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Chemical, Petrochemical Prices, Margins and  Trends — February 2022 

Pricing trends: Tilted toward decline

February 2022 witnessed a MoM decline in chemical and petrochemical pricing trends after a mixed-bag performance in January 2022. The prices of Caustic Soda, after a sharp fall in January, recovered in February with ~18% MoM gain. Acetic Acid and MDI witnessed a sharp 900 16 MoM fall, while TDI and Soda Ash saw a MoM increase. The prices of Monomers and 80 Petchem building blocks rose MoM. However, polymer prices remained marginally negative, S impacting polymer margins. The pricing environment was also adversely affected by the S 500 Chinese New Year and the Winter Olympics Games in Beijing. With the events behind us 400 now, Chinese production is expected to see a ramp-up, leading to a better supply situation. 300 Nonetheless, the current Russia-Ukraine conflict has led to a surge in crude prices to ~USD120/bbl, along with a rise in energy prices. This is expected to weigh on chemical and petrochemical prices in the interim. 

Caustic Soda prices rose ~18% MoM - after seeing a sharp drop to ~USD590/MT in earlyJanuary. The prices rose steadily afterwards, reaching ~USD765/MT by Feb’22-end. Prices averaged high, which ~18% is a higher positive MoM for domestic at USD716/MT. players Domestic such as Grasim, Caustic DCM Soda Shriram, prices still Meghmani remain Finechem, GACL, TGV SRAAC and DCW.

Acetic Acid prices declined by ~16% MoM -— positive for Laxmi Organics and Jubilant Ingrevia.

Soda Ash prices up ~8% MoM-— positive for GHCL and Tata  Chemicals

Phenol/Acetone-Benz./Propylene spreads down  ~7% MoM-—negative for Deepak Nitrite.

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