Sector Chemicals & Petrochemicals - Latest news, views and updates

SECTOR | 24 May 2022

Price trends in May '22

ICICI Securities Limited

R-22 prices dipped slightly to Rs242/kg (down 5.8% QoQ / up 36.4%) in Q4FY22, but volumes were down 34% YoY to just 3.7kte, which suggests pressure on prices will continue. This means SRF’s ref-gas revenue and EBIT margin benefits are coming entirely from the HFC portfolio. Some volume impact is due to shutdown of Gujarat Fluorochemicals’ (GFL) plant, but we are not worried as companies sell their entire quota allocated for full year.

Chemicals & Petrochemicals

SECTOR | 02 May 2022

Focus on returnable glass bottles and smaller PET packs is paying off in tackling inflationary pressures : Coca-Cola India

Business Line

Chemicals & Petrochemicals

SECTOR | 18 Apr 2022

BP Equities Chemical Sector Result Preview Q4 FY22

Chemicals & Petrochemicals

BP Wealth

Better realization + Higher RM cost = Moderate earning growth in Q4 We expect the companies under our chemicals coverage to report strong revenue growth (25.3% YoY) mainly led by steady demand in end-user industries and higher realization (raw material price increase pass on). We expect moderate volume growth for most companies under our coverage universe. Due to severe disruptions on supply routes, increased freight costs continued to impact imports, resulting a jump in chemical prices in the domestic market. Behind the sharp increase in the Crude oil price (+59% YoY), the base chemicals like Benzene, Toluene, Xylene, Phenol etc. have also surged between 40-90% on a YoY basis. High input costs coupled with an abnormal increase in...

Chemicals & Petrochemicals

SECTOR | 13 Apr 2022

Good sequential EBITDA growth for most companies

Chemicals & Petrochemicals

ICICI Securities Limited

We estimate our chemical coverage universe revenues to grow 34% YoY (9% QoQ) in Q4FY22 on sharp rise in prices due to input cost inflation. However, we expect gross profit to grow 24% YoY (+5.8% QoQ), which indicates strong underlying trend led by: 1) SRF’s robust growth (37% YoY) on pricing benefit in ref-gas, 2) Gujarat Fluorochemicals (35.5% YoY) on turnaround in fluoropolymers, and 3) Navin Fluorine (34% YoY) on spillover of CRAMS revenue from Q3FY22.

Chemicals & Petrochemicals

SECTOR | 11 Apr 2022

Result Preview: Chemicals

Chemicals & Petrochemicals

ICICI Securities Limited

There was a recovery in demand in sectors such as textile, paper, metals, automobiles, pharma, etc. This should support higher volume growth for most companies under our universe, especially from pigments, dyes, soda ash industries. Further, better realisations are expected to aid the overall performance. Companies in specialty chemicals and having large order backlog in place, should sustain similar momentum as witnessed in the last quarter. We anticipate our chemical universe companies will post topline growth of 29.3% YoY for Q4FY22E....

Chemicals & Petrochemicals

SECTOR | 08 Apr 2022, 12:00AM

Chemicals

Chemicals & Petrochemicals

Prabhudas Lilladhar

Capex programmes are on track but witnessing cost overruns, because of the increase in building material costs, shipping costs etc. Chemical companies are expected to deliver improvement in performance QoQ on pass through of higher costs (without/ with a lag from previous quarters) and steady demand aided by recovery post a milder wave of covid. Petrochemical feedstock (crude oil, naphtha, natural gas) prices are up ~20% QoQ while oleochemical feedstock prices (vegetable oils viz palm, rapeseed, soyabean, sunflower oil etc) are up 10-20% QoQ, largely on Russia-Ukraine...

Chemicals & Petrochemicals

SECTOR | 08 Apr 2022, 12:00AM

Agro Chemicals

Chemicals & Petrochemicals

Prabhudas Lilladhar

by healthy performance from export oriented players like UPL, Sharda Cropchem, PI Industries and Sumitomo Chemical. Better growth from currency impact. While on the domestic front, we expect companies to post subdued growth (mid to high single digit growth YoY) led by a) seasonally lean quarter for the domestic players; b) erratic weather conditions...

Chemicals & Petrochemicals

SECTOR | 11 Mar 2022

Price trend in Jan’22

Chemicals & Petrochemicals

ICICI Securities Limited

R-22 prices rose to Rs244/kg (down 5.0% QoQ / up 37.5%) in Q4FY22-TD, but volumes were down 81% YoY to just 325te. 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 should keep helping SRF.

Chemicals & Petrochemicals

SECTOR | 21 Jan 2022

Specialty chemicals - Price trend in Nov’21

Chemicals & Petrochemicals

ICICI Securities Limited

R-22 prices rose to Rs246 (up 28.0% QoQ) in Q3FY22-TD catching up with inflation in other ref-gases, which will benefit SRF, Navin Fluorine and Gujarat Fluorochemicals (GFL). In the packaging film segment, spread has increased for BOPET but has been lower for BOPP.

Chemicals & Petrochemicals

SECTOR | 17 Jan 2022

BP Equities Chemical Sector Result Preview Q3 FY22

Chemicals & Petrochemicals

BP Wealth

We expect the companies under our chemicals coverage to report strong revenue growth (25.9% YoY) mainly led by restoration of demand in end-user industries, base effect and higher realization (raw material price increase pass on). We expect double-digit volume growth for most companies under our universe. Increased freight costs due to severe disruptions on supply routes continued to impact imports, resulting in a surge in selective chemical prices in the domestic market. The growth trajectory from the export market looks promising with the commissioning of new capacity for selective players. We believe that most chemical companies have ramped up their utilization levels, resulting in margin normalization. Overall, our Chemical coverage would post a Revenue/EBITDA/PAT growth of 25.9%/14.2%/14.1% YoY in Q3FY22. We expect the EBITDA margin of our coverage universe to contract by 187bps YoY, owing to elevated input costs, freight and power costs....