By: ICN Bureau
Last updated : March 09, 2021 11:07 pm
MDC prices shrunk 1.3% QoQ / 13.4% YoY to Rs33 while chorine and methanol prices increased.
R-22 export realisation slightly rose to Rs158 in Dec’20, from lows of Rs148 in Nov'20, but was yet down 15.1% QoQ at Rs157 for Q3FY21. SRF said it is seeing rise in ref-gas prices in Q4, which is encouraging, and should drive higher margins in the chemical business. R-22 export volumes were down 23.8% as anticipated from phase-down 2. BOPET-PTA/MEG prices have been softening from peak, and were down 13.9% QoQ to Rs70 in Q3FY21, but BOPP-PP spreads have been strong at Rs70 (vs Rs60 in Q2FY21). Lauryl alcohol prices rose slightly to Rs93 in Q3FY21, which explains small rise in performance surfactants realisation for Galaxy surfactants. Pigment export volumes have staged a smart rally with 11.2% YoY growth in Q3FY21, which has benefited Sudarshan Chemical.
SRF Ltd: R-22 realisation under pressure; BOPET spread dips
R-22 prices dipped 15.1% QoQ and 14.8% YoY to Rs157 in Q3FY21. Export volumes were down 12% YoY to 4,897te. Phase-down 2 (25% cut from base line quote) has hurt volumes, which were down 23.8% in CY20. Volumes in FY21E are likely to be stable. Fluorspar (acid spar) prices were down 2.9% QoQ / 13.3% YoY at Rs29. R-22 spread (to fluorspar and chloroform) was Rs97 vs Rs117 in Q2FY21.
MDC (methylene chloride) prices shrunk 1.3% QoQ / 13.4% YoY to Rs33 while chorine and methanol prices increased. This means spreads / margins in MDC have shrunk for SRF. MDC prices rose in Dec’20 (22% MoM) to Rs39.
NTCF prices declined 23.0% QoQ / 15.2% YoY to Rs142. Caprolactam was up 3.0% QoQ and down 23.9% YoY at Rs83. NTCF-caprolactam spread fell to Rs60 vs Rs105 in Q2FY21. NTCF margins as a percentage of revenues would be optically higher due to lower realisations on NTCF. India NTCF volume imports grew 34% YoY to 7,489te in Q3FY21.
BOPET prices were down 6.4% QoQ and 0.8% YoY at Rs111. PTA prices rose 7.1% QoQ / fell 25.8% YoY to Rs35 while MEG prices were up 16.0% QoQ / down 13.7% YoY at Rs34. BOPET-PTA/MEG spread contracted 13.9% QoQ, but was up 19.5% YoY to Rs70 (vs Rs81 in Q2FY21). BOPET-PTA/MEG spread hit Rs85 in Jun’20, and was thus down 23% from the recent peak (July’20). MoM fall in spreads accelerated to 8.5% in Dec’20 vs 2.5% in Nov’20.
BOPP prices rose 10.6% QoQ / 10.7% YoY to Rs139 while polypropylene (PP) prices were up 5.6% QoQ / down 1.6% YoY at Rs68. BOPP-PP price spread was at Rs70, up 26.2% YoY / 16.0% QoQ and peaked at Rs76 in Dec’20. Its QoQ rise is serving to offset some shrink in BOPET spreads for SRF, thus leading to better margins in Q3FY21.
NFIL: We see downside risk to R-22 realisation and profit in FY21
R-22 prices fell 15.1% QoQ and 14.8% YoY to Rs157. Fluorspar (acid spar) prices were down 2.9% QoQ and 13.3% YoY to Rs29. R-22 spread (to fluorspar and chloroform) was Rs97 vs Rs117 in Q2FY21. We see downside risk to our assumption of R-22 realisation and profit in FY21 on softening of prices.
Sudarshan Chemical (SCIL): Organic pigment export volumes rose 11.2% YoY
Organic pigment prices were down 0.6% QoQ while it was up 0.2% YoY to Rs486 in Q3FY21 vs Rs489 in Q2FY21. Organic pigments are inclusive of all colours including CPC. Their export volumes were up 11.2% YoY to 31.2kte during the quarter.
Azo pigment mixture prices fell 6.7% QoQ and 22.4% YoY to Rs390 vs Rs417 in Q2FY21. Volumes were up 4.4% YoY to 14.0Kte.
Inorganic pigment prices were up 2.7% QoQ and 7.5% YoY to Rs96 vs Rs93 in Q2FY21.
Galaxy Surfactants (GSL): Lauryl alcohol prices stable
Lauryl alcohol prices were at Rs93, up 1.0% QoQ and 12.2% YoY, vs Rs92 in Q2FY21.
Vinati Organics
Ibuprofen prices fell 24.8% QoQ and 25.4% YoY to Rs1,959 (vs Rs2,605 in Q2FY21).
IBB prices were down 10.5% QoQ and 15.1% YoY to Rs121 vs Rs135 in Q2FY21.
Atul Ltd
2,4-D prices were flattish QoQ and down 2.1% YoY to Rs155. Export volumes were up 7.8% YoY at 5,073te.
Para cresol prices decline 16.9% QoQ and 25.7% YoY at Rs142. Export volumes shrunk 25.2% YoY to 2,566te.
Epoxy prices rose 16.8% QoQ and 13.6% YoY to Rs182 while export volumes dropped 33% YoY to 4,501te.
Resorcinol prices increased by 5.7% QoQ and 2.8% YoY to Rs643 and export volumes saw 43% YoY decline to 830te.
Gujarat Fluorochemicals
PTFE prices were flattish QoQ while it rose 3.6% YoY to Rs684 (vs Rs683 in Q2FY21). PTFE (to fluorspar) spread was up 0.4% QoQ and 6.2% YoY to Rs607 (vs Rs605 in Q2FY21). Export volumes were 9.0% YoY higher at 2,464te.
(Note: All prices stated are in Rs/kg)