Monthly Update - Chemicals Monthly Update - November 2012 - Emkay

- Emkay Chemicals Index which comprises of 35 constituents remained flat MoM during Oct'12 . Of the 35 constituents, 11 witnessed positive price changes MoM while 12 chemicals witnessed price declines MoM.. Emkay Energy Input Index declined by 3/2% MoM/YoY during Oct'12 due to decline in crude & naphtha prices. In INR terms, energy input index remained flat due to rupee depreciation

- Key chemicals like caustic soda, phos acid, acetic acid, acetone, IPA, VAM witnessed price declines from 2%-10% MoM. However, benzene, melamine, methanol, toluene witnessed price increases in low single digits

- Domestic caustic soda flake prices declined by 2% MoM during Oct'12 due to sluggish downstream demand and sufficient availability domestically. Domestic IPA prices declined by 3% MoM/4% YoY . IPA's key raw material propylene prices declined by 4% MoM

- Acetic acid prices declined by 2%MoM/22% yoy during Oct'12. Raw Material methanol prices (domestic) declined by 19% MoM during Oct'12 due to oversupply situation in domestic market. Domestic soda ash prices remained flat MoM during Oct'12 due to weak demand & sufficient inventory levels held by consumers

- Caprolactam prices remained flat at $2385/mt (1% MoM/-27% yoy) during Oct'12. Caprolactam prices continue to remain weak due to subdued demand from the downstream markets and uncertain market outlook. Benzene prices increased by 3% MoM/26% YoY to $1250/mt. Consequently, Caprolactam-Benzene spreads declined by 2% MoM/50% yoy to $1130/mt . Nylon-Caprolactam spreads increased by 2% MoM/12% yoy to $335/mt in Oct'12

- Ammonia prices remained steady at $708/mt during Oct'12 (flat MoM/7% YoY). Ammonia prices continue to rule at high levels due to supply-side constraints.

Source : Equity Bulls

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