventory opportunities as NPAC prices are expected to climb further in the near term.
Daily Market Report
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