Consumer Durables News

The Key Takeaways From B&K Securities’ Chemical Channel Checks

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B&K Securities expects supply chains to be disrupted yet again as the Chinese new year (January 22 – February 5) approaches.

Brokerage firm B&K Securities expects demand environment for certain chemicals to remain subdued owing to a weak supply chain and a hit in demand.

A recent chemical channel check conducted by the brokerage observes that buying activity among dealers has remained muted. The brokerage has attributed the muted activity to a conscious attempt at keeping lower inventory levels and also slower demand in key markets like textiles, paints & coatings, construction chemicals, consumer durables and select pharma.

When it comes to pricing, prices have declined but that is due to a higher base. Supply side disruptions continue but those are offset by weak demand.

Crude prices have declined 10.4 percent compared to the previous quarter while the decline in petchem prices is a mixed bag. B&K Securities expects supply chains to be disrupted yet again as the Chinese new year (January 22 – February 5) approaches.

The channel check also noted that minor supply-side hiccups may not materially change the realisation of chemical commodities.

Here’s are some key highlights from B&K’s channel checks on various chemicals:

  • Chemical: Soda Ash
  • Used By: Tata Chemicals, GHCL
  • Takeaways: Demand in architectural glass has plunged while prices have not changed month-on-month
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  • Chemical: Caustic Soda
  • Used By: Gujarat Alkalies
  • Takeaways: Prices settled at Rs 55 per kg after unprecedented volatility and should remain at these levels
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  • Chemical: Refrigerant Gas
  • Used By: SRF, Navin Fluorine
  • Takeaways: Weak offtake seen in November and December
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  • Chemical: Dye Intermediates
  • Used By: Kiri Industries, Bodal Chemicals
  • Takeaways: H-Acid and vinyl Sulphone prices have witnessed a declining trend
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  • Chemical: Nitric Client
  • Used By: GNFC, Aarti Industries – Raw Material for them
  • Takeaways: Seeing supplies easing
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  • Chemical: Acetic Acid
  • Used By: GNFC
  • Takeaways: Supplies easing, prices up 8.3 percent month-on-month
  • First Published:  IST

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