This week the demand for Benzene in Mumbai and New Delhi markets has been moderate. In this context, a Delhi based trader told the website, "Moderate demand persists in Indian market due to low demand from buyers for the aromatic and sluggish demand for its end product". As such, market participants are adopting need based procurement strategy and are avoiding bulk purchases.
Benzene is used as a chemical intermediate for the production of many important industrials compounds such Styrene, Phenol, Cyclohexane, Alkylbenzene, Nitrobenzene, Aniline, Chlorobenzenes etc.
Traders cite average demand for benzene because of moderate demand for the resulting chemicals in Indian market.
Reliance has the highest market share for Benzene in India. However, after talking to some big traders in Mumbai and New Delhi, Indianpetrochem found out that there is limited supply of Reliance manufactured Benzene in the market. Instead, traders in Mumbai and New Delhi have access to Benzene manufactured from other domestic players like Indian Oil Corporation Limited and Steel Authority of India (SAIL) etc, they have very limited supplies of Benzene manufactured from Reliance Indian Limited (RIL), based on market sources.
According to Chemical & Petrochemical Manufacturers' Association, in 2012, the installed capacity of Benzene in India was1,344 kilo tonne per annum, where domestic production stood at 1,150 kilo tonne per annum and imports were 50 kilo tonne per annum.
These statistics indicates that India isn't significantly dependent on imports for the aromatic.
Internationally, the prices of Benzene have surged since the beginning of 2014. In South Korea Benzene prices have consistently been increasing since the beginning of the month, till now the prices have increased by $26 per metric tonne to current levels of $1,366 per metric tonne FOB.
On the other hand, the price of the aromatic in India has been stable due to poor market dynamics. In Mumbai and New Delhi, Benzene sells for Rs. 90 per liter.
RIL produces Benzene at Hazira, Jamnagar and Patalganga manufacturing units. Benzene manufactured from Hazira and Jamnagar has very high product purity and its well- accepted internationally. Since 2005, the purity of Benzene manufactured at Jamnagar was enhanced to the highest international standards by using the latest sulpholane extractive distillation technology, according to the company website.
As such, it can be said that insufficient availability of benzene manufactured by Reliance in India is due to higher exports to the international market. In this light, traders apprehend that other domestic manufactures might adopt a similar strategy and sell in international prices, where the prices are higher. This might invaribaly impact the market dynamics, whereby supply shortage can trigger upward movement in prices within India. However, traders aren't sure on the timeline for this upswing in prices, as such, there is uncertanity over the price movemnt of Benzene in the near term.
Benzene is used as a chemical intermediate for the production of many important industrials compounds such Styrene, Phenol, Cyclohexane, Alkylbenzene, Nitrobenzene, Aniline, Chlorobenzenes etc.
Traders cite average demand for benzene because of moderate demand for the resulting chemicals in Indian market.
Reliance has the highest market share for Benzene in India. However, after talking to some big traders in Mumbai and New Delhi, Indianpetrochem found out that there is limited supply of Reliance manufactured Benzene in the market. Instead, traders in Mumbai and New Delhi have access to Benzene manufactured from other domestic players like Indian Oil Corporation Limited and Steel Authority of India (SAIL) etc, they have very limited supplies of Benzene manufactured from Reliance Indian Limited (RIL), based on market sources.
According to Chemical & Petrochemical Manufacturers' Association, in 2012, the installed capacity of Benzene in India was1,344 kilo tonne per annum, where domestic production stood at 1,150 kilo tonne per annum and imports were 50 kilo tonne per annum.
These statistics indicates that India isn't significantly dependent on imports for the aromatic.
Internationally, the prices of Benzene have surged since the beginning of 2014. In South Korea Benzene prices have consistently been increasing since the beginning of the month, till now the prices have increased by $26 per metric tonne to current levels of $1,366 per metric tonne FOB.
On the other hand, the price of the aromatic in India has been stable due to poor market dynamics. In Mumbai and New Delhi, Benzene sells for Rs. 90 per liter.
RIL produces Benzene at Hazira, Jamnagar and Patalganga manufacturing units. Benzene manufactured from Hazira and Jamnagar has very high product purity and its well- accepted internationally. Since 2005, the purity of Benzene manufactured at Jamnagar was enhanced to the highest international standards by using the latest sulpholane extractive distillation technology, according to the company website.
As such, it can be said that insufficient availability of benzene manufactured by Reliance in India is due to higher exports to the international market. In this light, traders apprehend that other domestic manufactures might adopt a similar strategy and sell in international prices, where the prices are higher. This might invaribaly impact the market dynamics, whereby supply shortage can trigger upward movement in prices within India. However, traders aren't sure on the timeline for this upswing in prices, as such, there is uncertanity over the price movemnt of Benzene in the near term.
No comments:
Post a Comment