RIL declined its ex- works price of C9 solvent in August from Rs. 2.50 to Rs.70.00 per kg. Indianpetrochem had assimilated in its previous news story that there are strong market indicators for RIL to perform a downward price revision due to low demand and huge inventory pile -up at suppliers end. C9 market has registered one of the biggest drop in demand as the technical used in agrochemical industry isn't available in the Indian market.
Reliance has the largest market share in the C9 segment. This is the third consecutive depreciation in prices (for C9 solvent) by RIL during the peak season, based on Indianpetrochems price database.
Second financial quarter inevitably has the highest cyclic demand for C9 solvent in India. However, as agrochemical industry, which is the largest end user for C9 solvent, has plummeted its existing consumption due to less than expected rainfall. Otherwise, there is moderate demand from other end users for C9 solvent.
Meanwhile, import prices are expected to remain stable at trading level of Rs. 74.00-74.50 per kg, according to sources.
Other C9 manufacturers like Ganga Rasayanie, KECL and Arham Petro, at the moment have limited stock of C9 solvent as their production capacity has ceased due to limited availability of raw material, i.e, heavy aromatics.
As such, these companies are not in the position to match their prices again RIL, unavailability of fresh stock being the primary reason.
Last quoted price for Ganga Rasayanie manufactured C9 solvent was Rs. 76.00-76.50 per kg, a trader informed Indian Petrochem.
Going forward, if poor demand conditions persists,manufacturers and traders of C9 solvent can incur huge losses.
(This article was published on the website on August 05, 2014)
Reliance has the largest market share in the C9 segment. This is the third consecutive depreciation in prices (for C9 solvent) by RIL during the peak season, based on Indianpetrochems price database.
Second financial quarter inevitably has the highest cyclic demand for C9 solvent in India. However, as agrochemical industry, which is the largest end user for C9 solvent, has plummeted its existing consumption due to less than expected rainfall. Otherwise, there is moderate demand from other end users for C9 solvent.
Meanwhile, import prices are expected to remain stable at trading level of Rs. 74.00-74.50 per kg, according to sources.
Other C9 manufacturers like Ganga Rasayanie, KECL and Arham Petro, at the moment have limited stock of C9 solvent as their production capacity has ceased due to limited availability of raw material, i.e, heavy aromatics.
As such, these companies are not in the position to match their prices again RIL, unavailability of fresh stock being the primary reason.
Last quoted price for Ganga Rasayanie manufactured C9 solvent was Rs. 76.00-76.50 per kg, a trader informed Indian Petrochem.
Going forward, if poor demand conditions persists,manufacturers and traders of C9 solvent can incur huge losses.
(This article was published on the website on August 05, 2014)
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