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.
On 1st July, 2014, SI group, the only active manufacturing facility for Phenol and Acetone in India, performed an upward price revision for Phenol by Rs. 7 per kg to Rs. 122 per kg while Acetone prices declined by Rs. 2 per kg to Rs. 82 per kg.
Its interesting to add that both chemicals are derivatives of Benzene, yet their prices in India, imported (bulk prices) and ex-works price, are moving in an opposite direction due to stark market dynamics.
Indianpetrochem notes that the demand for Acetone has been moderate to weak from Pharmaceutical and Paint industries, which are the main end uses of the solvent in India. This is contrary to the demand scenario for Phenol, where strong demand from Plywood and Laminate industry outweighs the existing supplies, thereby adding significant pressure to prices.
"Unlike Phenol, there is no supply shortage of Acetone in Asian market, as such, the booking price has been stable at $1,140-1,150 per metric tonne CIF India since the past few weeks", a prominent importer in Mumbai informed the website.
An industry source confirms that there is more than 10,000 metric tonne of Acetone available at Indian ports, whereby 2,500 metric tonne is available in Kandla, 6,537 metric tonne at Mumbai Port and 1,950 metric tonne is available at JNPT port.
Currently, the bulk price of Acetone at Kandla is Rs. 79 per kg while in Mumbai the price is around Rs. 78 per kg. The prices are expected to remain more or less stable at this range as there is moderate demand and ample supplies for the chemical in Indian market.
On 1st July, 2014, SI group, the only active manufacturing facility for Phenol and Acetone in India, performed an upward price revision for Phenol by Rs. 7 per kg to Rs. 122 per kg while Acetone prices declined by Rs. 2 per kg to Rs. 82 per kg.
Its interesting to add that both chemicals are derivatives of Benzene, yet their prices in India, imported (bulk prices) and ex-works price, are moving in an opposite direction due to stark market dynamics.
Indianpetrochem notes that the demand for Acetone has been moderate to weak from Pharmaceutical and Paint industries, which are the main end uses of the solvent in India. This is contrary to the demand scenario for Phenol, where strong demand from Plywood and Laminate industry outweighs the existing supplies, thereby adding significant pressure to prices.
"Unlike Phenol, there is no supply shortage of Acetone in Asian market, as such, the booking price has been stable at $1,140-1,150 per metric tonne CIF India since the past few weeks", a prominent importer in Mumbai informed the website.
An industry source confirms that there is more than 10,000 metric tonne of Acetone available at Indian ports, whereby 2,500 metric tonne is available in Kandla, 6,537 metric tonne at Mumbai Port and 1,950 metric tonne is available at JNPT port.
Currently, the bulk price of Acetone at Kandla is Rs. 79 per kg while in Mumbai the price is around Rs. 78 per kg. The prices are expected to remain more or less stable at this range as there is moderate demand and ample supplies for the chemical in Indian market.
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