Acetonitirle price escalates in Mumbai and Ahmedabad markets – 10 Jun 2014

The barrel prices of Acetonitirile increased significantly this week on account of demand- supply imbalance. As there are no domestic manufacturers for the chemical in the country, the prices in India are extremely sensitive to import price fluctuations. This review summarises the impact of booking price fluctuations on the Ahmedabad and Mumbai markets

The website gathers from various traders in the market that the demand for Acetonitirile is strong in Mumbai and Ahmedabad markets. However, as a consequence of short supply of imports in domestic markets, the barrel price of the chemical has skyrocketed this week.

In Mumbai market, the barrel  price increasedfrom Rs 210 (exclusive of VAT and Excise)per kg to Rs 235 per kg(exclusive of VAT and Excise), while inAhmedabadthe price escalated fromRs 220 a kg  (exclusive of VAT and Excise) to 255 a kg  (exclusive of VAT and Excise).

A Mumbai based trader added, " As a consequence of the current demand- supply imbalance, we expect the prices to reach to Rs. 240-245 per kg (exclusive of VAT and Excise) in Mumbai within few days."

The website assimilates that hike in booking price for the chemical is another reason for the price escalation. Its understood that the booking price increased by $150 per metric tonne to current price booking price of $3,150 per metric tonne CFR India.

At the same time, the prices in Delhi market didn't increase considerably on account of lower volumes traded. Acetonitrile demand is moderate in Delhi market, while the price increased from Rs 225 a kg (exclusive of VAT)to Rs 230 a kg(exclusive of VAT).

Overall , it will be interesting to see if the prices can stabilize at these high trading ranges in the short to medium term.