Mumbai, India: India’s C9 Solvent market showcased a stable price trend this week. With unprecedented fluctuations in the upstream crude oil value, the solvent traders were observed to be in a strong wait-and-see mood. As per our sources, the terminal demand also declined with the rise in inflationary levels across the domestic market.

According to the ChemAnalyst Database, both Ex-Mumbai and Ex-Dahej price discussions experienced a marginal hike of 0.6 per cent in the domestic market. The overall demand fundamentals from the domestic solvent players were sluggish with upraised input costs. Furthermore, the production activities in the country were lower than expected over the past few weeks.

India has been heavily reliant on imports to meet its oil requirements. Recently, the petrochemical market witnessed a drastic rise in the Indian crude basket, pushing crude oil prices—the value hit beyond 121 US Dollars per barrel. With a continuous upsurge in upstream pricing, the crude derivative C9 Solvent traders were under immense cost pressure. As a result, the Indian refiners planned to take advantage of the Russian Crude oil, which is being sold at a much-discounted price. To ease the pressure and promote petrochemical market growth, central and private oil refiners in the country have increased their crude intake from Russia, making it the second-largest oil supplier. As per the Petrochemical Database, Indian refiners have increased their imports by more than 16% in the previous month. They were heard purchasing approximately 25 million barrels of oil at a discount as high as USD 30 per barrel.

“The bullish market dynamics of C9 Solvent in India are predicted to witness relaxation in the coming weeks with the rise in oil imports from Russia. Also, India is planning to buy Russian oil at much-lower prices with USD 70 per barrel, which ultimately leads to the price drop of most commodities across the domestic market. With rebounding terminal demand, the downstream solvent player’s mood might brighten in the forthcoming period, and thereby, the industrial consumption is likewise expected to improve in India,” as per ChemAnalyst.