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1) SRF: R-22 price rose to Rs345/kg (+3.1% QoQ) in Q4FY23-TD; volumes were up 4.2% YoY to 1.9kte. In packaging films segment, spreads contracted QoQ for both BOPET and BOPP, which will put pressure on SRF’s packaging films margin. 2)
Gujarat Fluorochemicals: PTFE price jumped 2.7% QoQ / 11.6% YoY to Rs1,051 while volumes fell 23.7% YoY to 1.9kte. Other fluoropolymer price dipped 3.6% QoQ, and volumes surged 2.8x YoY to 626te. 3) Archean Chemical: Bromine price dipped 0.9% QoQ, volumes dipped 48.6% YoY to 1.3kte while SOP price dipped 6.7% QoQ. 4) Clean Science: Q4FY23-TD margin was likely affected by 6.3% QoQ dip in guaiacol price to Rs360, partly offset by 11.9% QoQ decline in phenol price to Rs90. 5) Galaxy Surfactants: Lauryl alcohol price dipped in Q4FY23-TD to Rs134, down 9.2% QoQ. This should help Galaxy improve its volumes led by reducing cost pressures on FMCG companies. 6) Rossari Biotech: Four key raw material prices have fallen steeply which will aid margin improvement. 7) EPL: Should see some relief in margin pressure due to fall in polymer price (down 6.5% QoQ). 8) Sudarshan Chemical: Pigment prices were down 7.0% QoQ and volumes were down 30.5% YoY to 14kte. 9) PCBL: Carbon black export price fell 13.4% QoQ to Rs108 but export volumes were up 2.2% YoY.

SRF Ltd: Packaging films, particularly BOPP, spreads declined sharply

* R-22 price jumped 3.1% QoQ (42.4% YoY) to Rs345 in Q4FY23-TD. Fluorspar (acid spar) price inched up 2.0% QoQ / 27.3% YoY to Rs39. R-22 spread (to fluorspar and chloroform) was Rs232 vs Rs213 in Q3FY23. R-22 price dipped to Rs344, down
0.5% MoM, in Feb’23. Export volumes rose 4.2% YoY to 1.9kte. R-22 export volumes have started to grow again after a steep decline in CY22. We would wait to see sustainability in volume growth in R-22 which is among highly profitable products.

* MDC (methylene chloride) price rose 10.0% QoQ / down 32.8% YoY to Rs45; methanol and chlorine prices have increased. Our analysis suggests spread/margin in MDC for SRF should be lower QoQ. MDC import volumes rose 1.7% YoY to
10.1kte. MDC prices were down 4.6% MoM to Rs45 in Feb’23.

* NTCF price was down 14.9% QoQ / 45.4% YoY to Rs105 in Q4FY23-TD. Caprolactam price dipped 14.7% QoQ / 21.4% YoY to Rs124. NTCF-caprolactam spread was negative at Rs19 vs negative Rs22 in Q3FY23. Notably, NTCF import
volumes rose 90% YoY to 6.3kte on a low base (volume dipped 3.7% MoM in Feb’23).

* BOPET price was down 4.8% QoQ / 16.7% YoY to Rs131. PTA price declined 9.5% QoQ / rose 9.9% YoY to Rs63, and MEG price was up 7.5% QoQ, but down 11.2% YoY at Rs43. BOPET-PTA/MEG spread contracted 3.1% QoQ and 31.8% YoY to
Rs62 (vs Rs64 in Q3FY23). On MoM basis, spread declined 0.6% to Rs62 in Feb’23.

* BOPP price dipped 13.4% QoQ / 23.5% YoY to Rs144 while polypropylene (PP) price rose 2.1% QoQ / down 11.3% YoY to Rs83. BOPP-PP spread contracted 28.3% QoQ / 35.6% YoY to Rs61 (vs Rs85 in Q3FY23).

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