India's Mineral Turpentine Oil (MTO) prices displayed a firm upward trend during May 2026, supported by strong seasonal demand, tightening spot availability, and favorable market sentiment. A key factor driving the increase was Bharat Petroleum Corporation Limited's decision to raise domestic MTO prices at the beginning of the month, which encouraged suppliers and traders to maintain higher offers across the market. Demand remained robust from paint and coatings manufacturers, industrial solvent producers, thinner manufacturers, and agrochemical formulators, as buyers actively secured inventories ahead of the monsoon season. At the same time, logistical disruptions and congestion at major ports restricted the movement of cargoes, reducing prompt material availability and strengthening seller bargaining power. Rising upstream energy costs further added pressure to replacement values, supporting the bullish market environment. Looking ahead, market participants expect some seasonal moderation during the monsoon period; however, post-monsoon restocking and improving industrial activity are anticipated to support MTO demand and market sentiment in the coming months.
