ADVERTISEMENT

ICICI Securities: Specialty Chemicals Segment Check - Visible Recovery Sequentially

India’s specialty chemicals industry is showing signs of recovery amid an easing lockdown as volumes have improved sequentially.

A technician performs a solvent extraction to undertake stigmastadiene analysis  in the research laboratory (Photographer Angel Garcia/Bloomberg)
A technician performs a solvent extraction to undertake stigmastadiene analysis in the research laboratory (Photographer Angel Garcia/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Chemical industry has seen recovery with easing of lockdown and improvement in demand driving sequential improvement in volumes, though volumes are still down on YoY basis.

BoPET (biaxially-oriented polyethylene terephthalate) spreads have been mostly stable despite factories normalising manufacturing capacity; BOPP (biaxially-oriented polypropylene) has seen some dip.

Technical textiles’ profitability may improve sequentially on improving spreads and likely better volumes.

R-22 prices have declined on seasonality and volumes in eight months dipped only 16.5%, versus 25% cut in the second phase-down, which may hurt volumes in the next four months.

Click on the attachment to read the full report:

ICICI Securities Chemicals Sector Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.