Chemicals Monthly Update - September 2012 - Emkay

- Emkay Chemicals Index which comprises of 35 constituents increased by 1% MoM/7% YoY during Aug-12. Of the 35 constituents, 15 witnessed positive price changes MoM while 8 chemicals witnessed price declines MoM. Emkay Energy Input Index increased by 7% MoM during Aug-12 due to increase in crude oil & naphtha prices. In INR terms, energy input index increased by 8%/16% on a MoM/YoY basis.

- Key chemicals like IsoPropyl Alcohol (IPA), propylene, aniline, glycerine, acetone, ammonia witnessed moderate increase in prices. However, acetic acid, melamine & methanol prices declined MoM.

- Caustic soda prices remained firm (-1% MoM/23% YoY) due to low capacity utilization in the chlor-alkali industry. Domestic IPA prices increased by 3% MoM/14% YoY during Aug-12 . IPA's key raw material propylene rebounded (17%MoM) due to higher crude and derivative product values as well as concerns about tight supply.

- Acetic acid prices declined by 1% MoM/13% yoy during Aug-12. Raw Material methanol prices (domestic) declined by 9% MoM during Aug-12 after declining by 14% MoM during July-12. Domestic soda ash prices remained flat MoM during Aug-12 due to cautious buying.

- Caprolactam prices continued to remain depressed at $2290/mt, (-1% MoM /-35% YoY) during Aug-12 due to lower demand, subdued global macro economic outlook. However, Benzene prices increased by 3% MoM/1% YoY to $1170/mt during Aug-12. Consequently, Caprolactam-Benzene spreads stood at $1120/mt in Aug-12 (flat MoM/-53% yoy). Nylon-Caprolactam spreads stood at $315/mt in Aug-12 (flat MoM/ 54% YoY)

- Ammonia prices stood at $694/mt during Aug-12 (1% MoM/24% YoY). Ammonia prices continue to rule at high levels due to supply-side issues.

Source : Equity Bulls

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