India acetone import prices rise on China market gains

Focus story by Veena Pathare

SINGAPORE (ICIS)–Spot acetone import prices in India increased this week, largely tracking the uptrend in the key Chinese market, industry sources said on Friday.

On 23 July, acetone prices were assessed at $1,120-1,175/tonne CFR (cost and freight) India, up by $10-15/tonne from the previous week, ICIS data showed.

Two deals for August-loading Taiwanese cargoes – of 1,000 tonnes each – were concluded this week at $1,115/tonne FOB (free on board) Taiwan, which is equivalent to $1,175/tonne CFR India, market sources said.

Taiwanese cargoes are exempt from anti-dumping duties (ADDs) in the Indian market, and freight from Taiwan to the west coast of India is estimated at $60-65/tonne.

Last week, Indian importers had deferred purchases of August shipments in the previous week, resisting high offers given weaker acetone prices in the domestic market.

Northeast Asian producers, however, have maintained their high price quotes this week to India, citing firm feedstock costs and a potential of a better netback if they sell to the Chinese market, industry sources said.

Acetone prices in the Chinese import market were assessed at $1,125-1,135/tonne CFR China in the week ended 18 July, up by $15/tonne at the low end of the previous week’s range, according to ICIS data.

Limited availability of ADD-exempt northeast Asian offers, along with reduced inflow of June-shipping deep-sea acetone, nudged up spot prices in China, market sources said.

Meanwhile, acetone prices in the Indian domestic market have started to increase this week, prompting importers in the country to agree to a $20-25/tonne price increase for August lots compared with July deals.

It was a “much-needed upward correction” in domestic acetone prices, and it supported higher-priced discussions for August lots, according to the importers.

A Taiwanese producer offered 6,000 tonnes of August-loading cargoes to India this week, of which 2,000 tonnes have been sold, market sources said.

Deals for the remaining 4,000 tonnes have yet to be confirmed, and the producer is hoping to completely sell the full volume next week at current offers of $1,115/tonne FOB Taiwan.

“We don’t see a reason to reduce our offers to the India market as our feedstock costs have gone up sharply. Also, we can easily realise the same price, or even higher in China,” a source at the Taiwanese producer said.

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections