Strong demand anticipated for C9 solvent in India, but will prices rise proportionally? – 31 Mar 2014

The demand for C9 solvent is expected to gain momentum in the the coming months due to strong cyclical demand from the agrochemical sector. Indianpetrochem spoke to some traders in the market in order to get a comprehensive outlook on the demand and supply for the chemical in the coming two months.

According to data gathered by Indianpetrochem, on an average, the bulk price for C9 solvent in the market is stable at range of Rs. 77-78.50 per kg (exclusive of all taxes).

Apart from RIL, which directly sells the solvent to end - customers, and other smaller domestic manufacturers, the country is largely dependent on imports to fulfill its demand.

One of the major application of C9 solvents is in the manufacturing of pesticide, apart from this the solvent is also used in resins, pigments, paints and painting ink. In this light the website gathers from various sources that the demand from pesticide industry peaks  from mid - April until the end of May.

In this context, our market insider informed, "Most importers have pre book huge shipments of C9 solvent to India on account of strong foreseeable demand. Also, 60% of the importers have already sold the solvent on account of pre - booking made by buyers". As such, the websites insider gathers that there is most likely a possibility of a short fall in supply for C9 solvent, which will push forward the bulk prices of the aromatic in the Indian market.

Also, the website spoke to an official at Mehta Petro Refineries, which has overall installed capacity of 50,000 metric tonne for a wide collection of Aromatic Hyrocarbon fluids (including C9 solvent), the official did agree that strong demand is expected from the pesticide industry in the coming month but didn't agree on the poor stock position for C9 solvent. However, the official added that the prices are most probably going to rise by Re 1 per kg or so on account of strong demand.

Furthermore, the official added that the current demand for the solvent is 10,000 metric tonne per month, pan India. 

At present, the average pre booking rate for C9 solvent in India is within the range of Rs. 77-77.50 per kg (exclusive of all taxes).

Overall, the website comprehends that the prices for C9 solvent aren't going to rise significantly in India in the coming months because its easily substitutable with Mix Xylene, which currently trades at Rs. 80 per kg Ex-Kandla. Hence, the prices are expected to increase within reasonable range of present market price for the solvent.