Feb Sees A Month On Month Decline In Chemical Pricing Trends: Emkay Global

February 2022 witnessed a MoM decline in chemical and petrochemical pricing trends after a mixed-bag performance in January 2022, Emkay Global has said in a report.

"The prices of Caustic Soda, after a sharp fall in January, recovered in February with 18% MoM gain. Acetic Acid and MDI witnessed a sharp MoM fall, while TDI and Soda Ash saw a MoM increase. The prices of Monomers and Petchem building blocks rose MoM. However, polymer prices remained marginally negative, impacting polymer margins.

The pricing environment was also adversely affected by the Chinese New Year and the Winter Olympics Games in Beijing. With the events behind us now, Chinese production is expected to see a ramp-up, leading to a better supply situation. Nonetheless, the current Russia-Ukraine conflict has led to a surge in crude prices to ~USD120/bbl, along with a rise in energy prices. This is expected to weigh on chemical and petrochemical prices in the interim," the brokerage has said.