R-22 price rose to Rs293/kg (9.4% QoQ / 52.7% YoY) in Q2FY23-TD, but volumes were down 33.4% YoY to 943te. The volume drop is concerning as it could be an accelerated decline in demand for R-22, which can spill to domestic market.

Domestic R-22 is a highly profitable product. In packaging film segment, spreads have dipped QoQ for BOPET, while they have improved for BOPP. BOPET spread dip was expected due to new capacity expansion. Lauryl alcohol price dipped in Q2FY23 (July’22) and is now at Rs219, down 5.2% QoQ; this should relatively help Galaxy Surfactants see better volumes on reducing cost pressure for FMCG companies.

Rossari Biotech’s four key raw materials’ inflation decelerated which has helped the company accrue the benefit of price hike and improve margins. Pigment prices have marginally increased on a QoQ basis; however, volume has declined due to lower demand from plastic segment.

EPL should see a relief in margins due to decline in polymer price, which was down 2.4% QoQ. PTFE price increased at Rs954, up 2.0% QoQ / 22.5% YoY. PTFE volumes declined 21.7% YoY to 1.2kte. Carbon black export price increased 9.8% QoQ to Rs136, which will help PCBL improve spread; export volumes were up 2.2% YoY.

 (Note: All prices are in Rs/kg; and Q2FY23 data is for only one month – July’22)

: R-22 price moves up; packaging film (BOPET) spreads dip

· R-22 price rose 9.4% QoQ (52.7% YoY) to Rs293 in Q2FY23-TD. Fluorspar (acid spar) price was up 0.6% QoQ / 38% YoY to Rs37. R-22 spread (to fluorspar and chloroform) was Rs174 vs Rs139 in Q1FY23. R-22 price rose to Rs293, up 3.6% MoM in Jul’22. Export volumes were down 33.4% YoY to 944te. We are incrementally concerned on the accelerated exports volume decline in R-22 which could be structural; domestic market may have a similar trend (basically shift to HFC is faster than expected). Domestic R-22 is one of the most profitable products.

· MDC (methylene chloride) price rose 0.5% QoQ / up 10.8% YoY to Rs59; methanol price has dipped, while chlorine price has increased. Our analysis suggests spread/margin in MDC for SRF should be lower as new capacity has been commissioned in India. MDC import volumes have dipped by 43.5% YoY to 4.4kte.

· NTCF price was down 4.2% QoQ / up 42.7% YoY to Rs142 in Q2FY23-TD. Caprolactam price rose 5.9% QoQ / 13.1% YoY to Rs185. NTCF-caprolactam spread was negative at Rs43 vs negative Rs26 in Q1FY23. Notably, NTCF import volumes rose 12.8% YoY to 6kte.

· BOPET price grew 0.2% QoQ / 24.9% YoY to Rs169. PTA price rose 8.2% QoQ / 44.4% YoY to Rs82, and MEG price was down 5.2% QoQ and 2.2% YoY at Rs48. BOPET-PTA/MEG spread dipped 4.7% QoQ / up 17.8% YoY to Rs82 (vs Rs86 in Q1FY23). On a MoM basis, spread was down 0.9% at Rs82 in Jul’22.

· BOPP price dipped 4.3% QoQ / up 11.8% YoY at Rs193 while polypropylene (PP) price was down 12.3% QoQ / 0.5% YoY to Rs96. BOPP-PP price spread rose 5.3% QoQ / 27.6% YoY at Rs97 (vs Rs92 in Q1FY23). 

Chemplast Sanmar: VCM and EDC prices have dropped in July’22

· Paste PVC price increased 4.6% QoQ/32.5% YoY to Rs158. Chemplast buys EDC for paste PVC, price of which has dipped 5.2% QoQ / up 11.0% YoY to Rs59. Paste PVC-EDC spread stood at Rs61 in Q1FY23 vs Rs49 in Q1FY23. EDC prices have risen 1.6% MoM to Rs59.

· Suspension PVC (S-PVC) price dipped 4.3% QoQ / up 10.6% YoY to Rs109. VCM price dipped 13.3% QoQ / up 5.6% YoY at Rs86. S-PVC-VCM spread was Rs22 in Q2FY23 vs Rs14 in Q1FY23. VCM prices have dropped 6.4% MoM to Rs86.

· MDC (methylene chloride) price rose 0.5% QoQ / 10.8% YoY to Rs59; methanol price has dipped, while chlorine price has increased. Our analysis suggests Chemplast spread for MDC is likely to be stable QoQ.

· Caustic soda price was down 2.2% QoQ / up 93.7% YoY to Rs58 (vs Rs60 in Q1FY23).

· Paste PVC import volumes rose 71.4% YoY to 1.8kte; S-PVC volumes rose 58.4% YoY to 39.2kte.

Sudarshan Chemical (SCIL): Organic pigment export volumes dip

· Organic pigment price rose 3.2% QoQ / 21.2% YoY to Rs677 in Q2FY23-TD vs Rs656 in Q1FY23. Organic pigments are inclusive of all colours including CPC. Export volumes were down 17.6% YoY at 9.6kte. Pigment has suffered a slowdown in demand (particularly for plastics segment) which has hurt export volumes.

· Azo pigment mixture prices dipped 1.7% QoQ / up 15.8% YoY to Rs536 vs Rs545 in Q1FY23. Azo pigment mixture export volumes rose 1.3% YoY to 4.4kte.

· Inorganic pigment price was down 6.2% QoQ / up 7.9% YoY to Rs113 vs Rs120 in Q1FY23.

Galaxy Surfactants (GSL): Lauryl alcohol prices soften in July’22

· Lauryl alcohol price stood at Rs219, down 5.2% QoQ and up 37.2% YoY, vs Rs232 in Q1FY23. In Jul’22, price dipped 7% MoM to Rs219.

· Price of LAB (linear alkyl benzene), a petroleum-based surfactant, was up 8.1% QoQ / 29.2% YoY to Rs165.

Rossari Biotech: Input price inflation easing in a few products

· 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 Rs219, down 5.2% QoQ / 37.2% YoY, vs Rs232 in Q1FY23.

· Acetic acid price rose 0.3% QoQ / down 30.6% YoY to Rs54 in Q2FY23-TD (vs Rs54 in Q1FY23).

· Acrylic acid price was up 2.3% QoQ / 46.3% YoY to Rs183 (vs Rs178 in Q1FY23). Price remained stable MoM at Rs183 in Jul’22.

· Silicone oil price was down 3.5% QoQ/ up 71.5% YoY to Rs517 in Q2FY23-TD (vs Rs536 in Q1FY23).

EPL Ltd: Dip in polymer price

· Price of LLDPE, a key input for laminates, was Rs104, down 2.4% QoQ / up 21.3% YoY, vs Rs106 in Q1FY23. It dipped 5.4% MoM to Rs104 in Jul’22.

Vinati Organics

· Ibuprofen price rose 5.1% QoQ / 6.5% YoY to Rs1,218 (vs Rs1,159 in Q1FY23).

· IBB price rose 4.3% QoQ (22.6% YoY) to Rs199.

Atul Ltd

· 2,4-D price dipped 1.6% QoQ/ up 22.1% YoY to Rs264. Export volumes dipped 1% YoY to 2.5kte.

· Paracresol price inflation 6.0% QoQ and 64% YoY at Rs303. Export volumes dipped 30.2% YoY to 517te.

· Epoxy price was down 3.4% QoQ and 10.1% YoY at Rs311. Export volumes rose 25.6% YoY to 2.6kte.

· Resorcinol price rose 8.5% QoQ/ 2.6% YoY to Rs809. Export volumes dipped 55.8% YoY to 17te.

Gujarat Fluorochemicals – PTFE price steady

· PTFE price was up 2.0% QoQ/ 22.5% YoY to Rs954 (vs Rs935 in Q1FY23). PTFE (to fluorspar) spread rose 2.1% QoQ and 21.0% YoY to Rs859 (vs Rs841 in Q1FY23). PTFE export volumes were down 21.7% YoY to 1.2kte.

· R-22 price rose 9.4% QoQ / 52.7% YoY to Rs293. Fluorspar (acid spar) price was up 0.6% QoQ / 38.0% YoY to Rs37. R-22 spread (to fluorspar and chloroform) was Rs174 vs Rs139 in Q1FY23.

· Caustic soda price was down 2.2% QoQ / up 93.7% YoY to Rs58 (vs Rs60 in Q1FY23).

PCBL – carbon black export prices increase

· Carbon black price was up 9.8% QoQ and 56.3% YoY to Rs136 (vs Rs124 in Q1FY23). Export volumes were up 2.3% YoY to 16kte. Price increased 3.2% MoM to Rs136 in Jul’22.

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