05 July 2013 09:13 [Source: ICIS news]
By Trisha Huang
MELBOURNE (ICIS)--Domestic offers for ethyl acetate (etac) in India have increased by about 8% in July, driven by higher feedstock costs this month, industry sources said on Friday.
Local producers are offering Indian rupees (Rs) 54/kg ($898/tonne) ex-works for July etac, up from Rs50/kg ex-works in June.
“Our offer is at Rs54/kg this month, which is meeting some resistance from local buyers,” said a producer.
Ethanol prices rose to Rs32/litre EXW from Rs30/litre EXW in June as the government’s initiative to blend 5% ethanol into gasoline was launched .
“The fuel blending programme has started in northern India,” said a separate producer.
Meanwhile, the Indian rupee’s plunge against the US dollar – by about 9% in the April to June quarter – has pushed up the cost of dollar-denominated acetic acid imports, the producers said.
Roughly 80-85% of the acetic acid consumed in India is imported, according to the producers.
For exports, Indian producers’ July offers rose to $900-930/tonne (€702-725/tonne) FOB (free on board) India from $870-900/tonne FOB India in June. One producer has increased its July offer to $950/tonne FOB India.
India, with an estimated total etac capacity of 470,000 tonnes/year, is a net exporter with shipments to Europe, the Middle East and South Korea estimated by market sources at roughly 130,000 tonnes/year. The pharmaceutical sector in India accounts for roughly 40% of the 270,000-280,000 tonnes consumed annually in the domestic market.($1 = Rs60.11 / $1 = €0.78)
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections
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