During second half of September 2025, Indian Diisopropyl Ether (DIPE) market demonstrated resilience with prices rising modestly in the third and fifth weeks while remaining flat in the fourth. The main factors supporting the observed upward price were renewed demand from pharmaceutical and agrochemical sectors, regulatory clarity from the NPPA regarding vendor costs relating to GST benefits and calls for PLI to help promote the domestic base. DIPE prices in Ex depot Mumbai extended the bullish trend to 12 weeks.
India's DIPE demand during second half of September 2025 remained strong. The demand was driven by pharmaceuticals sector, followed by agrochemicals. E-commerce packaging and FMCGs had strong demand, and rising applications in perfumes, natural fragrances, and textile dyes/pigments expanded DIPE requirement. Supply remained stable, relying on imports from China and Germany. The domestic ports also contributed to a stable supply by operating efficiently and minimizing global shipping delays and shipping rates. DIPE re-exports remain unaffected to Japan, the UAE, and Saudi Arabia as inventory levels indicated strong export consumption. ACFI engaged the government to promote PLI schemes and the continuation of tax holidays to decrease reliance on imports and increase local manufacturing. In addition, Eli Lilly (Pharmaceuticals) signal confidence after announcing to invest in partnerships with Indian companies. Investment of $1 billion will be made to increase manufacturing capabilities, enabling parity despite the ongoing pressures in sourcing isopropanol feedstock.
DIPE prices advanced by 0.48% in the third week of September 2025. This occurred during a composed and calm condition and market tone, and amid no disruption. The fourth week reflected stable DIPE prices with balanced supply and demand and stable input costs. In the fifth week DIPE prices further advanced by 0.90%, representing bullish trend and later being sustained to reflect a steady sentiment in the market, while the operating rates and procurement were normal levels.
The NPPA's regulatory guidance of September 12-13 clarified that reduced GST rates on drugs and devices must be passed through to consumers. In support of continued demand for pharmaceutical solvents, ACFI has suggested a PLI scheme along with targeted tax holidays for selected agrochemical products to reduce import consumption. Growth in the perfume marketplace, driven primarily by millennial preferences for natural and unisex fragrances, alongside export ambitions in the textile sector towards PLI funding and other incentives, were all influences on increased DIPE application in dyes, pigments and coatings, all of which combined with strong re-export activity and efficient freight and logistics, underlined market firmness, which was only mildly impacted by increased stated global freight costs.
ChemAnalyst, anticipates Indian DIPE market to remain firm till October 2025, with minor uptick driven pharma and agrochemicals, as well as perfumes and textiles are growing. Moreover, government may continue to support PLI schemes and appropriate prices to counteract import reliance and allow growth of bullish momentum. DIPE and its feedstock to have lower risk of import reliance.
