SRF: R-22 price rose to Rs346/kg (+3.4% QoQ) in Q4FY23-TD; volumes were up 179.5% YoY to 0.91kte. In packaging films segment, spreads contracted QoQ for both BOPET and BOPP, which will put pressure on SRF’s packaging films margin.

Gujarat Fluorochemicals: PTFE price jumped 6.5% QoQ / 15.8% YoY to Rs1,090 while volumes fell 28.6% YoY to 0.94kte. Other fluoropolymer price was flat QoQ, and volumes surged 3.1x YoY to 314te.

Archean Chemical: Bromine price dipped 1.1% QoQ, volumes dipped 37.6% YoY to 0.85kte while SOP price dipped 17.4% QoQ.

Clean Science: Q4FY23-TD margins were likely affected by 10.8% QoQ dip in guaiacol price to Rs343, partly offset by 11.3% QoQ decline in phenol price to Rs91.

Galaxy Surfactants: Lauryl alcohol price dipped in Q4FY23-TD to Rs135, down 8.6% QoQ. This should help Galaxy improve its volumes due to reducing cost pressures on FMCG companies.

Rossari Biotech: Four key raw material prices have started falling, which has aided margin improvement.

EPL: Should see some relief in margin pressures due to fall in polymer price (down 7.7% QoQ).

Sudarshan Chemical: Pigment prices were down 4.4% QoQ and volumes were down 35.1% YoY to 6.6kte.

PCBL: Carbon black export price fell 11.5% QoQ to Rs111 and export volumes were down 19.3% YoY.

(Note: Data is for Q4FY23-TD only, includes Jan’23. All prices are in Rs/kg)

SRF Ltd: Packaging films spreads declined

· R-22 price jumped 3.4% QoQ (42.8% YoY) to Rs346 in Q4FY23-TD. Fluorspar (acid spar) price inched up 0.3% QoQ / 25.2% YoY to Rs39. R-22 spread (to fluorspar and chloroform) was Rs233 vs Rs213 in Q3FY23. R-22 price rose to Rs346, up 1.6% MoM, in Jan’23. Export volumes rose 180% YoY to 0.9kte. R-22 export volumes have started to grow again after a steep decline in CY22. We would wait to see sustainability in volume growth in R-22 which is among highly profitable products.

· MDC (methylene chloride) price rose 14.4% QoQ / down 30.1% YoY to Rs47; methanol and chlorine prices have increased. Our analysis suggests spread/margin in MDC for SRF should be lower QoQ. MDC import volumes fell 83.1% YoY to 1.5kte. MDC prices were down 13.6% MoM to Rs47 in Jan’23.

· NTCF price was down 13.5% QoQ / 44.5% YoY to Rs107 in Q4FY23-TD. Caprolactam price dipped 6.6% QoQ / 13.9% YoY to Rs136. NTCF-caprolactam spread was negative at Rs29 vs negative Rs22 in Q3FY23. Notably, NTCF import volumes rose 97.9% YoY to 3.5kte on a low base (volume dipped 42.5% MoM in Jan’23).

· BOPET price was down 4.3% QoQ / 16.2% YoY to Rs132. PTA price declined 8.9% QoQ / rose 10.6% YoY to Rs63, and MEG price was up 8.0% QoQ, but down 10.8% YoY at Rs44. BOPET-PTA/MEG spread contracted 2.6% QoQ and 31.5% YoY to Rs63 (vs Rs64 in Q3FY23). On MoM basis, spread rose 0.5% to Rs63 in Jan’23.   

· BOPP price dipped 11.9% QoQ / 22.1% YoY to Rs147 while polypropylene (PP) price rose 2.1% QoQ / down 11.3% YoY to Rs83. BOPP-PP spread contracted 25.1% QoQ / 32.8% YoY to Rs64 (vs Rs85 in Q3FY23).

Gujarat Fluorochemicals – PTFE price continues to be strong

· PTFE price was up 6.5% QoQ / 15.8% YoY to Rs1,090 (vs Rs1023 in Q3FY23). PTFE (to R-22) spread rose 13.5% QoQ, but dipped 15.8% YoY to Rs364 (vs Rs321 in Q3FY23). PTFE export volumes were down 28.6% YoY to 0.94kte.

· Other fluoropolymers price rose 0.1% QoQ / 48.5% YoY to Rs2,385 (vs Rs2,382 in Q3FY23). Export volumes surged 3.1x YoY to 314te.

· R-22 price increased 3.4% QoQ / 42.8% YoY to Rs346. Fluorspar (acid spar) price was up 0.3% QoQ / 25.2% YoY to Rs39. R-22 spread (to fluorspar and chloroform) was Rs233 vs Rs213 in Q3FY23.

· Caustic soda price dipped 4.5% QoQ / up 7.0% YoY to Rs56 (vs Rs59 in Q3FY23).

· MDC (methylene chloride) price rose 14.4% QoQ / down 30.1% YoY to Rs47 while methanol and chlorine prices have increased. Our analysis suggests spread for MDC is likely to be lower QoQ. MDC prices were down 13.6% MoM to Rs47 in Jan’23.

Archean Chemical – Bromine price is stable

· Bromine price dipped 1.1% QoQ but increased 19.4% YoY to Rs426 (vs Rs431 in Q3FY23). Export volumes were down 37.6% YoY to 0.85kte.

· SOP price dipped 17.4% QoQ / 81.3% YoY to Rs39 (vs Rs47 in Q3FY23). Export volumes were down 21.2% to 123te.

Clean Science – Guaiacol price slips on drop in phenol price

· Guaiacol price was down 10.8% QoQ, but up 7.2% YoY to Rs343 (vs Rs384 in Q3FY23).

· Phenol price dipped 11.3% QoQ / 15.5% YoY to Rs91 (vs Rs103 in Q3FY23).

· Methanol price rose 2.3% QoQ / fell 14.2% YoY to Rs26. Acetic anhydride price was down 13.5% / 23.0% YoY to Rs92.

Galaxy Surfactants (GSL): Lauryl alcohol price continues to decline

· Lauryl alcohol price stood at Rs135, down 8.6% QoQ / 29.0% YoY, vs Rs148 in Q3FY23. In Jan’23, price dipped 6.1% MoM to Rs135.

· Price of LAB (linear alkyl benzene), a petroleum-based surfactant, was down 3.0% QoQ, but up 13.3% YoY to Rs148.

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 Rs135, down 8.6% QoQ / 29.0% YoY, vs Rs148 in Q3FY23.

· Acetic acid price dipped 6.6% QoQ / 45.2% YoY to Rs38 in Q4FY23-TD (vs Rs41 in Q3FY23) and was down 5.0% MoM at Rs38 in Jan’23.

· Acrylic acid price fell 16.1% QoQ / 47.3% YoY to Rs92 (vs Rs110 in Q3FY23). It was down 10.7% MoM at Rs92 in Jan’23.

· Silicone oil price was down 19.4% QoQ / 24.3% YoY to Rs356 in Q4FY23-TD (vs Rs442 in Q3FY23).

EPL Ltd: Decline in polymer price

· Price of LLDPE, a key input for laminates, was Rs82, down 7.7% QoQ / 16.8% YoY, vs Rs89 in Q3FY23. It dipped 5.2% MoM to Rs82 in Jan’23.

Chemplast Sanmar: Timing difference distorts Q4FY23-TD PVC spreads

· Paste PVC price dipped 23.5% QoQ / 9.0% YoY to Rs133. Chemplast buys EDC for paste PVC, price of which has plummeted 45.0% QoQ / 68.5% YoY to Rs20. Paste PVC-EDC spread stood at Rs100 in Q4FY23-TD vs Rs114 in Q3FY23. EDC prices dipped 63.7% MoM to Rs20 in Jan’23.

· Suspension PVC (S-PVC) price was down 11.1% QoQ / 41.4% YoY to Rs67. VCM price dipped 4.2% QoQ / 39.7% YoY to Rs59. S-PVC-VCM spread was Rs9 in Q4FY23-TD vs Rs15 in Q3FY23. VCM price rose 6.6% MoM to Rs59.

· MDC (methylene chloride) price rose 14.4% QoQ / down 30.1% YoY to Rs47, while methanol and chlorine prices increased. Our analysis suggests spread for MDC is likely to be lower QoQ.

· Caustic soda price was down 4.5% QoQ / up 7.0% YoY to Rs56 (vs Rs59 in Q3FY23).

· Paste PVC import volumes dipped 2.7% YoY to 1.3kte; S-PVC volumes were up 35.4% YoY to 36.6kte.

Sudarshan Chemical (SCIL): Organic pigment export volumes shrink

· Organic pigment price fell 4.4% QoQ / 2.4% YoY to Rs612 in Q4FY23-TD vs Rs640 in Q3FY23. Organic pigments are inclusive of all colours including CPC. Export volumes were down 35.1% YoY at 6.6kte. There has been a slowdown in demand for pigments (particularly for plastics segment), which has hurt export volumes.

· Azo pigment mixture price was down 3.4% QoQ / 4.3% YoY to Rs501 while its export volumes fell 23.0% YoY to 3.6kte.

· Inorganic pigment price was down 9.2% QoQ / 4.1% YoY to Rs110 vs Rs121 in Q3FY23.

PCBL: Carbon black export price dipped in Jan’23

· Carbon black price was down 11.5% QoQ, but up 14.9% YoY to Rs111 (vs Rs125 in Q3FY23). Export volumes were down 19.3% YoY to 17.4kte. Price dipped 7.4% MoM to Rs11 in Jan’23.

Atul Ltd

· 2,4-D price dipped 9.3% QoQ / 19.3% YoY to Rs240. Export volumes rose 5.9% YoY to 3.4kte.

· Paracresol price dipped 12.8% QoQ / 1.9% YoY at Rs265. Export volumes were down 94.3% YoY to 55te.

· Epoxy price was down 5.8% QoQ / 26.2% YoY at Rs238. Export volumes dipped 12.3% YoY to 2kte.

· Resorcinol price dipped 11.1% QoQ / up 6.9% YoY to Rs746. Export volumes contracted 78.1% YoY to 60te.

Vinati Organics

· Ibuprofen price dipped 36.1% QoQ / 2.9 YoY to Rs961 (vs Rs1,504 in Q3FY23).

· IBB price was up 0.6% QoQ (16.8% YoY) to Rs201.