Supply Constraints for Methyl n-Amyl Ketone are Compelling Traders to Raise their Offers in Indian Market
- 24-Jan-2022 3:00 PM
- Journalist: Nina Jiang
Indian traders have been battling with changing market dynamics of India as well as China since past few months. Products, for which India is highly dependent upon China are running out of stocks in Indian market. Methyl n-Amyl Ketone (MAK) is one of those products which has been vanished from Indian market, while traders have even zero inventory for Methyl n-Amyl Ketone to sell. As per ChemAnalyst sources, MAK is not available for spot buying as traders have stopped providing price quotations.
However, the demand for the product remained stable in the meantime, which was eventually lifting up the future prices of the product in domestic market. Despite of the fact that, demand fundamentals for Methyl n-Amyl Ketone in India is modest to stable, prices kept on escalating driven by regional scarcity after production cuts imposed by China.
Ahead of winter Olympics, China has already introduced production cuts in order to reduce emission, which has already reduced the output of the country for several chemical commodities. Furthermore, soaring energy cost and high labour wage settlements is still a major concern for manufacturers, which is empowering the global inflation. In addition, zero tolerance policy of China against pandemic is also concerning global market, as rising lockdown restrictions under the threat of increasing Omicron cases in the country may hamper the global economic growth.
As per the recent data, dependency of India on China for several goods has risen exponentially despite of measures taken by Indian government. Meanwhile difficulties in imports are also threatening Indian market, which is already battling with high raw material prices. These imports halts and raw material scarcity is damaging the current economic growth of the country and injecting further inflationary pressure on consumers. However, we might expect recovery in exports from China post winter Olympics and spring festival during February, till then global market has to battle with scarcity of different raw materials.