Caustic soda prices dip on low demand

Prices of caustic soda in the local chemicals market have fallen in the last one month following its low demand and with local producers reducing the prices to meet competitive pressures from imports.

Caustic soda was quoted at Rs 26 a kg a month ago and it is now Rs 23. The landed cost of imported caustic soda is Rs 24.

It is learnt that local manufacturers are following a strategy to keep the prices lower than those of the imports to remain in the market. Gujarat Alkalis, TCL and Bilt are the major producers of the chemical.

The soda ash market is almost unchanged in the last few weeks with its price pegged at Rs 14 a kg.

Peroxide prices are also falling and the prices of imported peroxide have come down from Rs 26 a kg a month ago to Rs 23.50-24 a kg on the lack of demand.

Major domestic producer National Peroxide has also reduced prices from Rs 28-29 a month ago to Rs 26 a kg.

The situation is very different in some of the petrochemicals, such as phenol and acetone.

"Normally, petrochemicals follow crude oil prices, but phenol and acetone prices are going up despite a fall in crude oil prices," said Janak Ldhani, director, Sonkamal Enterprises.

In the last one-and-a-half months, the prices of these petrochemicals have gone up by almost 15 per cent. Phenol, produced by Schectedy Herdilia, is Rs 81 (exclusive of excise and other taxes), which was around Rs 71-72 a kg for tanker load.

The prices of HOC's phenol are at present around Rs 79. The international prices of phenol are around $1,390 a tonne.

Acetone prices are around Rs 48 a kg (exclusive of excise and taxes) for tanker load.

The prices were in the range of Rs 42-43 six weeks ago. HOC's acetone is quoted at Rs 46 a kg. In the international market, acetone is booked at around $930-940 a tonne and the landed cost is around Rs 41.

Around Diwali, the international prices of acetone and phenol were high and bookings from India were very low. Local manufacturers, sensing low imports, started raising the prices.

Some of the refineries in Europe and Taiwan were closed one after another for regular maintenance. Hence, despite a fall in crude oil prices, acetone and phenol prices are ruling high.

The price of propylene glycol manufactured by Manali Petro is steady at Rs 85 a kg (exclusive of excise and taxes). Its imported price is around Rs 83 a kg.