India Chemicals See Price Hikes Amid Weak Demand
Chemical prices in India have shown signs of recovery in August, rising due to factors such as the West Asia conflict and higher crude oil prices. However, despite these increases, demand for chemicals remains weak, with customers reluctant to hold higher inventory levels.
The report by Dolat Capital noted that key chemicals such as benzene, toluene, methanol, propylene, and ethylene saw price hikes in August. For instance, bromine prices increased 28% month-on-month, while phenol and acetone prices rose 3% and 15%, respectively.
The report also highlighted that Wanhua announced a USD200/MT MDI price hike in early August, citing higher raw material and energy costs as well as restricted global supply chains. China MDI prices rose 4% month-on-month.
Despite the sequential price increases, Q2TD FY27 prices for most chemicals remained sharply lower than Q1FY27 levels. Demand remains soft, with customers reluctant to hold higher inventories, while imports have also not improved.