ICICI Securities said that the prices of specialty chemicals during April –May 2021 were severely disrupted due to commodity price volatility and logistic issue. Thus, spreads will be distorted and not representative, it said in a note.

The brokerage said that R-22 prices have started moving up with normalisation of demand and SRF management did indicate better pricing situation for ref-gases. NTCF-caprolactam spreads are unusually low and should improve in subsequent months as highlighted by SRF.

Meanwhile, "Rossari Biotech’s key raw materials have seen sharp rise in prices, which was also visible from dip in gross margins for company in Q1FY22. Pigment prices have seen increase, which is good for Sudarshan Chemical, but it is to be seen how much raw material inflation gets passed on to customers," ICICI Securities said.

It said that pigment prices have seen increase, which is good for Sudarshan Chemical, but it is to be seen how much raw material inflation gets passed on to customers.

SRF Ltd: Quarterly trend distorted due to commodity volatility

 R-22 prices rose 9.9% QoQ (fell 2.4% YoY) to Rs195 in Q1FY22. Fluorspar (acid spar) prices were 8.8% QoQ / 17% YoY lower at Rs26. R-22 spread (to fluorspar and chloroform) was at Rs109 vs Rs114 in Q4FY21.

 MDC (methylene chloride) prices rose 18% QoQ / 32% YoY to Rs46, while methanol has increased sharply but chlorine prices have declined. Our analysis suggests spreads / margins in MDC for SRF should have improved significantly. MDC prices rose 2.7% MoM to Rs47 in May’21.

 NTCF prices declined 20.8% QoQ / 29.2% YoY to Rs139 in Q1FY22. Caprolactam was up 20.2% QoQ and 39.2% YoY at Rs137. NTCF-caprolactam spread fell to Rs2 vs Rs62 in Q1FY22. This is significantly different compared to massive margin expansion seen for SRF in technical textiles business in Q1FY22, and management commentary on structural margin expansion. We believe the difference could be more timing difference and spreads should improve in coming months, in-line with company’s comments even for trade data.

 BOPET prices were up 13.1% QoQ / 8.2% YoY at Rs135. PTA prices rose 28.4% QoQ / 42.1% YoY to Rs54 and MEG prices were up 15.2% QoQ / 68% YoY at Rs51. BOPET-PTA/MEG rose 4.5% QoQ / down 12.9% YoY to Rs71 (vs Rs68 in Q4FY21). However, on MoM basis, spreads were down 10.5% in May’21.

 BOPP prices rose 20.4% QoQ / 44.3% YoY to Rs180 while polypropylene (PP) prices were up 19.5% QoQ / 85% YoY at Rs107. BOPP-PP price spread was Rs73, up 21.6% QoQ and 9.2% YoY. On MoM basis, the spread was Rs88 in May’21 from Rs51 in Apr’21.

NFIL: Fluorspar prices trend positive for company

 R-22 prices rose 9.9% QoQ, but fell 2.4% YoY to Rs195. Fluorspar (acid spar) prices were down 8.8% QoQ and 17% YoY to Rs26. R-22 spread (to fluorspar and chloroform) was Rs109 vs Rs114 in Q4FY21. NFIL should have lower benefit from higher chloroform prices, which were up 2x QoQ to Rs35.

Sudarshan Chemical (SCIL): Organic pigment realisation up 8.3% YoY

 Organic pigment prices were up 7.2% QoQ / 8.3% YoY to Rs545 in Q1FY22 vs Rs509 in Q4FY21. Organic pigments are inclusive of all colours including CPC. Their export volumes were up 54% YoY to 22kte in Q1FY22.

 Azo pigment mixture prices rose 4.6% QoQ, but were down 6.8% YoY to Rs427 vs Rs408 in Q4FY21.

 Inorganic pigment prices were up 3.5% QoQ and 16% YoY to Rs103 vs Rs100 in Q4FY21.

Galaxy Surfactants (GSL): Lauryl alcohol prices rose sharply vs LAB

 Lauryl alcohol prices were Rs156, up 27.7% QoQ and 60.8% YoY, vs Rs122 in Q4FY21.

 LAB (linear alkyl benzene), a petroleum based surfactant, price was up 24.7% QoQ / 32.4% YoY to Rs110. Clearly, inflation in petroleum-based surfactants has been lower than oleo-chemical surfactants.

Rossari Biotech: Input material prices continue to remain elevated

 Rossari has four key input raw materials – surfactants, acetic acid, acrylic acid and silicone oil.

 Lauryl alcohol, key basic raw material for surfactants, prices were Rs156, up 27.7% QoQ and 60.8% YoY, vs Rs122 in Q4FY21.

 Acetic acid price has increased 52% QoQ / 176% YoY to Rs69 in Q1FY22 (vs Rs46 in Q4FY21). In the month of May’21, the price was Rs74, up 14% MoM, which means inflation can remain high even in Q2FY22.

 Acrylic acid price has risen 19% QoQ / 45% YoY to Rs112 (vs Rs94). However, acrylic acid was Rs122 in the month of May’21, which was up 15.5% QoQ.

 Silicone oil prices stood at Rs294, up 23.6% QoQ / 29.1% YoY in Q1FY22 (vs Rs237 in Q4FY21).

EPL Ltd: Polymer price inflation high

 LLDPE, a key input for laminates, prices were Rs89, up 20.3% QoQ and 38.8% YoY, vs Rs74 in Q4FY21. The price was Rs93 in the month of May’21, up 6.8% QoQ.

Vinati Organics

 Ibuprofen prices declined 41.6% QoQ and 62.9% YoY to Rs1,268 (vs Rs2,171 in Q4FY21).

 IBB prices increased by 16.8% QoQ (11% YoY) to Rs147 vs Rs126 in Q4FY21.

Atul Ltd

 2,4-D prices rose 17.8% QoQ and 31.3% YoY to Rs194.

 Para-cresol prices increased 14.6% QoQ and declined 10.3% YoY at Rs170.

 Epoxy prices were 38.3% QoQ and 99% YoY higher at Rs336. Epoxy spread was Rs98 in Q1FY22 (vs Rs124 in Q4FY21).

 Resorcinol prices dipped 0.3% QoQ and 0.1% YoY to Rs662.

Gujarat Fluorochemicals

 PTFE prices were up 6.0% QoQ and 6.2% YoY to Rs735 (vs Rs693 in Q4FY21).

PTFE (to fluorspar) spread was up 7.8% QoQ and 9.3% YoY to Rs667 (vs Rs619 in Q4FY21).