Indian Chemical Prices Rise Amid Weak Demand

Chemical prices in India rose sequentially in August due to factors such as the West Asia conflict, higher crude oil prices, and supply-chain disruptions. This led to a 28% month-on-month increase in bromine prices, crucial for companies like Archean Chemicals, GHCL, and Neogen. Other chemicals also saw price hikes: phenol by 3%, acetone by 15%, IPA by 10%, propylene by 19%, ethylene by 17%, benzene by 9%, and toluene by 6%.

However, despite these sequential increases, Q2FY27TD prices for most chemicals remained lower than their Q1FY27 levels. The report noted that demand remains soft, with customers reluctant to hold higher inventories, while imports have not improved. Prices of suspension polyvinyl chloride (PVC) increased due to the Minimum Import Price introduced by the government in July 2026.

On a positive note, 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. This leaves room for further price increases. Meanwhile, domestic caustic soda prices declined by 2%, while soda ash prices remained flat.