The bulk price of acetone gained weight this week on account of demand- supply imbalance for the solvent in major trading hubs in India. This review considers the impact of booking price fluctuations, latest demand moment and bulk price movements of the chemical in the Indian market.
This week, the bulk price of Acetone gained weight by Rs. 1.5-2 per kg to current price range of Rs. 79-80 per kg (exclusive of all taxes), as demand outpaced the supply (mainly for imports) in the Mumbai and Ahmedabad market. Its understood from various traders that demand from Pharmaceutical company is the primary driver of current demand momentum in the country.
"Previously, the supply outpaced the demand, whereby the bulk prices were in the range of Rs. 76-77 per kg (exclusive of all taxes) in the past few days. However, the sudden surge in demand has increased prices to current trading range of Rs. 79-80 per kg (exclusive of all taxes)", a Mumbai based trader informed Indianpetrochem.
The website notes from its price database that these prices are not at an all time high. On the contrary, current prices are at a lower range (below Rs. 80 per kg), when quarterly review of prices is considered. In similar fashion, SI group has continuously been conducting a downward price revision of its Ex-works price for the past few months. SI Group's basic price dwindled from highs of Rs. 92 per kg to Rs. 87 per kg in April. Thereafter the prices fell to Rs. 82 per kg in the last week of March, and as of first week of June the ex-work price were revised to Rs. 80 per kg.
However, the website gathers from a market insider in Ahmedabad that the currently SI Group's Acetone is available at Rs. 77 per kg (exclusive of all taxes), which is slightly cheaper than imports. However, the stock position of imports is much more than that of SI group.
Another factor which has impacted the price of Acetone is the hike in booking price. A prominent importer added, " The booking price of Acetone has increased from $1,150 per metric tonne to $1,170 per metric tonne; this price hike has been passed to the buyers at present".
Overall, the current demand momentum from pharmaceutical industry has been supporting the recent price hike for Acetone in India.
This week, the bulk price of Acetone gained weight by Rs. 1.5-2 per kg to current price range of Rs. 79-80 per kg (exclusive of all taxes), as demand outpaced the supply (mainly for imports) in the Mumbai and Ahmedabad market. Its understood from various traders that demand from Pharmaceutical company is the primary driver of current demand momentum in the country.
"Previously, the supply outpaced the demand, whereby the bulk prices were in the range of Rs. 76-77 per kg (exclusive of all taxes) in the past few days. However, the sudden surge in demand has increased prices to current trading range of Rs. 79-80 per kg (exclusive of all taxes)", a Mumbai based trader informed Indianpetrochem.
The website notes from its price database that these prices are not at an all time high. On the contrary, current prices are at a lower range (below Rs. 80 per kg), when quarterly review of prices is considered. In similar fashion, SI group has continuously been conducting a downward price revision of its Ex-works price for the past few months. SI Group's basic price dwindled from highs of Rs. 92 per kg to Rs. 87 per kg in April. Thereafter the prices fell to Rs. 82 per kg in the last week of March, and as of first week of June the ex-work price were revised to Rs. 80 per kg.
However, the website gathers from a market insider in Ahmedabad that the currently SI Group's Acetone is available at Rs. 77 per kg (exclusive of all taxes), which is slightly cheaper than imports. However, the stock position of imports is much more than that of SI group.
Another factor which has impacted the price of Acetone is the hike in booking price. A prominent importer added, " The booking price of Acetone has increased from $1,150 per metric tonne to $1,170 per metric tonne; this price hike has been passed to the buyers at present".
Overall, the current demand momentum from pharmaceutical industry has been supporting the recent price hike for Acetone in India.
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