India IPA falls 11% from early November

13 November 2008 09:53  [Source: ICIS news]

SINGAPORE (ICIS news)--Indian isopropanol (IPA) prices have fallen by 11.36% since early November on continued weak demand from end-users, industry sources said on Thursday.

Prices fell to $950-1,000/tonne CFR (cost and freight) India, with players indicating notional numbers amid a lack of firm bids and offers in the market.

Players who are still mostly long in supplies reported muted buying interest. An estimated 3,000 tonnes of the chemical remained lying in the ports of Kandla and Chennai, with half of the volume committed to customers and the remaining half still unsold.

Taiwanese cargoes were heard offered at $900/tonne FOB (free on board) Taiwan, equating to $980/tonne CFR India after factoring freight costs of $80/tonne. Korean cargoes were heard offered at $1,000/tonne FOB Korea or $1,080/tonne CFR India.

No imports into India were expected over the next two months. The major western major suppliers were also not in the Indian market with offers.

“Normally, they will offer but we are not hearing any numbers from them this week. This is quite surprising,” a trader said.

Indian IPA prices could go lower as demand from downstream local pharmaceutical manufacturers has also been tapering off due to slowing demand from their buyers in US and Europe.

“The main concern is still credit and funding issues as suppliers are unwilling to deal with buyers with low credit worthiness,” another source said.

Domestic offers were heard even lower at Rs 53-57/kg ex tank in Kandla and Chennai. A major domestic supplier was offering at the upper price range.

The Indian supplier was also offering exports at $1,050-1,100/tonne FOB Mumbai but buyers were few.

($1 = Rs 47.42)

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By: Desmond Chia
+65 6780 4359

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