Indian acetone rises $50/tonne on ADD, high feed

09 April 2008 05:36  [Source: ICIS news]

SINGAPORE (ICIS news)--Indian acetone has seen a steady rise in rates and has increased by nearly $50/tonne over last month on high feedstock prices and a tight supply situation due to the pressure exerted by anti dumping duties (ADD) on the product, industry sources said on Wednesday.

Acetone was assessed at $1,040-1,050/tonne CFR (cost and freight) India this week, whereas last month, its price hovered around the $1,000/tonne mark, they added.

Acetone in Asia also continued to firm due to tight supplies amid a spate of plant turnarounds scheduled in the second quarter and spot prices were last assessed at $1,000-1,050/tonne CFR China Main Port (CMP) and import prices in southeast (SE) Asia were assessed at $1,050-1,080/tonne CFR SE Asia.

Spot prices for upstream propylene were heard up $20/tonne at $1,260-1,300/tonne CFR northeast (NE) Asia during the week ended 4 April.

“Prices of acetone have been rising for the past month and [are] likely to do so if raw materials like propylene and phenol prices continue to rise,” a source said.

Demand for acetone in India was good after the end of the fiscal year on 31 March as buyers were keen to replenish low inventories. “Buyers wanted to wait till after end of the financial year before they start planning their nominations for next year which will start 1 April,” a source said.

Even a major producer in India had to seek supplies to cover its requirements. Sources said the company was seeking about 700 tonnes of prompt acetone cargoes and it was believed that it had managed to procure the consignment but price and seller details were sketchy.

On 1 April, Indian domestic prices were raised by Indian rupees (Rs)2/kg ($0.05/kg) to Rs 56/kg ex-tank in Cochin, and Rs54/kg ex-tank in Kandla and Mumbai.

However the ADD was causing problems in sourcing supplies, buyers said. “We can’t buy supplies from so many places due to the ADD, which has increased our cost price tremendously,” a buyer said. (see table below for the ADD on cargoes from different countries)

There was no ADD on Korean and Japanese cargoes, which allowed suppliers from these two countries to be competitive in their pricing, sources said.

A Korean supplier reportedly sold 2,000 tonnes of acetone to India at $1,015-1,020/tonne FOB Korea for April loading towards the end of last week. This equates to $1,115-1,120/tonne CFR India after factoring freight cost of around $100/tonne.

Sources said the cargo had to be moved from the supplier’s refinery in Yeosu to the nearest major port in Ulsan and the inter-berth freight costs were pegged at around $20/tonne.

Indian buyers were not seeking cargoes from Europe and US as the prices were not competitive once the ADD of $200-250/tonne had been factored in, sources said.

US suppliers were reportedly diverting cargoes to China instead and offers for US cargoes were heard at $950/tonne FOB USA for April nominations.

Offers of Taiwanese cargoes at $1,075-1,080/tonne CFR India were also not well received by Indian buyers as the prices were still not competitive after factoring ADD of $90-200/tonne. Cargoes of Singapore origin were subjected to $150-160/tonne in ADD.

The ADD was first announced in April 2007 and the duties for this year were set by the Indian Ministry of Commerce on 4 January. 

Indian ADD on cargoes

Current Status

Final Findings

Formosa  (Taiwan)

US$ 89.42 / MT

TPCC (Taiwan)

US$ 87.14 / MT

Others (Taiwan)

US$ 201.27 / MT

Mitsui & Co. (Singapore)

US$ 158.11 / MT

Sumitomo Corp (Singapore)

US$ 147.15 / MT

Others (Singapore)

US$ 240.06 / MT

Sasol (S.Africa)

US$ 141.95 / MT

Others (S.Africa)

US$ 179.65 / MT

USA

US$ 213.76 / MT

EU

US$ 277.85 / MT

 

 

 

 

 

 

 

($1 = Rs39.90)


By: Desmond Chia
+65 6780 4359



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly