In the first half of May, the price trend for Dibutyl Phthalate in India increased moderately, reflecting continued demand from key downstream sectors especially automotive and certain other downstream sectors.
Market sources indicated that domestic buyers were actively procuring to support production schedules, though the pace of purchasing remained measured amid steady inventory levels. Sentiment remained moderately firm, as there are some expectations for improved consumption in the upcoming weeks when summer demand will frequent the automotive, flexible PVC sectors, and other sectors. On the supply side conditions were balanced as Indian producers were still operating at normal rates. Upstream n-butanol was being offered regularly in the domestic market to make Dibutyl Phthalate without interruptions. Manufacturers continued to adjust rates of production for Dibutyl Phthalate based on downstream orders to avoid stockpiling.
Looking back at April, it was observed that Dibutyl Phthalate prices in India increased by approximately 1.0%, after declining in March. The increase in Dibutyl Phthalate prices was mainly due to an improvement in domestic demand, where the automotive sector has been the key growth producer. Increased vehicle production and related component manufacturing supported a mild uplift in plasticizer consumption, which in turn stabilized Dibutyl Phthalate prices. Other downstream sectors like construction and packaging were much slower and contributed less to overall Dibutyl Phthalate market recovery.
On the supply side, April saw stable domestic production of Dibutyl Phthalate. Local manufacturers ensured adequate output levels, supported by reliable availability of feedstock n-butanol. Most plants were running at moderate to high utilization rates and provided as much as possible to meet regional demand. Producers were able to flex up or down as market conditions would dictate and could match production by end-user levels to avoid over-supplying.
Demand levels in April were capital abating, but not at the consumer level. There was a positive upward price trend of Dibutyl Phthalate contributing to demand from automotive. Areas like construction and packaging continued to languish behavior, hindering an overall expansion of consumer behavior. By the end of the month, economic sentiment had produced a more positive reaction from purchasers in anticipation of new season demand conditions, and new inquiries were being generated.
Looking ahead, participants in the Indian market expect Dibutyl Phthalate demand to slowly improve in the upcoming weeks of May with the anticipated growth in infrastructure and industrial work. Buyers will probably be slow in their procurement, trying to control costs while learning to restock as demand shifts.
