Solvents East India Methodology

This report covers IPA and Acetone for India, IPA, Acetone and Ethyl Acetate for the Middle East market. For chemical information please see separate entries.

In India, the major use of IPA is in pharmaceuticals, followed by agrochemicals/pesticides and then as a solvent in the coatings industry. In the Middle East the main use is in the coatings industry as a solvent.

The main use of acetone in India and the Middle East is as solvents for the coatings industry and for MMA production.

In the Middle East, ethyl acetate is used  mainly in the coatings and inks segments.

ICIS pricing quotes these solvents in India and Middle East

Frequency:

Published weekly on Wednesdays

Solvents (MIDDLE EAST/INDIA)

Weekly Price Assessments:

IPA Spot Prices

• CFR INDIA (USD/MT & conversion to US CTS/LB)
• CFR MIDDLE EAST (USD/MT & conversion to US CTS/LB)

Acetone Spot Prices

• CFR INDIA (USD/MT & conversion to US CTS/LB)
• CFR MIDDLE EAST (USD/MT & conversion to US CTS/LB)

Ethyl Acetate Spot Prices

• CFR MIDDLE EAST (USD/MT & conversion to US CTS/LB)

 

General Information:

Assessment Window:

Assessments are based on information supplied by market participants up to the close of business on Wednesday, at 1800 hours Singapore time.

Specifications:

ICIS pricing quotes material that has a minimum purity of 99.5%.

Timing:

Cargoes loading or delivered 4-6 weeks forward from the date of publication.

Terms:

Credit terms up to 30-90 days from date of bill of lading, depending on the region.

Standard Cargo Size:

The report focuses on bulk lots delivered by sea with shipment sizes varying from small 500-1000 tonnes parcels to bulk lots.

Assessment Basis:

The Middle East assessments include information from markets in Saudi Arabia, United Arab Emirates, Iran, Kuwait, Bahrain, Oman and Qatar.

IPA: India has one IPA plant – owned by Reliance – with an annual capacity 36,000 tonnes with the 20,000 tonnes annual shortfall made up by imports mainly from Singapore, the US and Taiwan. A second, 70,000 tonnes/year  IPA plant – owned by Deepak Fertilisers – is scheduled to start up in February 2006.

The Middle East market for pure IPA is relatively smaller.

The main use of IPA in both the Middle East and India  is in the pharmaceutical sector.

Acetone: Total Indian demand for acetone is 75,000 tonnes/year. About 40,000 tonnes is produced annually by the two domestic producers – Herdillia and Hindustan Organics, with the balance imported.

Total acetone demand in the Middle East is about 30,000 tonnes/year, with 10,000 tonnes used in Iran.

Ethyl Acetate: Middle East market gets the product from Russia, South America, South Africa or India.

Spot price assessments are based on information gathered throughout the week (Thursday to Wednesday) from market players comprising producers, end-users and traders. The process of evaluation takes into consideration rumoured, reported and confirmed deals; bids and offers; and buying and selling indications. In the absence of trades, the published price range may be adjusted on a notional basis to accurately reflect the levels at which trading activity could take place. Factors such as domestic prices, supply/demand balance; plant operating rates; feedstock and derivative markets; and general market sentiment are taken into account to assess prices.

Where applicable there is product information, comments on upstream and downstream market developments and general market intelligence.