Price trend in specialty chemicals in January 21: ICICI Securities

Price trend in specialty chemicals in January 21: ICICI Securities

Lauryl alcohol prices rose sharply to Rs102 (up 10% QoQ) in Q4FY21

  • By ICN Group | April 06, 2021

R-22 realisation slightly rose to Rs168 in Jan’21 from Rs157 in Q3FY21 and lows of Rs148 in Nov'20. SRF said ref-gas prices increased in Q4FY21, which is encouraging and should drive higher margins in the chemical business in upcoming results. BOPET-PTA/MEG prices have been softening from peak, and were down 0.9% QoQ (up 3.1% YoY) to Rs70 in Q4FY21. BOPP-PP spreads have been stable at Rs70 (vs Rs70 in Q3FY21). Lauryl alcohol prices rose sharply to Rs102 (up 10% QoQ) in Q4FY21, which means Galaxy Surfactants’ revenue growth will be optically higher. Pigment export volumes have been growing smartly, up 12.6% YoY in Jan’21, and realisations are up 5.4% QoQ, which should benefit Sudarshan Chemical.

(Note: All prices stated are in Rs/kg; Q4FY21 numbers are only for Jan’21)

SRF Ltd: R-22 realisation slightly recovers; BOPET spread stable

·         R-22 prices rose 7.0% QoQ (fell 12.8% YoY) to Rs168 in Q4FY21. Fluorspar (acid spar) prices were 5.7% QoQ / 8.5% YoY lower at Rs28. R-22 spread (to fluorspar and chloroform) was Rs112 vs Rs97 in Q3FY21. 

·         MDC (methylene chloride) prices rose 4.7% QoQ / 0.8% YoY to Rs34 while methanol prices increased; chlorine prices slightly dipped. This means spreads / margins in MDC rose for SRF. MDC prices, which increased to Rs39 in Dec’20, tapered down to Rs34 in Jan’21.

·         NTCF prices declined 18.5% QoQ / 26.2% YoY to Rs116. Caprolactam was up 20.0% QoQ and 5.4% YoY at Rs99. NTCF-caprolactam spread fell to Rs17 vs Rs60 in Q3FY21. However, SRF may report better margins on inventory gains on rise in caprolactam prices.

·         BOPET prices were up 4.5% QoQ / down 2.7% YoY at Rs116. PTA prices rose 13.5% QoQ / fell 12.4% YoY to Rs40 while MEG prices were up 14.2% QoQ / down 3.1% YoY at Rs38. BOPET-PTA/MEG spread contracted 0.9% QoQ, but was up 3.1% YoY to Rs69 (vs Rs70 in Q3FY21). However, on MoM basis, spreads were up 5.8% in Jan’21.

·         BOPP prices rose 4.6% QoQ / 11.2% YoY to Rs145 while polypropylene (PP) prices were up 9.4% QoQ / 11.4% YoY at Rs75. BOPP-PP price spread was at Rs70, flattish QoQ. However, on MoM basis, the spread shrunk to Rs70 in Jan’21 from Rs76 in Dec’20 (down 7.3%).

NFIL: R-22 realisation improved, so did spreads

·         R-22 prices rose 7.0% QoQ and fell 12.8% YoY to Rs168. Fluorspar (acid spar) prices were down 5.7% QoQ and 8.5% YoY to Rs28. R-22 spread (to fluorspar and chloroform) was Rs112 vs Rs97 in Q3FY21. NFIL should benefit from lower chloroform prices, which were down 9.2% QoQ and 39% YoY.

Sudarshan Chemical (SCIL): Organic pigment export volumes up 12.6% YoY

·         Organic pigment prices were up 5.4% QoQ / 6.5% YoY to Rs512 in Q4FY21 vs Rs486 in Q3FY21. Organic pigments are inclusive of all colours including CPC. Their export volumes were up 12.6% YoY to 10.9kte in Jan’21.

·         Azo pigment mixture prices rose 4.0% QoQ while it was down 12.4% YoY to Rs405 vs Rs390 in Q3FY21.

·         Inorganic pigment prices were up 4.0% QoQ and 4.4% YoY to Rs99 vs Rs96 in Q3FY21.

Galaxy Surfactants (GSL): Lauryl alcohol prices rose sharply

·         Lauryl alcohol prices were at Rs102, up 10.0% QoQ and 7.2% YoY, vs Rs93 in Q3FY21.

Vinati Organics

·         Ibuprofen prices rose 12.5% QoQ and 18.3% YoY to Rs2,205 (vs Rs1,959 in Q3FY21).

·         IBB prices were down 0.5% QoQ (29.0% YoY) to Rs122 vs Rs121 in Q3FY21.

Atul Ltd

·         2,4-D prices rose 2.6% QoQ and 11.4% YoY to Rs159.

·         Para-cresol prices declined 1.3% QoQ and 27.1% YoY at Rs140.

·         Epoxy prices rose 29.4% QoQ and 43.7% YoY to Rs236.

·         Resorcinol prices dipped 1.3% QoQ and 2.4% YoY to Rs634.

Gujarat Fluorochemicals

·         PTFE prices were up 1.0% QoQ while it rose 12.1% YoY to Rs690 (vs Rs684 in Q3FY21). PTFE (to fluorspar) spread was up 1.8% QoQ and 15.1% YoY to Rs618 (vs Rs607 in Q3FY21).

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