Escalating benchmark price of Benzene in the Asian markets has put considerable pressure on most of its downstream derivatives in international and local markets. Recently, Phenol prices in India have also augmented on this account. Now, there is a probability that Aniline prices in India might also escalate as the price differential of Rs. 10-11 per kg exists between Gujarat Narmada Valley Fertilizers and Chemicals's (GNFC) ex-works price and the imported bulk price of the chemical in Gujarat.
Aniline is mainly used to manufacture intermediaries for dyes. The website's conversation with various traders reveals that there is moderate to weak demand from dye manufacturing sector (which are mainly based out of Gujarat) for the chemical, due to the onset of monsoon.
While the demand is moderate, Indianpetrochem notes limited availability of GNFC stocks in the Gujarat market.
"In line with international crude oil price movement, the booking price of Aniline has increased within the past five to eight days from level of $ 1,785 per metric tonne to $ 1,800 per metric tonne, and the current price of $ 1,825 per metric tonne", an Ahmedabad based importer informed the website.
Rising booking price of the chemical is set to invariable impact the bulk prices at Kandla, unless and until the demand falls substantially. Currently, the Ex-Kandla price of Aniline is Rs. 132-133 per kg while GNFC's basic price is around Rs. 122 per kg.
"There is no supply shortage of Aniline against existing demand. But there is limited availability of GNFC stocks. We (traders) feel that the company is not releasing the stocks in the market as there is going to be an upward price revision on 1st July, 2014", an Ahmedabad trader informed the website.
At present, there is considerably price difference between imported and GNFC's manufactured Aniline within the country. Despite weak seasonal demand, there is expectation that GNFC should do an upward price revision for Aniline in the coming month, according to sources. However, there are chances that the company might hold or even decline current ex-works prices on account of existing demand conditions, but only a few market participants hold this view.
Aniline finds major application in manufacturing intermediate for dyes, drugs, and other intermediate chemicals in India.
Note: All prices are exclusive of all taxes.
Aniline is mainly used to manufacture intermediaries for dyes. The website's conversation with various traders reveals that there is moderate to weak demand from dye manufacturing sector (which are mainly based out of Gujarat) for the chemical, due to the onset of monsoon.
While the demand is moderate, Indianpetrochem notes limited availability of GNFC stocks in the Gujarat market.
"In line with international crude oil price movement, the booking price of Aniline has increased within the past five to eight days from level of $ 1,785 per metric tonne to $ 1,800 per metric tonne, and the current price of $ 1,825 per metric tonne", an Ahmedabad based importer informed the website.
Rising booking price of the chemical is set to invariable impact the bulk prices at Kandla, unless and until the demand falls substantially. Currently, the Ex-Kandla price of Aniline is Rs. 132-133 per kg while GNFC's basic price is around Rs. 122 per kg.
"There is no supply shortage of Aniline against existing demand. But there is limited availability of GNFC stocks. We (traders) feel that the company is not releasing the stocks in the market as there is going to be an upward price revision on 1st July, 2014", an Ahmedabad trader informed the website.
At present, there is considerably price difference between imported and GNFC's manufactured Aniline within the country. Despite weak seasonal demand, there is expectation that GNFC should do an upward price revision for Aniline in the coming month, according to sources. However, there are chances that the company might hold or even decline current ex-works prices on account of existing demand conditions, but only a few market participants hold this view.
Aniline finds major application in manufacturing intermediate for dyes, drugs, and other intermediate chemicals in India.
Note: All prices are exclusive of all taxes.
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