Improved Demand and Inflationary Pressure Compelling Indian C9 & C10 Manufacturers to Raise their Offers
- 07-Jan-2022 6:58 PM
- Journalist: Jai Sen
Sudden rebound in demand from the domestic downstream consumers and expensive cargoes is pushing up prices of several commodities including C9 & C10 solvent in Indian market. High price quotations from manufacturers are compelling traders to raise their offers, in order to sustain margins. Further, previous downtrend was already pointing toward an uptrend in January, which has turned into reality.
As per ChemAnalyst sources, a hike of around 20% and 22% are observed in prices of C10 and C9 solvent respectively during the first week of this month. Meanwhile, under the threat of Omicron, panic buying activities have also been induced, as traders are anticipating state wise movement restriction in India. However, downstream consumers also stayed cautious about additional price hikes, which might put an extra burden on their profitability. In addition, all these issues are also influencing inflationary pressure on the country, which will eventually pressurise consumers’ pocket.
Analysing previous market trend, post festive season in India, solvents prices were declined due to demand dullness and ample inventories hold by traders and consumers. Thus, traders were opened to negotiate on their existing cargoes, that led to a significant fall in prices. Afterwards, significant rebound in prices were anticipated by ChemAnalyst based on expected pickup in demand, which is now observed in Indian market.
As per ChemAnalyst analysis, C9 & C10 Solvent prices are expected to fluctuate in a narrow range in forthcoming months on the back of uncertainties induced by domestic as well as global factors. Meanwhile, Omicron threat is also pointing toward movement restrictions, which might affect downstream consumption in India. Furthermore, the havoc induced by another wave of pandemic, might provide some ease to upstream crude oil value, without hampering production activities in India.