The Indian markets witnessed a spike in Acetic Acid prices on various accounts. In this review, the website gathers various forces impacting the price of the chemical which finds widespread applications in chemical intermediaries like Vinyl Acetatae Monomer (VAM), Ethyl Acetate, and in end user industries such as dye manufacturing.
Indianpetrochem gathers from various market sources that the demand for the chemical is moderate to strong amongst market participants in Gujarat, this would primarily be due to the location advantage of most end user industries in the region.
In the Indian market context, Acetic Acid isn't significantly used for manufacturing VAM as there aren't any domestic manufacturers in the country. On the contrary a significant portion of the chemical is used for manufacturing Ethyl Acetate, Purified Terephthalic Acid (PTA) as well as the dye manufacturing industry.
On these lines, its important to add that Methanol ,which is a feedstock for manufacturing Acetic Acid, has witnessed a bear rally due to surge in import supplies in the country. In order to counteract this, GNFC, which is a predominant supplier of Methanol within the country, has ceased its plant operation as of 15th April, 2014, in order to counteract the supply dynamics within the country. Its gathered from various market sources that the plant shall remain closed for 40 days or so.
In this context, a trader added, "There are limited stocks of GNFC manufactured Acetic Acid in the market, considering the fact that its one of the main domestic suppliers for the chemical in the country. Most traders speculate that production of Ethyl Acetate and plant shutdown of Methanol would be the main factors which indicate the reason for limited GNFC Acetic Acid stocks.
Considering the context of incoming imports, another trader added, "Steady import shipments of Acetic Acid are coming into the country, however, its important to add that more than 50% of these shipments are pre booked to enduser industries manufacturing Ethyl Acetate. This leaves space for considerable short supply of Acetic Acid from other enduser industries".
The bulk prices of Acetic Acid were around Rs. 39.5 per kg Ex- Mumbai at the beginning of the month. However, these prices have escalated to Rs. 44.5 per kg recently, backed on supply shortage.
Overall, its speculated that the prices should marginally rise in the foreseeable future as moderate demand cues maintains for Acetic Acid in the country.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Arjun Kumar (arjun.kumar @indianpetrochem.com)
Indianpetrochem gathers from various market sources that the demand for the chemical is moderate to strong amongst market participants in Gujarat, this would primarily be due to the location advantage of most end user industries in the region.
In the Indian market context, Acetic Acid isn't significantly used for manufacturing VAM as there aren't any domestic manufacturers in the country. On the contrary a significant portion of the chemical is used for manufacturing Ethyl Acetate, Purified Terephthalic Acid (PTA) as well as the dye manufacturing industry.
On these lines, its important to add that Methanol ,which is a feedstock for manufacturing Acetic Acid, has witnessed a bear rally due to surge in import supplies in the country. In order to counteract this, GNFC, which is a predominant supplier of Methanol within the country, has ceased its plant operation as of 15th April, 2014, in order to counteract the supply dynamics within the country. Its gathered from various market sources that the plant shall remain closed for 40 days or so.
In this context, a trader added, "There are limited stocks of GNFC manufactured Acetic Acid in the market, considering the fact that its one of the main domestic suppliers for the chemical in the country. Most traders speculate that production of Ethyl Acetate and plant shutdown of Methanol would be the main factors which indicate the reason for limited GNFC Acetic Acid stocks.
Considering the context of incoming imports, another trader added, "Steady import shipments of Acetic Acid are coming into the country, however, its important to add that more than 50% of these shipments are pre booked to enduser industries manufacturing Ethyl Acetate. This leaves space for considerable short supply of Acetic Acid from other enduser industries".
The bulk prices of Acetic Acid were around Rs. 39.5 per kg Ex- Mumbai at the beginning of the month. However, these prices have escalated to Rs. 44.5 per kg recently, backed on supply shortage.
Overall, its speculated that the prices should marginally rise in the foreseeable future as moderate demand cues maintains for Acetic Acid in the country.
By Ntasha Berry (ntasha.berry@indianpetro.com) and Arjun Kumar (arjun.kumar @indianpetrochem.com)
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