The Butylated Hydroxytoluene (BHT) market in India was positive at the end of November 2025, driven by rising prices stemming from increased import prices and tight domestic supplies. There was a rise in freight charges from East Asia because of container shortages and there was also a weakening of the rupee that increased the costs of landed products. Importers anticipated the possibility of anti-dumping duties being placed on cargoes originating from China, so they started purchasing products early to keep the stocks in bonded warehouses very low. The domestic production of goods remained structurally limited due to the very high costs of para-cresol and isobutylene, so traders retained pricing power from that perspective. The demand for goods remained steady as the FMCG, food processing, personal care, and elastomer companies began to procure large amounts of goods for the festival and wedding season. The buyers purchasing smaller lots in northern areas were receiving considerably higher offers for their goods. In summary, the strength of the market during November was driven by cost pressures, supply constraints, and proactive procurement by downstream businesses.
As of the end of November 2025, Butylated Hydroxytoluene (BHT) had a strong performance with rising prices, 1.8% in November, month-to-month in the Indian market. Imports were the primary driver of pricing pressure in November due to import costs associated with BHT; most of the BHT needed in India is imported from China, Saudi Arabia and Taiwan. Ocean freight rates from East Asia increased rapidly due to a shortage of containers in preparation for the holiday shipping peak. The moderate depreciation of the rupee against the US dollar added to the landed cost of BHT at Nhava Sheva. Additionally, importers were considering new anti-dumping marginals regarding Chinese BHT, which is expected to increase; therefore, many buyers placed orders prior to any updates to the customs duty.
Supply constraints affected the ability of local producers to cushion the BHT market due to reliance on a limited number of small processors of antioxidants who are currently operating normally, however, they are incurring higher input costs due to the elevated prices of para-cresol and isobutylene. These additives are composed of a large proportion of imported or captive sourced petrochemical products that are preventing local producers from being able to supply the market adequately. Traders took advantage of the tighter supply situation by maintaining their BHT pricing power and successfully raising their BHT offers, especially for smaller lot sizes that are destined for consumption in the northern markets. Most bonded warehouse inventories have been estimated at approximately two weeks of average offtakes, as incoming cargoes have been moved out of bond quickly to minimize the chance of incurring additional duties.
Consumption and consumer-driven products began making accelerated BHT purchases to secure sufficient quantity and inventory during a lengthened holiday and wedding period, thus limiting availability in the marketplace. Food processers were purchasing more preservatives to allow for a longer shelf-life for snack products, while beauty formulators purchased more antioxidants to expand deodorant and skincare lines associated with holiday offerings. The elastomer (rubber) industry experienced steady call-offs enabled by strong automotive manufacturing and continued demand for replacement tires. Animal feed manufacturers only made minimal purchases based upon soy meal price shocks; however, additive quantities remain constant, so continued BHT demand exists. Procurement managers, fearing potential duty fluctuations, placed December orders in November, thereby "front-loading" their needs.
Despite some anticipated seasonal decline over the next several months (January and February), BHT Pricing is expected to remain strong through peak season from December (continued freight surcharges) and through replenishment of fast-moving consumer goods (FMCG). As we move toward March and April, we will likely see an uptrend in BHT pricing due to the increase in prices of para-cresol, lower value of the Rupee, and pre-monsoon stocking; while typically, the end of the month (May), should see a modest decline in BHT prices due to subdued demand and reduced freight rates, overall the monthly increase (November) was driven by firm freight pricing, currency pressures, and a high level of proactive stocking across downstream industries.
