MTO Prices in India Drop 12.08% Amid Softer Crude Oil and Weak Downstream Demand

MTO prices in India declined during July as monsoon-related weakness in downstream demand and softer crude oil benchmarks pressured the market. Heavy rainfall disrupted construction and exterior painting activities, reducing consumption from decorative and industrial coatings, while weaker manufacturing conditions also affected demand from engineering, rubber, and printing-ink applications. Although fuel and automotive activity provided some support, it was insufficient to offset weakness in major downstream sectors. On the supply side, healthy refinery throughput maintained comfortable MTO availability, while softer upstream crude oil costs reduced production pressure. Downstream buyers remained cautious, purchasing smaller quantities and avoiding inventory accumulation, which strengthened their negotiating position. Looking ahead, the MTO market outlook remains mixed. Seasonal stocking ahead of the festive period and firmer refinery benchmarks could support prices, while comfortable supply and potential inventory corrections may create downward pressure. Subsequent demand recovery could provide intermittent support later in the outlook period.