The market price for Aniline in India has been very volatile over the past couple of months due to supply shortage of imported goods in the market. Indianpetrochem spoke to some industry participants on this matter and understood the market dynamics for the chemical across various trading hubs in India.
A Delhi based trader reported to the website that the demand for Aniline was sluggish in the Delhi due to Holi festivities, like the demand for other petrochemicals. Our market reports added that since the past few months, the demand for Aniline has been dull in Delhi market.
On the other hand our conversations with traders in Mumbai and Ahmedabad market revealed that the demand for Aniline has been good and remains to be strong in India since the past few months, however, the short supply situation, specially for imports has made the prices very volatile.
In order to explore this demand - supply imbalance, Indianpetrochem spoke to another trader in the market who provided clarity on this matter, " Levy of anti-dumping duty on imports for Aniline have made imports expensive than domestically manufactured Aniline As such importers in the country are refraining from building their stock inventories on a regular basis, hence the supply shortage".
On May, 2012, the Indian government decided to levy anti-dumping duty of $ 110.72 per metric tonne on imports which would cease after five years.
An optimistic trader in the Mumbai market told the website that, " the short supply situation should hopefully end within the coming two months which will stabilise the prices. While another trader in the market felt that the prices will be volatile in the coming months and even move northwards due to weak imports and strong demand.
Currently the bulk price of Aniline ex-kandla is Rs. 135 per kg (exclusive of all taxes). Meanwhile, another trader in the Mumbai market went on to quote an exorbitant price of Rs. 170 per kg (exclusive of all taxes) for the chemical, citing short supply in the market to be the main reason for the price.
Main manufactures for Aniline in India are Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) and Hindustan Organic Chemical (HOCL). However, HOCL's unit in Maharashtra for Aniline hasn't been operational since last year.
In FY 2012- 2013, GNFCs capacity utilization was 119.9% for Aniline, whereby the total manufacturing was 41, 717 metric tonne out of which 104. 46 metric tonne was exported. This goes to prove that almost entire production capacity is utilized domestically. In 2012- 2013, the consumption of Aniline in India was 69,480 metric tonne, according to Ministry of Chemical and Fertilizers.
Overall, the demand for the chemical is strong in India however the price will continue to fluctuate due to supply shortage of imports. It is speculated by market participants that as long as the anit-dumping duties are there for imports, the prices will be volatile.
In India, Aniline is used as an intermediate in rubber chemicals, drug and drug intermediaries and dye industry.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Arjun Kumar (arjun.kumar@indianpetrochem.com)
A Delhi based trader reported to the website that the demand for Aniline was sluggish in the Delhi due to Holi festivities, like the demand for other petrochemicals. Our market reports added that since the past few months, the demand for Aniline has been dull in Delhi market.
On the other hand our conversations with traders in Mumbai and Ahmedabad market revealed that the demand for Aniline has been good and remains to be strong in India since the past few months, however, the short supply situation, specially for imports has made the prices very volatile.
In order to explore this demand - supply imbalance, Indianpetrochem spoke to another trader in the market who provided clarity on this matter, " Levy of anti-dumping duty on imports for Aniline have made imports expensive than domestically manufactured Aniline As such importers in the country are refraining from building their stock inventories on a regular basis, hence the supply shortage".
On May, 2012, the Indian government decided to levy anti-dumping duty of $ 110.72 per metric tonne on imports which would cease after five years.
An optimistic trader in the Mumbai market told the website that, " the short supply situation should hopefully end within the coming two months which will stabilise the prices. While another trader in the market felt that the prices will be volatile in the coming months and even move northwards due to weak imports and strong demand.
Currently the bulk price of Aniline ex-kandla is Rs. 135 per kg (exclusive of all taxes). Meanwhile, another trader in the Mumbai market went on to quote an exorbitant price of Rs. 170 per kg (exclusive of all taxes) for the chemical, citing short supply in the market to be the main reason for the price.
Main manufactures for Aniline in India are Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) and Hindustan Organic Chemical (HOCL). However, HOCL's unit in Maharashtra for Aniline hasn't been operational since last year.
In FY 2012- 2013, GNFCs capacity utilization was 119.9% for Aniline, whereby the total manufacturing was 41, 717 metric tonne out of which 104. 46 metric tonne was exported. This goes to prove that almost entire production capacity is utilized domestically. In 2012- 2013, the consumption of Aniline in India was 69,480 metric tonne, according to Ministry of Chemical and Fertilizers.
Overall, the demand for the chemical is strong in India however the price will continue to fluctuate due to supply shortage of imports. It is speculated by market participants that as long as the anit-dumping duties are there for imports, the prices will be volatile.
In India, Aniline is used as an intermediate in rubber chemicals, drug and drug intermediaries and dye industry.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Arjun Kumar (arjun.kumar@indianpetrochem.com)
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