New Delhi [India], September 6 (ANI): Chemical prices increased sequentially in Aug’26, however, the sector still remains weak as compared with earlier levels, as per a report by Dolat Capital.
Chemical prices rose in August from the previous month on the back of West Asia conflict, higher crude oil prices and supply-chain disruptions. Crude oil rose about 10 per cent month-on-month, which pushed up prices of key chemicals such as benzene, toluene, methanol, propylene and ethylene.
“The West Asia conflict continued, leading to sequential price increases across several chemicals,” the report noted highlighting the “Bromine (relevant for Archean Chemicals, GHCL and Neogen) prices increased 28% MoM, although Q2FY27TD prices declined 34%.”
At the same time, phenol and acetone prices rose 3 per cent and 15 per cent month-on-month (MoM), respectively, while IPA prices increased 10 per cent; propylene and ethylene prices climbed 19 per cent and 17 per cent, respectively, and benzene and toluene prices rose 9 per cent and 6 per cent.
“Wanhua announced a USD200/MT MDI price hike in early August, following its late-July hike, citing higher raw material and energy costs and restricted global supply chains; China MDI prices rose 4% MoM,” it noted further.
Meanwhile, domestic caustic soda prices declined 2 per cent, while soda ash prices remained flat, with Chinese soda ash prices falling 8 per cent. However, despite the sequential price increases, “Q2TD FY27 prices for most chemicals remained sharply lower than Q1FY27 levels,” the report noted.
The report indicated a mixed market scenario. It noted, toluene diisocyanate (TDI) prices remained largely stable sequentially at around Rs 330 per kg, but were still 43 per cent higher than in June, while methylene diphenyl diisocyanate (MDI) prices declined 12 per cent month-on-month.
Overall demand remained subdued, with customers reluctant to maintain higher inventory levels, while imports also showed no significant improvement.
“Demand remains soft, with customers reluctant to hold higher inventories, while imports have also not improved,” it said.
The report further added that suspension polyvinyl chloride (PVC) prices increased to around Rs 95 per kg from Rs 90 per kg, supported by the Minimum Import Price introduced by the government in July 2026.
Lower-priced imports cannot be sold in the domestic market and therefore need to be re-exported, while domestic supply remains stable. Prices of acrylonitrile butadiene styrene (ABS) and polystyrene (PS) increased by around 3 per cent month-on-month to approximately Rs 180 per kg and Rs 150 per kg, respectively, as higher import prices reduced overseas supplies, while domestic manufacturers also curtailed production.
Meanwhile, demand for caustic soda has been affected by the monsoon, while lower exports have led to surplus inventories and kept prices under pressure.
On this backdrop, demand for refrigerant gases has remained firm, with R-134a prices at around Rs 850 per kg against approximately Rs 1,000 per kg in China, leaving room for further price increases. R-22 prices are around Rs 1,000 per kg and could rise by another Rs 50-200 per kg due to supply cuts.
Consumers are increasingly shifting from R-22 to R-407C, while R-32 prices remain stable at around Rs 850 per kg. “R-134a prices are at ~Rs850/kg, while Chinese prices are ~Rs1,000/kg, providing scope for further price hikes. R-22 prices are at ~Rs1,000/kg, with a further Rs50–200/kg hike possible, driven by supply cuts. Consumers are increasingly replacing R-22 with R-407C, while R-32 prices remain stable at ~Rs850/kg,” it said. (ANI)
Chemical prices recover in August but demand remains weak: Report
