R-22 prices dipped slightly to Rs244/kg (down 5.0% QoQ / up 37.6%) in Q4FY22-TD, but volumes were down 47.6% YoY to just 1.9kte. This could be partially due to plant shutdown for Gujarat Fluorochemicals, but we are not worried as companies sell their entire quota allocated for full year. In packaging film segment, spread has increased for both BOPET and BOPP.

This is despite anticipation of spreads dipping due to new capacity expansion, while higher margins will continue helping SRF. Lauryl alcohol prices rose again in Feb’22 and now stand at Rs181, up 15.2% QoQ. Inflation in Rossari Biotech’s four key raw materials will keep company margins under pressure. Pigment prices have increased (good for Sudarshan Chemical) on QoQ basis, but RM inflation looks far ahead.

EPL will continue to face challenges due to elevated polymer prices. PTFE prices have risen 14.8% YoY to Rs948, in-line with GFL commentary on price increase; PTFE volumes grew 13.7% YoY in Q4FY22-TD. Carbon black export price was high due to RM inflation, while spreads have been stable.

 (Note: All prices are in Rs/kg; Q4FY22 prices include data for only Jan’22 and Feb’22)

SRF Ltd: R-22 prices slightly down; packaging film spreads strong

R-22 prices declined 5.0% QoQ (up 37.6% YoY) to Rs244 in Q4FY22-TD. Fluorspar (acid spar) prices were up 7.9% QoQ / 8.4% YoY at Rs31. R-22 spread (to fluorspar and chloroform) was at Rs130 vs Rs150 in Q3FY22. R-22 prices remained unchanged to Rs244 in Feb’22. Export volumes fell 47.6% YoY to 1.9kte.·MDC (methylene chloride) prices rose 23.8% QoQ / 82.3% YoY to Rs71; methanol and chlorine prices dipped. Our analysis suggests spreads / margins in MDC for SRF should be higher.NTCF prices were up 50.2% QoQ / 13.8% YoY to Rs200 in Q4FY22. Caprolactam dipped 3.3% QoQ / rose 39.1% YoY at Rs158. NTCF-caprolactam spreads were Rs41 vs negative Rs31 in Q3FY22. Notably, NTCF import volumes dipped 32.6% YoY to 3.3kte.BOPET prices grew 3.4% QoQ / 29.9% YoY to Rs155. PTA dipped 6.7% QoQ / rose 38.0% YoY to Rs58, and MEG prices were down 18.7% QoQ / up 6.1% YoY at Rs47. BOPET-PTA/MEG spreads were up 16.0% QoQ / 30.9% YoY to Rs89 (vs Rs77 in Q3FY22). On MoM basis, spreads expanded 3.1% to Rs90 in Feb’22.BOPP price inflation was 1.1% QoQ / 23.9% YoY at Rs186 while polypropylene (PP) prices were down 15.8% QoQ / up 2.3% YoY at Rs92. BOPP-PP price spread was up 25.8% QoQ / 56.0% YoY at Rs94.

Navin Fluorine (NFIL): R-22 spread slightly moderate

R-22 prices dipped 5.0% QoQ / rose 37.6% YoY to Rs244. Fluorspar (acid spar) prices were up 7.9% QoQ / 8.4% YoY to Rs31. R-22 spread (to fluorspar and chloroform) was Rs130 vs Rs150 in Q3FY22. NFIL will be negatively impacted due to QoQ rise in chloroform prices.

Chemplast Sanmar: PVC spreads improve

Paste PVC prices were up 17.0% QoQ and 29.2% YoY to Rs146. Chemplast buys EDC for paste PVC, which is up 0.6% QoQ / 69.7% YoY to Rs70. Paste PVC – EDC spread stood at Rs30 in Q4FY22-TD vs Rs10 in Q3FY22.Suspension PVC (S-PVC) prices rose 3.1% QoQ / 58.9% YoY to Rs116. VCM prices dipped 5.9% QoQ / up 22.2% YoY at Rs101. S-PVC-VCM spreads were Rs15 in Q4FY22-TD vs Rs5 in Q3FY22.MDC (methylene chloride) prices rose 23.8% QoQ / 82.3% YoY to Rs71; methanol and chlorine prices have dipped. Our analysis suggests Chemplast spreads for MDC rose QoQ.Caustic soda prices were down 1.2% QoQ / up 107.9% YoY to Rs50 (vs Rs51 in Q3FY22).Paste PVC import volumes dipped 32.5% YoY to 2.4kte; S-PVC volumes declined 33.7% YoY to 59kte.

Sudarshan Chemical (SCIL): Organic pigment realisation expanded 23.1% YoY

Organic pigment prices rose 6.3% QoQ / 23.1% YoY to Rs626 in Q4FY22-TD vs Rs589 in Q3FY22. Organic pigments are inclusive of all colours including CPC. Their export volumes were down 8.5% YoY at 20kte. However, prices rose 2.8% MoM in Feb’22.Azo pigment mixture prices increased 6.4% QoQ / 23.9% YoY to Rs506 vs Rs476 in Q3FY22.Inorganic pigment prices were up 3.3% QoQ / 14.2% YoY to Rs114 vs Rs110 in Q3FY22.

Galaxy Surfactants (GSL): Lauryl alcohol prices hardened in Q4FY22-TD

Lauryl alcohol prices were Rs181, up 15.2% QoQ and 48.0% YoY, vs Rs157 in Q3FY22. The rise in Feb’22 was 17.1% MoM to Rs195.LAB (linear alkyl benzene), a petroleum-based surfactant, prices were down 0.7% QoQ / up 47.0% YoY to Rs129.

Rossari Biotech: Input material prices remained elevated

Rossari uses four key input materials – surfactants, acetic acid, acrylic acid, and silicone oil.Lauryl alcohol, key basic raw material for surfactants, prices were Rs181, up 15.2% QoQ / 48.0% YoY, vs Rs157 in Q3FY22.Acetic acid prices dipped 3.9% QoQ / up 61.6% YoY to Rs74 in Q4FY22-TD (vs Rs77 in Q3FY22). In Feb’22, the price was Rs67, down 15.3% MoM.Acrylic acid prices have risen 6.1% QoQ / 88.1% YoY to Rs177 (vs Rs166). Acrylic acid was Rs175 in Feb’22, down 2.2% MoM.Silicone oil prices were 11.3% QoQ and 96.8% YoY higher at Rs467 in Q4FY22-TD (vs Rs420 in Q3FY22).

EPL Ltd: Polymer prices were steady

Prices of LLDPE, a key input for laminates, were Rs99, up 1.1% QoQ / 33.1% YoY, vs Rs99 in Q3FY22. Prices dipped 4.3% MoM to Rs97 in Feb’22.

Vinati Organics

Ibuprofen prices dipped 18.3% QoQ / 55.2% YoY to Rs972 (vs Rs1,189 in Q3FY22).IBB prices rose 0.8% QoQ (36.0% YoY) to Rs171. 

Atul Ltd

2,4-D prices rose 17.2% QoQ and 79.1% YoY to Rs295. Export volumes rose 6.1% YoY to 5.6kte in Q4FY22-TD.Paracresol price inflation was 6.5% QoQ and 82.2% YoY at Rs270. Export volumes dipped 4.8% YoY to 1.9kte in Q4FY22-TD.Epoxy prices were down 7.7% QoQ and up 35.9% YoY at Rs331. Export volumes rose 33.7% YoY to 4.9kte in Q4FY22-TD.Resorcinol prices dipped 6.1% QoQ and 2.5 YoY at Rs681. Export volumes rose 205% YoY to 471te in Q4FY22.

Gujarat Fluorochemicals – PTFE prices rose sharply

PTFE prices were up 14.8% QoQ and 36.7% YoY to Rs948 (vs Rs826 in Q3FY22). PTFE (to fluorspar) spread expanded 15.5% QoQ and 40.1% YoY to Rs868 (vs Rs751 in Q3FY22). PTFE export volumes were up 13.7% YoY to 2.4kte.R-22 prices dipped 5.0% QoQ / rose 37.6% YoY to Rs244. Fluorspar (acid spar) prices were up 7.9% QoQ and 8.4% YoY to Rs31. R-22 spread (to fluorspar and chloroform) was Rs130 vs Rs150 in Q3FY22. GFL will be negatively impacted from higher chloroform prices QoQ.Caustic soda prices were down 1.2% QoQ / up 107.9% YoY to Rs50 (vs Rs51 in Q3FY22).

PCBL

Carbon black prices were up 7.2% QoQ and 33.3% YoY to Rs94 (vs Rs88 in Q3FY22). Carbon black export volumes were up 54% YoY to 38kte in Q4FY22-TD.