Robust Demand from Pharma and Packaging Sectors Drives Ethyl Acetate Price Hikes

Price

• This week, Ethyl Acetate prices increased by INR 2/kg, reaching INR 71/kg Ex Pune.
• Accordd Organics, India's largest single-location Ethyl Acetate producer, raised its prices by INR 1/kg due to a sharp rise in feedstock costs. The new price stands at INR 70.00/kg ex-Ahmed Nagar for spot dispatches with advance payment terms.
• GNFC, a major Acetic Acid manufacturer in the west, increased its Acetic Acid prices by INR 1/kg, setting the new price at INR 38/kg ex-Bharuch, also on advance payment terms.
• Ethyl Acetate bulk offers from Accordd Organics range from INR 70/kg ex-Ahmed Nagar, inclusive of 15 days of storage, with advance payment terms.
• These price hikes are attributed to higher conversion costs due to the increased prices of Acetic Acid and Ethanol.

Demand and Supply

• In July 2024, Ethyl Acetate prices were bullish as several Indian manufacturers revised their prices due to strong downstream demand and higher feedstock costs.
• In August, multiple manufacturers reduced production due to conversion losses from rising Acetic Acid and Ethanol costs. This reduction led to a shortage in the domestic market, causing a continued price surge in August 2024.
• Prices are expected to remain firm due to increased downstream demand. The bulk drug sector, a primary consumer, is experiencing robust demand due to seasonal factors.
• According to a leading Ethyl Acetate producer, demand looks strong for August and September, driven by production plans from bulk drug, packaging, inks, and curcumin manufacturers.
• India's monthly Ethyl Acetate demand is approximately 40 kilotons, with significant consumption from the Pharma, Paints, Coatings, Adhesives, Herbal Extraction, Packaging, and Inks sectors.
• Demand from the pharma bulk drug and packaging sectors is anticipated to surge until September 2024, driven by strong production plans that will likely boost the demand for ethyl acetate.
• Conversely, demand from the Paints and Coatings sector will remain low due to the monsoon season. However, demand from the Herbal Extraction, Packaging, and Printing Inks sectors is likely to grow due to seasonal factors.

News

• In the international market, upstream crude oil benchmark WTI prices increased by 0.85% to $76.84 per barrel.
• Natural gas prices increased by 0.75% to $2.14 per MMBtu. Feedstock Ethanol prices decreased by 1.28% to $1.78 per gallon.
• FOB China Acetic Acid prices were at $392 per metric ton.

Expert's Opinion

• Ethyl Acetate prices are expected to remain volatile due to rising feedstock costs. Additionally, strong demand from the Pharma and Packaging sectors is likely to keep prices on an upward trend. Buyers are advised to consider inventory opportunities as Ethyl Acetate prices are projected to remain bullish.