R-22 prices rose to Rs 257 (33.9% YoY), keeping pace with inflation in other benchmark gases. This will lead to growth in SRFF. , Navin Fluorine and Gujarat Fluorochemicals (GFL) to benefit. In the packaging films segment, BOPET spreads increased from the previous quarter, but BOPP spreads declined from the previous quarter.

SRF expects new production lines to come online, which may put pressure on margins in the near term. Long-term margins in Technical Textiles may not be able to sustain at current levels as NTCF imports remain high due to higher prices from domestic players.

Since December 2021, lauryl alcohol prices have started rising again. Inflation in Rosari Biotech's four major raw materials will put pressure on the company's margins.

Pigment prices have risen (in favor of Sudarshan Chemical), but 2022 Inflation is not yet complete in the third quarter. Premier League will continue to be challenged by rising polymer prices. GFL will benefit from increased production and realization of increase in PTFE. Increased carbon black exports from PCBL.

(Note: All prices are in Rs/kg)

SRF Ltd: R-22 prices rise; strong spread in packaging films;

R-22 prices increased by 33.9% (64.1%) YoY to Rs 257% in Q3 2022. Fluorite (Acid Crystal) prices were at Rs 29, up 8.0% YoY and down 2.6% YoY. R-22 spread (Fluorite and Chloroform) stood at Rs. 150 as compared to Rs. 87 in Q2 FY2022. R-22 prices increased by 2.7% YoY to Rs. 289 in December 2021. Exports have declined by 37% to 3,000 units as compared to last year. MDC (Methylene Chloride) price at Rs. 58 increased by 8.0%/74.8% YoY and Chlorine price also increased. Our analysis suggests that SRF MDC should be lower Spread/Margin. Q3 2022 NTCF Prices were at Rs 133, up 33.7% YoY and down 6.7% YoY. Since Lactam increased by 0.2% YoY and 98.1% YoY to Rs 164%. NTCF-lactam spread was minus Rs 31 as compared to minus Rs 64 in Q2 FY2022. Of this, NTCF imports reached 186,000 units, up 148% YoY (down 19.5% YoY). BOPET prices rose 10.6% YoY and 34.8% YoY to Rs 150%. PTA prices were up 9.6% YoY/76.9% YoY to Rs 62% and MEG prices were up 16.5% YoY/71.0% YoY to Rs 58%. The BOPETPTA/MEG spread increased by 9.9% MoM and 10.5% YoY to Rs 77% (Rs 70 in Q2 FY2022). On a monthly basis, the December 21 7.7% daily spread rose 7.7% to Rs 80. BOPP prices rose 6.5% YoY/32.5% on a year-on-year basis to Rs 183%, while polypropylene (PP) prices rose 12.6% YoY/58.9% on a percentage basis to Rs 109%. BOPP-PP spread declined by 1.3% MoM and increased by 6.6% YoY to Rs 75%. Navin Fluoride (NFIL): R-22 spreads improve

R-22 prices rose 33.9%/64.1% YoY to Rs 257%. Fluorite (acid crystal) prices rose 8.0% YoY and declined 2.6% YoY to Rs 29. R-22 spread (Fluorspar and Chloroform) stood at Rs. 150 as compared to Rs. 87 in Q2 FY2022. NFIL it will continue to be positively impacted by lower chloroform prices. Chemplast Sanmar: Lower PVC spreads

PVC paste prices rose 4.5% YoY and 13.3% YoY to Rs 124. Chemplast purchased EDC Paste PVC at Rs 69, up 30.9% YoY and 161.1% on a year-on-year basis. Quarterly-EDC spread for pasted PVC was Rs 10 in Q3 FY2020 as compared to Rs 32 in Q2 FY2002. Suspended Polyvinyl Chloride (S-PVC) prices rose by 14.5% QoQ and 62.8% YoY to Rs 113%. VCM prices increased by 31.6% YoY and 54.6% YoY to Rs. 108%. S-PVC-VCM spread was Rs. 5 in Q3 FY2022 and Rs. 16 in Q2 FY2022. MDC (Methylene Chloride) prices at Rs 58 declined by 8.0% YoY as Chlorine prices increased. Our analysis has shown a consistent decline in MDC spreads for Chemplast. Caustic soda prices rose 68.6% YoY and 124.3% YoY to Rs. 51% (Rs. 30% in FY2 FY2022). In Q3 FY2022, PVC slurry imports declined 35% YoY to 3,300 units and S-PVC sales increased 11% YoY to 118,000 units. Sudarshan Chemical (SCIL): organic pigments realization up 21.1% YoY

Organic pigments prices increased by 5.4% YoY/21.1% YoY to Rs. 589% in Q3 FY2022 as compared to Rs. 558 in Q2 FY2020. Organic pigments include all colors including CPC. Exports grew by 3.4% to 32,000 units in Q3 FY2022 as compared to the same period last year. Prices of azo pigment blends increased by 2.7%/22.0% YoY to Rs. 476 in Q3 FY 2022 as compared to Rs. 463 in Q2 FY 2020. Inorganic pigment prices increased by 5.7%/15.5% YoY to Rs. 110 from Rs. 104 in Q2 FY2022 onwards. Galaxy Surfactants (GSL): lauryl alcohol prices firm in December 2021

Compared to Rs. 160 vs. Rs. 160 in FY2 2022, lauryl alcohol prices declined by 1.9% YoY but rose by 69.3% Y-o-Y to Rs. 157%. In December 2021, it rose by 3.9% YoY to Rs. 160. LAB (straight chain alkyl benzene) petroleum based surfactant prices recorded a rise of Rs. 130, up 2.2% YoY and 70.1% YoY. Annual inflation in petroleum based surfactants has caught up with LAB. Rossari Biotech: Raw Material Prices Continue to Rise

Rossari has four main raw materials: surfactants, acetic acid, acrylic acid and silicone oil. The price of lauryl alcohol, a key ingredient in surfactants, is at Rs 157, down 1.9% YoY, but up 69.3% YoY compared to Rs 157 in Q2 FY2022 vs Rs. Acetic acid prices declined by 1.4% YoY in Q3 FY2022 and increased by 183.3% YoY to Rs. 77% (Rs. 78 in Q2 FY2022). In December 2021, prices rose 15.8% YoY to Rs 77, indicating accelerated inflation towards the end of Q3 FY2022 Acrylic prices rose 33.3% YoY and 124.9% YoY to Rs. 166% (Rs. 1,255) in the same period last year). In December 2021, acrylic prices were at Rs 179, up 9.2% YoY. Silicone oil prices rose 39.3% YoY and 97.7% YoY to Rs. 420% in Q3 FY2022 (Rs. 301 in Q2 FY2022). EPL Ltd: Polymer price hike 21st Dec again

LLDPE 2022 (key raw material for laminates) prices were pegged at Rs 98 in Q2, up 14.4% over Q2 2022 86 Rs 14.4% and 48.3% YoY. In December 2021, prices rose by 3.4% YoY to Rs 101. Vinati Organics.

Ibuprofen prices rose 4.0% YoY but fell 39.3% YoY to Rs 1,189 (Q2 FY22, Rs 1,144). IBB prices rose 4.8% YoY (40.5% YoY) to Rs 170. Atul Ltd.

Prices of 2,4-D rose 16.8% YoY (62.5% YoY) to Rs 252. Exports reached 8,000 units in Q3 2022, up 58% YoY. Cresol prices rose 37.4% YoY and 78.5% YoY to Rs 254. Exports in Q3 2022 were 3.3kte, up 29.2% YoY. Epoxy resin prices recorded Rs 358, up 3.4% YoY and 96.5% on a year-on-year basis. Exports in Q3 2022 stood at 6.5 kte, up 43.4% compared to the same period last year. As in the same period last year, resorcinol prices fell 18.5% YoY to Rs 642. Exports in the third quarter of FY2022 were recorded at 471 te, down 43.3% compared to the same period last year. Gujarat Fluorochemicals

PTFE prices rose 6.0% YoY and 20.8% YoY to Rs. 826% (Rs. 779 in FY2022). PTFE (Fluorite) spreads increased by 5.8% YoY and 23.7% YoY to Rs. 751% (Rs. 710 in FY20222). PTFE exports grew 41% YoY to 3,500 units. R-prices increased by 33.9% YoY and 64.1% YoY to Rs. 257. Fluorite (acid crystalline stone) prices rose 8.0% YoY and declined 2.6% YoY to Rs 29. R-22 spread (Fluorite and Chloroform) was Rs. 150 as compared to Rs. 87 in Q2 FY2022. GFL It will continue to be positively impacted by lower chloroform prices. Caustic soda prices rose 68.6% YoY and 124.3% YoY to Rs 51% (Rs 30 in FY2022 Q2). PCBL.

Carbon Black prices rose 1.0% YoY and 48.7% YoY to Rs 88% (Rs 87 in FY2022). Carbon Black exports increased by 44.8% YoY to 53.7 lakh units.