FY2022 R-222 Q3 Prices increased to Rs 246 (28.0% YoY), keeping pace with inflation in other benchmark gases, which will benefit SRF, Navin Fluorine and Gujarat Fluorochemicals (GFL). In the packaging films segment, BOPET spreads increased while BOPP spreads declined.

Long-term margins for technical textiles may not be sustained at current levels as NTCF imports remain high due to higher prices from domestic manufacturers. Laurill has seen a slight decline in prices over the last two quarters and a small drop in LAB prices, but has now caught up with LA like-for-like inflation. Inflation in Rosari Biotech's four major raw materials will put pressure on the company's margins.

Pigment prices have risen, but the amount of raw material inflation that will be transmitted remains to be seen. EPL will continue to be challenged by rising polymer prices. GFL will benefit from increased production and realized increases in PTFE. Increased carbon black exports from PCBL.

(Note: All prices are Rs/kg. FY2022-3F-TD data is as of October 21 and November 21)

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

R-22 prices rose by 28.0% YoY (56.9% YoY) in Q3 FY2022 Rs. Fluorite (acid crystal) prices rose by 7.1% YoY and declined by 3.5% YoY to Rs. 28%. R-22 spread (Fluorite and Chloroform) stood at Rs. 145 as compared to Rs. 87 in Q2 FY2022. In November 2021, R-22 prices increased by 31.4% YoY to Rs 282%. Exports declined by 22% to 2,900 units as compared to the same period last year. Methylene Dichloride (MDC) prices rose by 0.1% YoY and 61.8% YoY to Rs 53%. Methanol prices rose sharply and chlorine prices rose marginally. Our analysis suggests that SRF MDC should be lower Spread/Margin. TD's NTCF prices rose 32.7% QoQ and declined 7.4% YoY to Rs 132 in Q3 2022. Since Lactam recorded Rs 161, down 1.2% YoY and up 95.3% YoY. NTCF-lactam spread stood at minus Rs. 300 as compared to minus Rs. 64 in Q2 FY2022. NTCF imports grew by 35% to 1.09 lakh units as compared to the previous year. BOPET prices rose 9.2% YoY and 33.0% YoY to Rs 148%. PTA prices rose 8.1% YoY/74.6% YoY to Rs 61% and MEG prices rose 20.4% YoY/76.6% YoY to Rs 59%. The BOPETPTA/MEG spread increased by 7.2% YoY and 7.8% YoY to Rs 75% (Rs 70 in Q2FY22). However, on a rolling basis, the spread declined by 1.8% to Rs 74 for November21 1.8%. BOPP prices rose 5.0%/30.6% YoY to Rs 18,181% and Polypropylene (PP) prices rose 13.8% YoY/60.6% YoY to Rs 110%. BOPP-PP spread declined by 6.2% YoY and increased by 1.3% YoY to Rs 71%. Navin Fluoride (NFIL): R-22 spreads improve

R-22 prices rose 28.0% and 56.9% YoY to Rs 246. Fluorite (acid crystal) prices rose 7.1% YoY and declined 3.5% YoY to Rs 28.9%. R-22 spread (Fluorite and Chloroform) stood at Rs. 145 as compared to Rs. 87 in Q2 FY2022. NFIL will be positively impacted by lower chloroform prices. Chemplast Sanmar: Lower PVC spreads

PVC Paste prices rose 0.4% YoY and 8.9% YoY to Rs 120. Chemplast acquired PVC Paste EDC, which rose 25.1% YoY/ 149.5% YoY to Rs 66%. Q3 FY2022 to TD Paste PVC-EDC spread was Rs 10 as against Rs 32 in Q2 FY2022. Suspended Polyvinyl Chloride (S-PVC) prices rose 10.2% YoY and 56.7% YoY to Rs 108%. VCM prices rose 29.1% YoY and 51.6% YoY to Rs 106%. TD's S-PVC-VCM spread stood at Rs 3 in Q3 FY2022 as against Rs 16 in Q2 FY2022. Methylene Chloride (MDC) prices increased by 0.1% YoY and 61.8% YoY to Rs 53%. Methanol prices rose sharply and chlorine prices rose marginally. Chemplast uses its own chlorine, so if MDC prices are low or flat and methanol prices are high, Chemplast spreads will be lower. Caustic soda prices rose 69.4% YoY and 125% YoY to Rs 51% (Rs 30% in FY20222). Sudashan Chemicals (SCIL) : Organic Pigments achieve 17.5% YoY growth.

Organic pigments prices increased by 2.2% YoY and 17.5% YoY to Rs. 571% in Q3 FY2022 as compared to Rs. 558 in Q2 FY2020. Organic pigments include all colors including CPC. 3QFY22-TD exports increased by 6% YoY to 20.9 kte. Prices of azo pigment blends increased by 4.1% YoY and 23.7% YoY to Rs. 482% in 2QFY2022 (Rs. 4,633). Inorganic pigments prices rose 7.4% YoY and 17.4% YoY to Rs 112% (Rs 104). Galaxy Surfactants (GSL): lauryl alcohol prices fall marginally

Lauryl alcohol prices fell 3.1% YoY to Rs 155 but rose 67.3% YoY. Compared to 1600 in Q2, prices of straight chain alkyl benzene (LAB) (a petroleum-based surfactant) declined compared to Rs. 0.5% YoY/ to 127% Rs. 65.6% 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, was Rs. 155 down 3.1% YoY, but Rs. 3.1% YoY compared to 2022 FY2Q160 vs. Rs. 67.3% YoY. Q3 FY2022-TD Acetic acid prices were at Rs. 70 (Rs. 78 in Q2 FY2022), down 10.1% YoY and up 158.4% YoY. In November 2021, prices rose 12.8% YoY to Rs 74, implying another acceleration in inflation in Q3 FY2022. Acrylic prices rose 25.8% YoY and 112.3% YoY to Rs 157 (Rs 1,255) in the same period last year). As of February 21, acrylic prices were up 9.9% YoY to Rs 164 in November. TD Silicone Oil prices rose 31.0% YoY and 85.9% YoY to Rs 395% in Q3 FY2022 (Rs 301 in Q2 FY2022). EPL Ltd: Polymer prices up again in Nov 21

LLDPE is a key raw material for laminates Prices rose by 12.1% YoY and 45.3% YoY to Rs 96% as against Rs 86 in Q2 2022. In November 2021, prices rose 4.5% YoY to Rs 98. Vinati Organics.

Ibuprofen prices rose 8.3% YoY but fell 36.8% YoY to Rs 1,239 (Rs 1,144 in FY22 V2). IBB prices were recorded at Rs 167, up 2.8% YoY (37.8% YoY). Atul Ltd.

Prices of 2,4-D rose 12.0% YoY and 55.9% YoY to Rs 167. Rs 242. Q3 FY22-TD exports grew 77.4% YoY to 5.3kte. cresol prices rose 29.5% YoY and 68.2% YoY to Rs. 239. Q3FY22-TD exports grew by 19.8% YoY to 1.9kte. epoxy resin prices were recorded at Rs 357, up 3.2% YoY and 96.1% YoY. Q3 FY22-TD exports grew by 52.4% YoY to 4.2kte. resorcinol prices declined by 18.4% YoY to remain unchanged at Rs 643 as compared to the same period last year. Exports declined by 45.5% to 323te in Q3 FY2022 as compared to the same period last year.Fluorochemicals in Gujarat

PTFE prices rose 5.7% YoY and 20.4% YoY to Rs 823% (Rs 779 in Q2 FY2022). PTFE (Fluorite) spreads increased by 5.5% YoY and 23.4% YoY to Rs. 749% (Rs. 710 in Q2 FY2022). PTFE exports grew 33.3% YoY to 2,300 units. R-prices increased by 28.0% YoY and 56.9% YoY to Rs 246. Fluorite (acid crystal) prices rose 7.1% YoY and fell 3.5% YoY to Rs 28%. R-22 spread (Fluorite and Chloroform) stood at Rs. 145 as compared to Rs. 87 in Q2 FY2022. GFL will be positively impacted by lower chloroform prices. Caustic soda prices rose 69.4% YoY and 125.3% YoY to Rs 51% (Rs 30% in FY2022 Q2). PCBL.

Carbon Black prices increased by 0.1% YoY and 47.1% YoY to Rs 87% in FY2022. Carbon Black exports increased by 25.6% YoY to 31.9 lakh units.