C10 Solvent Prices Sustains Stability in July 2024 Amidst Global demand Lull

Despite a bearish trend in the global market, the price of C10 Solvent in India remained stable in the first half of July 2024, driven by a balanced gap between demand and supply. The price stability was further supported by the steady cost of feedstock crude oil throughout the month. This consistent pricing trend of C10 Solvent was bolstered by the Asian freight industry's rapid growth during this period, marked by increased freight charges. The early peak season for ocean freight, disruptions from Red Sea diversions, and equipment shortages exacerbated port congestion. The unreliability of long-term contracts, with spot rates significantly higher, complicated matters for shippers.

On the inflation front, the year-on-year inflation rate based on the All-India Consumer Price Index (CPI) was provisionally reported at 5.08% for June 2024. The rural and urban inflation rates were 5.66% and 4.39%, respectively. This moderate inflation, coupled with robust industrial production, suggested a stable economic environment further supported the C10 Solvent price trend.

In the Indian market, C10 Solvent supply remained stable with no significant shortages reported. Meanwhile, in the upstream crude oil sector, the Brent crude oil spot price averaged $82 per barrel in June, unchanged from May. Prices declined to $75 per barrel on June 4 following the OPEC+ meeting on June 2, during which it was announced that 2.2 million barrels per day of voluntary cuts would gradually be unwound starting in the Q4 of 2024. This announcement led market participants to anticipate a significant increase in global oil inventories, causing the initial price drop. However, by July 3, the Brent crude oil spot price had rebounded to $88 per barrel as market participants reevaluated the situation in light of current global inventory levels and OPEC+'s indication that production cuts would remain subject to adjustment based on market conditions.

In the first half of July 2024, heavy rainfall across India led to decreased demand for C10 Solvent from the downstream paints and coating and end-use construction industry, as numerous projects were disrupted. The monsoon rainfall, which began on June 1, brought overall precipitation into surplus, with significant rainfall in northwest India and the southern peninsula and affected the demand and supply chain of C10 Solvent in the Indian market.

According to ChemAnalyst, the price of C10 Solvent is anticipated to decrease in the second half of this month. This expected decline is due to a projected fall in demand of C10 Solvent from the end-use construction sector, as the India Meteorological Department (IMD) forecasts rain across most of the Indian subcontinent. The predicted weather conditions are likely to impact the demand for C10 Solvent in the country.