Specialty chemicals price trends in April 2023
Chemical

Specialty chemicals price trends in April 2023

Bromine prices declined 41.4% QoQ, volumes dipped 61.3% YoY to 377te while SOP prices rose 3.7% QoQ.

  • By ICN Bureau | June 19, 2023

SRF: R-22 prices rose to Rs356/kg (+2.1% QoQ) in Q1FY24-TD; volumes were up 111.4% YoY to 1.9kte. In packaging films segment, spreads contracted QoQ for both BOPET and BOPP, which will put pressure on SRF’s packaging films margin in Q1FY24.

Gujarat Fluorochemicals: PTFE prices declined 2.0% QoQ / rose 10.0% YoY to Rs1,029 while volumes dipped 12.8% YoY to 845te. Other fluoropolymer prices rose 1.4% QoQ and volumes surged 73.5% YoY to 298te.

Archean Chemical: Bromine prices declined 41.4% QoQ, volumes dipped 61.3% YoY to 377te while SOP prices rose 3.7% QoQ.

Clean Science: Q1FY24 margins were likely boosted by 12% QoQ rise in guaiacol prices to Rs399, partly offset by 3.6% QoQ rise in phenol prices to Rs94.

Galaxy Surfactants: Lauryl alcohol prices have risen in Q1FY24-TD to Rs140, up 5.5% QoQ.

Rossari Biotech: Key raw material prices have stabilised at lower levels, which should aid margin improvement.

EPL: gross profit is likely to improve with stability in LLDPE prices.

Sudarshan Chemical: Pigment prices were down 4.9% QoQ and volumes were down 20.2% YoY to 8.3kte.

PCBL: Carbon black export prices fell 2.8% QoQ to Rs105, but export volumes were up 20.6% YoY.

(Note: All prices are in Rs/kg, data for Q1FY24 only includes Apr’23)

SRF Ltd: Packaging films spreads continue to decline

· R-22 prices jumped 2.1% QoQ (32.8% YoY) to Rs356 in Q1FY24-TD. Fluorspar (acid spar) prices increased 6.2% QoQ / 18.1% YoY to Rs43. R-22 spread (to fluorspar and chloroform) was Rs246 vs Rs235 in Q4FY23. R-22 prices rose to Rs352, up 1.0% MoM, in Apr’23. Export volumes were up 111.4% YoY to 1.9kte. R-22 export volumes are growing again after a steep decline in CY22. We would wait to see sustainability in volume growth in R-22, which is among SRF highly profitable products.

· MDC (methylene chloride) prices rose 10.1% QoQ / fell 15.3% YoY to Rs50; methanol and chlorine prices have dipped. Our analysis suggests spreads/margins in MDC for SRF should be higher QoQ. MDC import volumes rose 28.9% YoY to 2.8kte. MDC prices were up 10.5% MoM to Rs50 in Apr’23.

· NTCF prices were down 3.5% QoQ / 36.5% YoY to Rs94 in Q1FY24-TD. Caprolactam prices rose 21.3% QoQ / fell 12.6% YoY to Rs152. NTCF-caprolactam spread was negative at Rs58 vs negative Rs28 in Q4FY23. Notably, NTCF import volumes rose 161.1% YoY to 6.3kte on a low base (volumes rose 19% MoM in Apr’23).

· BOPET prices were down 4.1% QoQ / 26.4% YoY to Rs124. PTA prices rose 1.5% QoQ / fell 14.3% YoY to Rs65, and MEG prices were down 0.9% QoQ and 13.7% YoY at Rs44. BOPET-PTA/MEG spread contracted 10.1% QoQ and 38% YoY to Rs54 (vs Rs60 in Q4FY23). On MoM basis, spread declined 1.9% to Rs54 in Apr’23. 

· BOPP prices dipped 0.9% QoQ / 28.8% YoY to Rs143 while polypropylene (PP) prices rose 3.3% QoQ / fell 18.7% YoY to Rs89. BOPP-PP spread contracted 7.2% QoQ / 41% YoY to Rs54 (vs Rs58 in Q4FY23).

Gujarat Fluorochemicals – Fluoropolymers prices are largely stable

· PTFE prices were down 2.0% QoQ / up 10% YoY to Rs1,029 (vs Rs1,050 in Q4FY23). PTFE (to R-22) spread dipped 11.3% QoQ / 24.5% YoY to Rs281 (vs Rs317 in Q4FY23). PTFE export volumes dipped 12.8% YoY to 845te.

· Other fluoropolymers price rose 1.4% QoQ / 4.1% YoY to Rs2,316 (vs Rs2,285 in Q4FY23). Export volumes surged 73.5% YoY to 298te.

· R-22 prices increased 2.1% QoQ / 32.8% YoY to Rs356. Fluorspar (acid spar) prices were up 6.2% QoQ / 18.1% YoY to Rs43. R-22 spread (to fluorspar and chloroform) was Rs246 vs Rs235 in Q4FY23.

· Caustic soda prices fell 18.0% QoQ / 26% YoY to Rs44 (vs Rs54 in Q4FY23).

· MDC (methylene chloride) prices were up 10.1% QoQ / down 15.3% YoY to Rs50 while methanol and chlorine prices dipped. Our analysis suggests spread for MDC is likely to be higher QoQ. MDC prices were up 10.5% MoM to Rs50 in Apr’23.

Archean Chemical – Bromine volumes affected by lower demand

·   Bromine prices dipped 41.4% QoQ and 38.1% YoY to Rs248 (vs Rs423 in Q4FY23). Export volumes were down 61.3% YoY to 377te.

· SOP prices rose 3.7% QoQ / dipped 0.1% YoY to Rs53 (vs Rs51 in Q4FY23). Export volumes were up 46.6% to 221te.

Clean Science – Guaiacol export volumes dipped sharply

· Guaiacol prices were up 12% QoQ and 16.8% YoY, to Rs399 (vs Rs357 in Q4FY23).

· Phenol prices rose 3.6% QoQ / dipped 23.6% YoY to Rs94 (vs Rs91 in Q4FY23).

· Methanol prices dipped 2.8% QoQ / 11.5% YoY to Rs26. Acetic anhydride prices were up 2.4% / down 16.4% YoY to Rs91.

Galaxy Surfactants (GSL): Lauryl alcohol prices slightly rose QoQ

· Lauryl alcohol prices stood at Rs140, up 5.5% QoQ /down 39.5% YoY vs Rs133 in Q4FY23. In Apr’23, prices were up 6.9% MoM to Rs140.

· Prices of LAB (linear alkyl benzene), a petroleum-based surfactant, were up 1.9% QoQ, but down 6% YoY to Rs143.

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 raw material for surfactants, was Rs140, up 5.5% QoQ / down 39.5% YoY vs Rs133 in Q4FY23.

· Acetic acid prices rose 1.5% QoQ / dipped 30.5% YoY to Rs37 in Q4FY23 (vs Rs37 in Q4FY23) and were up 2.0% MoM at Rs37 in Apr’23.

· Acrylic acid prices rose 4.0% QoQ / declined 47% YoY to Rs95 (vs Rs91 in Q4FY23). It was up 3.7% MoM at Rs95 in Apr’23.

· Silicone oil prices were down 11.9% QoQ / 44.6% YoY to Rs297 in Q1FY24-TD (vs Rs337 in Q4FY23).

EPL Ltd: Decline in polymer prices

· Price of LLDPE, a key input for laminates, was Rs86, up 1.3% QoQ / down 19.3% YoY vs Rs85 in Q4FY23. It down 2% MoM to Rs86 in Apr’23.

Chemplast Sanmar: S-PVC import volumes were high

· Paste PVC prices rose 19.7% QoQ / 1.8% YoY to Rs154. Chemplast buys EDC for paste PVC, price of which rose 27.8% QoQ / dipped 49.9% YoY to Rs31. Paste PVC-EDC spread stood at Rs102 in Q1FY24-TD vs Rs88 in Q4FY23. EDC prices rose 16.8% MoM to Rs31 in Apr’23.

· Suspension PVC (S-PVC) prices were up 5.7% QoQ / dipped 33.9% YoY to Rs75. VCM prices rose 8.4% QoQ / fell 29% YoY to Rs71. S-PVC-VCM spread was Rs4 in Q1FY24-TD vs Rs6 in Q4FY23. VCM prices dipped 3.7% MoM to Rs71.

· MDC (methylene chloride) prices rose 10.1% QoQ / declined 15.3% YoY to Rs50, while methanol and chlorine prices dipped. Our analysis suggests spread for MDC was higher QoQ.

· Caustic soda prices were down 18.0% QoQ / 26% YoY to Rs44 (vs Rs54 in Q4FY23).

· Paste PVC import volumes were down 0.4% YoY to 1.1kte; S-PVC volumes were up 24.5% YoY to 51kte.

Sudarshan Chemical (SCIL): Organic pigment export volumes shrink

· Organic pigment prices fell 0.6% QoQ / 7.1% YoY to Rs609 in Q1FY24-TD vs Rs612 in Q4FY23. Organic pigments are inclusive of all colours including CPC. Export volumes were down 20.2% YoY at 8.3kte. There has been a slowdown in demand for pigments, which has hurt export volumes.

· Azo pigment mixture prices were up 3.1% QoQ / down 4% YoY to Rs523 while its export volumes fell 8.3% YoY to 4.1kte.

· Inorganic pigment prices were up 14.4% QoQ / 4.5% YoY to Rs125 vs Rs110 in Q4FY23.

PCBL: Carbon black export volumes have risen in Q1FY24-TD

· Carbon black prices were down 2.8% QoQ / 15.2% YoY, to Rs105 (vs Rs108 in Q4FY23). Export volumes were up 20.6% YoY to 18.8kte. Prices dipped 2.3% MoM to Rs105 in Apr’23.

Atul Ltd

· 2,4-D prices dipped 21.2% QoQ / 34.4% YoY to Rs176. Export volumes dipped 29% YoY to 2.4kte.

· Paracresol prices declined 5.8% QoQ / 8.7% YoY at Rs261. Export volumes were down 43.5% YoY to 840te.

· Epoxy prices were up 1.3% QoQ / down 22.7% YoY at Rs249. Export volumes dipped 13.6% YoY to 1.6kte.

· Resorcinol prices fell 9% QoQ / 21.8% YoY to Rs512. Import volumes dipped 10.3% YoY to 453te.

Vinati Organics

· Ibuprofen prices were down 8.3% QoQ / 8% YoY to Rs1,066 (vs Rs1,163 in Q4FY23).

· IBB prices were up 0.5% QoQ (6.3% YoY) to Rs203.

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