04 September 2013 13:24 [Source: ICIS news]
SINGAPORE (ICIS)--Spot isopropanol (IPA) prices in India rose sharply as the chief regional producer announced an increase in its list prices for September shipments, market sources said on Wednesday.
The IPA producer was heard to have announced its prices for September shipments at Indian rupees (Rs) 94.00/kg ($1.41/kg) EXW (ex-works), up by Rs10.00/kg from August prices, market sources said.
Spot prices of imported cargoes also increased by Rs10.00/kg from August to Rs93.00-94.00/kg ex-tank at Kandla, one of the major ports on the west coast of India, sources said.
According to sources close to the producer, the prices in the domestic markets were very low compared to international markets throughout the month of August.
Domestic prices were weighed down by weak demand and ample supply through August, despite the depreciation in the Indian rupee against the US dollar and higher import offers, sources said, and deemed the increase in prices as a “necessary correction”.
The price hike was met with subdued response from regional buyers, who opted to watch the trend in movement of the Indian rupee against the US dollar, and its impact on the regional IPA prices.
Meanwhile, demand for imports from northeast Asia to India was heard to remain largely limited because of ample supply.
Spot IPA prices in India were assessed at $1,215-1,240/tonne CFR (cost & freight) India in the week ended 28 August, according to ICIS data.
Prices remained unchanged throughout August, because of excess availability of product at the regional ports and subdued demand.
While a limited number of deals were concluded for September-loading cargoes in August, these largely comprised lower-priced European and southeast Asian cargoes.
Deals for European and southeast Asian lots were concluded at $1,225-1,250/tonne CFR India for early September shipment.
September lots from Taiwan offered at $1,250/tonne FOB Taiwan, equivalent to $1,320/tonne CFR India, were consequently deemed as high.
While northeast Asian producers cited rising propylene prices as the reason behind firm offers, buying ideas remained capped at $1,230-1,250/tonne CFR India.
IPA is used in the pharmaceutical and agrochemical sectors, as well as a solvent in the coatings industry.
($1 = Rs67.93)
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