Rising Crude Oil Value Shot up Prices of C9 and C10 Solvent in India

Indian solvent sector has showcased firmness during this month on the back of rising demand from the domestic market coupled with high input cost. Rising crude oil value has been concerning key players in global market, which is leading to an exponential rise in prices of its immediate derivatives. As per ChemAnalyst data, taking pressure from soaring crude oil value, C9&C10 solvent shot up in Indian market during January.

As per the market sources, traders are getting cargoes on high premium, which is pushing up market sentiments of C9&C10 solvent in India. Rising cost of imported commodities has opportune domestic makers to revise their offers in order to gain better margin. In addition, demand fundamentals for the product across domestic market remained stable, as Omicron crisis came out to be less devastating than expected. There are certain reasons behind steep hike in crude oil value, including high global demand, low inventories level in USA and geopolitical tension between Russia and Ukraine which is injecting uncertainties in European market. Due to these market scenarios, crude oil value rose effectively across global market and induced buoyancy to the downstream derivatives cost.

As per ChemAnalyst data, rise of around 20.5% and 21% was observed for C9 and C10 solvent respectively during the month of January across Indian market. However, additional factors like high freight cost also remained a prime factor behind steep rise in prices of several commodities including C9&C10 solvent. As per the analysis, it is expected that, prices are likely to stay buoyant in forthcoming months, as the pricing dynamics for crude oil is not going to take significant turn any time soon in the global market.