SRF: R-22 price rose to Rs331/kg (+10.7% QoQ) in Q3FY23-TD, but volumes were down 30.4% YoY to 1.6kte. In packaging films segment, spreads contracted QoQ for both BOPET and BOPP, which should incrementally put pressure on SRF’s packaging films margin.

Gujarat Fluorochemicals: PTFE price jumped 5.9% QoQ / 24.1% YoY to Rs1,025 while volumes fell 15.4% YoY to 2kte. Other fluoropolymer prices increased 1.6% QoQ, and volumes surged 259% YoY to 740te.

Archean Chemical: Bromine price dipped 1.6% QoQ and volumes dipped 40.6% YoY to 1.3kte while SOP price rose 2.7%.

Clean Science: We expect Clean Science’s Q3FY23 margins to be helped by 1.4% QoQ rise in guaiacol price to Rs388 and 12.3% QoQ decline in phenol price to Rs107.

Galaxy Surfactants: Lauryl alcohol price dipped in Q3FY23-TD to Rs150, down 21.5% QoQ; this should help Galaxy improve its volumes as a result of reducing cost pressures for FMCG companies.

Rossari Biotech: Four key raw material prices have started falling, which should aid margin improvement.

EPL: Should see some relief in margin pressures due to fall in polymer price (down 8.2% QoQ).

Sudarshan Chemical: Pigment prices were down 2.8% QoQ and volumes down 39.8% YoY to 12.6kte.

PCBL: Carbon black export price fell 6.9% QoQ to Rs129 while export volumes were down 10.3% YoY.

(Note: All prices are in Rs/kg; Q3FY23-TD data is only for Oct’22 and Nov’22)

SRF Ltd: Packaging films spreads declined

R-22 price jumped 10.7% QoQ (28.7% YoY) to Rs331 in Q3FY23-TD. Fluorspar (acid spar) price inched up 3.0% QoQ / 35.6% YoY to Rs39. R-22 spread (to fluorspar and chloroform) was Rs209 vs Rs177 in Q2FY23. R-22 price dipped to Rs329, down 1.0% MoM in Nov’22. Export volumes contracted 30.4% YoY to 1.6kte. We are incrementally concerned about the rapid decline in R-22 export volumes, which could be structural. The domestic market may have a similar trend (basically, shift to HFC is happening faster than expected).

· MDC (methylene chloride) price fell 29.3% QoQ / 32.9% YoY to Rs39; methanol and chlorine prices have increased. Our analysis suggests spread/margin in MDC for SRF should be lower QoQ. MDC import volumes fell 28.4% YoY to 12kte. MDC prices were down 10.0% MoM to Rs38 in Nov’22.

· NTCF price was down 3.2% QoQ / 3.9% YoY to Rs128 in Q3FY23-TD. Caprolactam price dipped 15.7% QoQ / 9.0% YoY to Rs149. NTCF-caprolactam spread was negative at Rs21 vs a negative Rs45 in Q2FY23. Notably, NTCF import volumes shrank 50.4% YoY to 7.0kte.

· BOPET price was down 14.0% QoQ / 6.8% YoY to Rs140. PTA price declined 14.5% QoQ / rose 12.8% YoY to Rs70, and MEG price was down 6.4% QoQ and 29.0% YoY at Rs41. BOPET-PTA/MEG spread contracted 15.1% QoQ and 14.8% YoY to Rs65 (vs Rs77 in Q2FY23). On MoM basis, spread contracted 5.2% to Rs64 in Nov22.

· BOPP price dipped 7.7% QoQ / 7.7% YoY to Rs169 while polypropylene (PP) price dipped 1.4% QoQ / 21.3% YoY to Rs86. BOPP-PP price spread contracted 13.4% QoQ and rose 12.1% YoY to Rs84 (vs Rs97 in Q2FY23).

Gujarat Fluorochemicals – PTFE price continues to be strong

· PTFE price was up 5.9% QoQ / 24.1% YoY to Rs1,025 (vs Rs967 in Q2FY23). PTFE (to fluorspar) spread rose 6.2% QoQ and 23.0% YoY to Rs924 (vs Rs870 in Q2FY23). PTFE export volumes were down 15.4% YoY to 2kte.

· Other fluoropolymers (except PVDF) price rose 1.6% QoQ / 38.4% YoY to Rs2,439 (vs Rs2,402 in Q2FY23). Export volumes surged 259% YoY to 740te.

· R-22 price rose 10.7% QoQ / 28.7% YoY to Rs331. Fluorspar (acid spar) price was up 3.0% QoQ / 35.6% YoY to Rs39. R-22 spread (to fluorspar and chloroform) was Rs209 vs Rs177 in Q2FY23.

· Caustic soda price rose 4.0% QoQ / 16.2% YoY to Rs59 (vs Rs57 in Q2FY23).

· MDC (methylene chloride) price dipped 29.3% QoQ / 32.9% YoY to Rs39 while methanol and chlorine prices have increased. Our analysis suggests spread for MDC is likely to be lower QoQ.

Archean Chemical – Bromine price is firm

· Bromine price was down 1.6% QoQ and up 24.1% YoY to Rs424 (vs Rs431 in Q2FY23). Export volumes were down 40.6% YoY to 1.3kte.

· SOP price rose 2.7% QoQ / 136% YoY to Rs75 (vs Rs73 in Q2FY23). Export volumes was down 95.6% to 112te.

Clean Science – Phenol price decline will aid margins

· Guaiacol price was up 1.4% QoQ and 13.8% YoY to Rs388 (vs Rs382 in Q2FY23).

· Phenol price dipped 12.3% QoQ but rose 0.7% YoY to Rs107 (vs Rs122 in Q2FY23).

· Methanol price rose 7.8% QoQ / fell 25.3% YoY to Rs26. Acetic anhydride price was up 5.3% / down 8.2% YoY to Rs107.

Galaxy Surfactants (GSL): Lauryl alcohol prices fell sharply

· Lauryl alcohol price stood at Rs150, down 21.5% QoQ and 4.4% YoY, vs Rs191 in Q2FY23. In Nov’22, price dipped 3.7% MoM to Rs148.

· Price of LAB (linear alkyl benzene), a petroleum-based surfactant, was down 6.7% QoQ, but up 18.1% YoY to Rs154.

Rossari Biotech: Input price inflation eases

· Rossari uses four key input materials – surfactants, acetic acid, acrylic acid and silicone oil.

· Price of lauryl alcohol, key basic raw material for surfactants, was Rs150, down 21.5% QoQ / 4.4% YoY, vs Rs191 in Q2FY23.

· Acetic acid price dipped 17.6% QoQ / 46.4% YoY to Rs41 in Q3FY23-TD (vs Rs50 in Q2FY23) and was down 1.2% MoM at Rs41 in Nov’22.

· Acrylic acid price fell 32.5% QoQ / 32.3% YoY to Rs113 (vs Rs167 in Q2FY23). It was down 3.5% MoM at Rs111 in Nov’22.

· Silicone oil price was down 5.3% QoQ / up 7.1% YoY to Rs450 in Q3FY23-TD (vs Rs475 in Q2FY23).

EPL Ltd: Decline in polymer price

· Price of LLDPE, a key input for laminates, was Rs90, down 8.2% QoQ / 8.1% YoY, vs Rs98 in Q2FY23. It rose 0.7% MoM to Rs90 in Nov’22.

Chemplast Sanmar: PVC import volumes rose in Q3FY23-TD

· Paste PVC price increased 11.2% QoQ / 48.0% YoY to Rs184. Chemplast buys EDC for paste PVC, price of which has plummeted 40.2% QoQ / 58.7% YoY to Rs29. Paste PVC-EDC spread stood at Rs137 in Q3FY23-TD vs Rs87 in Q2FY23. EDC prices rose 9.8% MoM to Rs30 in Nov’22.

· Suspension PVC (S-PVC) price was down 20.3% QoQ / 30.2% YoY to Rs79. VCM price dipped 9.1% QoQ / 39.6% YoY to Rs65. S-PVC-VCM spread was Rs13 in Q3FY23-TD vs Rs27 in Q2FY23. VCM prices dipped 0.9% MoM to Rs65.

· MDC (methylene chloride) price dipped 29.3% QoQ / 32.9% YoY to Rs39 while methanol and chlorine prices have increased. Our analysis suggests spread for MDC is likely to be lower QoQ.

· Caustic soda price was up 4.0% QoQ / 16.2% YoY to Rs59 (vs Rs57 in Q2FY23).

· Paste PVC import volumes rose 39.8% YoY to 3kte; S-PVC volumes were up 1.8% YoY to 80kte.

Sudarshan Chemical (SCIL): Organic pigment export volumes shrink

· Organic pigment price fell 2.8% QoQ / rose 9.5% YoY to Rs645 in Q3FY23-TD vs Rs663 in Q2FY23. Organic pigments are inclusive of all colours including CPC. Export volumes were down 39.8% YoY at 12.6kte. There has been a slowdown in demand for pigments (particularly for plastics segment), which has hurt export volumes.

· Azo pigment mixture price was down 5.9% QoQ / up 7.8% YoY to Rs513 while its export volumes fell 19.4% YoY to 7.3kte.

· Inorganic pigment price was up 3.6% QoQ / 6.0% YoY to Rs117 vs Rs113 in Q2FY23.

PCBL: Carbon black export prices dipped in Oct’22

· Carbon black price was down 6.9% QoQ, but up 47.2% YoY to Rs129 (vs Rs139 in Q2FY23). Export volumes were down 10.3% YoY to 28.6kte. Price dipped 2.6% MoM to Rs127 in Nov’22.

Atul Ltd

· 2,4-D price rose 1.5% QoQ / 6.3% YoY to Rs268. Export volumes rose 42.5% YoY to 7.5kte.

· Paracresol price inflation was 2.7% QoQ / 20.0% YoY at Rs304. Export volumes were down 71.9% YoY to 0.5kte.

· Epoxy price was down 20.6% QoQ / 29.5% YoY at Rs253. Export volumes rose 21.5% YoY to 5.1kte.

· Resorcinol price rose 2.2% QoQ / 32.7% YoY to Rs852. Export volumes contracted 87.3% YoY to 41te.

Vinati Organics

· Ibuprofen price dipped 0.2% QoQ / 4.0 YoY to Rs1,141 (vs Rs1,144 in Q2FY23).

· IBB price was up 3.4% QoQ (20.6% YoY) to Rs205.