Prices of Ethyl and Butyl Acetate are Expected to Fall
- 16-Jun-2022 4:04 PM
- Journalist: S. Jayavikraman
Ahmedabad, India: Currently, Ethyl and Butyl Acetate prices are approaching stability in India. However, as per ChemAnalyst's trusted sources, both commodities' market value would soon start declining in the country. While synchronizing with each other, the prices of Ethyl Acetate and Butyl Acetate showcased an increment of 0.95% and 0.91%, respectively, during the 2nd week of June. Hence, the value of Ethyl Acetate got settled at INR 101336/MT Ex-Mumbai, and Butyl Acetate got assembled at INR 126840/MT Ex-Kandla.
The Indian market expects a decline in prices of Ethyl Acetate and Butyl Acetate because their major manufacturing company GNFC (Gujarat Narmada Valley Fertilizers and Chemicals Ltd), is planning to reduce the cost of Ethyl and Butyl Acetate. Though it would take some time to reflect its effect entirely on the downstream market, it is expected that the same would happen by the end of the current week or till the beginning of the following week.
Furthermore, the prices of feedstock Acetic Acid have been dropping in the regional market due to its reducing value in China, which is the major exporter of Acetic Acid to India. The Chinese market has been experiencing falling Acetic Acid prices due to easing lockdown restrictions and relieving port congestions, consequently relaxing the trading activities to and from China. However, Ethyl and Butyl Acetate prices have been surging in the USA because of shutdowns and force majeures announced by many manufacturing units.
As per ChemAnalyst anticipations, "The market value of Ethyl and Butyl Acetate would attain stability first and then it would start decreasing in India owing to the lesser upstream cost involved in manufacturing these commodities. Meanwhile, easing lockdown norms and trading activities from China would make Acetic Acid import to India much more convenient. Likewise, the prices of other Acetic Acid derivatives are also likely to fall in the Indian domestic market."