Geopolitics of crude oil and rising domestic demand sets Toluene prices in India on a bull run

Intensified geopolitical tension between Europe and Russia, along with falling stock inventories for crude oil in North America, has led to volatility in crude oil prices this week. Resultantly, the prices of Toluene, which is one of the most traded aromatic, has gained moment in Indian and International markets. In India, strong cyclical demand for the solvent has lead to expectation that prices may gain momentum in the future.

Onset of Monsoon pulls down PVC prices

Indian polymer market is going through a thin trading atmosphere for PVC material from the last few days. Volatility in the Rupee and depressed buying sentiments are some of the factors responsible for the slide in demand for the PVC material. The other factor that effected the demand for the PVC  resin was heavy rain in several parts of India during this week, and higher offer price resisted by Indian importers. Traders as well as buyers are expecting strengthening in demand after the monsoon end.

Weak demand from specialized paint drags down MIBK prices

Bulk price of MIBK (Methyl Isobutyl Ketone) in Mumbai market have been on a downward trend since the beginning of July, 2014. The bulk price Ex-Mumbai reached highs of Rs. 139 per kg before declining to current incoming price to Rs. 124 per kg. The prices moved on account of plug in previous short supply position.

Imports to plug the domestic short supply situation of MEG in India

The demand for MEG is strong to moderate across major markets in India. Despite considerable manufacturing capacity for MEG in India, the domestic market at present is dominated by imports as most manufacturers captively consume the chemical or are under planned maintenance.

Booking price of SM to India expected to go down in near future

Styrene Monomer (SM) prices in India are completely reliant on price fluctuations of the Asian benchmark prices. In turn, the benchmark prices overseas are impacted significantly by Benzene prices, its feedstock. International Benzene prices have been volatile since last month due to the crude oil price fluctuations caused by the political insurgency in Iraq. While the prices of Benzene have stabilized on this account, the international prices of Styrene are yet to move back to original trading range.

New Union Budget positively impacts PA market; Aromatics remain unaffected

On 11th July, 2014, the Indian government announced the budget for the coming financial year, whereby, basic custom duty reduction was announced for a host of petrochemical and petrochemicals feedstock. In order to comprehend the effect of this on the Aromatics market in India, Indianpetrochem evaluated the impact of custom duty revision for Reformat and Ortho Xylene.

Short supply and volatility plagues IPA market in India

IPA prices have particularly been very volatile since the past few weeks in the Indian market on account of limited stock availability. To this effect, there are no offer for imports, Ex-Kandla, for the chemical ever since the last week of June. Prior to this, IPA prices touched highs of Rs. 130 per kg Ex- Kandla.

MEG bulk prices in India likely to rise if indigenous short supply situation persists

Since the past few months, the supply of indigenously manufactured MEG has been limited due to domestic plant turnarounds and captive consumption. As such, the Indian market has become significantly reliant on imports, causing bulk prices to gradually rise from levels of Rs. 72 per kg to current price of Rs. 76 per kg Ex- Mumbai, over the last month.

Acetone prices decline as more than 10,000 MT of inventories build up at Indian ports

Despite rising price momentum for Benzene in Asia, the price of Acetone, one of its downstream derivative, hasn't moved significantly in the region. While, Phenol prices have skyrocketed due to a shortfall in supply, as most manufactures have cut down their operating rate due to squeeze in margins.