India's Chemical Prices Surge Amid West Asia Conflict, but Demand Remains Weak

Chemical prices in India have seen a sequential increase in August due to factors such as the West Asia conflict, higher crude oil prices, and supply-chain disruptions. According to a report by Dolat Capital, chemical prices rose from the previous month, with key chemicals like benzene, toluene, methanol, propylene, and ethylene experiencing price hikes.

The report notes that Bromine prices increased 28% month-on-month (MoM), while phenol and acetone prices rose 3% and 15% MoM respectively. IPA prices also increased by 10%, with propylene and ethylene prices climbing 19% and 17% respectively, and benzene and toluene prices rising 9% and 6%.

Despite the sequential price increases, Q2TD FY27 prices for most chemicals remained sharply lower than Q1FY27 levels. The report indicated a mixed market scenario, with demand remaining subdued due to customers being reluctant to hold higher inventories, while imports also showed no significant improvement.