India acetone prices fall amid propylene decline, oversupply

SINGAPORE (ICIS)–Spot acetone prices in India fell this week, tracking the recent decline in propylene prices even as oversupply conditions persisted.

On 7 October, prices were assessed by ICIS at $410-550/tonne CFR India, down $20-25/tonne week on week.

The high end of the price range represent deals and discussions for cargoes exempt from anti-dumping duties (ADDs), as well as dutiable cargoes sold to the Indian domestic market, while the low end took into account cargoes subject to high ADDs but are sold to the advance licence or re-export market that exempt them from paying the duties.

Prices have fallen for a third straight week, tracking weaker deals and discussions.

Most importers remained on the sidelines in view of the oversupply in Indian domestic markets, limiting deals and discussions for October shipments.

The domestic market also remained awash with supply, weighing on ex-tank offers and list prices for October shipments during the week.

A weak offtake among end-users limited discussions for cargoes offered to the advance licence or the re-export market during the week.

The bulk of market players cited ample supply and weak offtake in the pharmaceutical sector as the primary factors that weighed on buying interest during the week.

The near-term outlook for acetone also remains weak, capped by the ample supply of imported product in the domestic markets and sluggish downstream demand.

This is expected to weigh on import discussions for November shipments to the Indian domestic market, when prices are likely to be announced in the following weeks.

A lack of buying interest in the oversupplied ADD-exempt advance licence market is also likely to continue in the near-term, market players said.

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