Chemicals News Today

India's urea output, hit by West Asia crisis, is recovering from 18 to 24 lakh tonnes monthly. Spot LNG buying increased supply to 75-80%, despite higher costs ($19.5/mmBtu), ensuring adequate fertiliser stock (180 lakh tonnes).

Indore industries face cost surges due to the West Asia war, impacting manufacturing and pharma sectors. Input prices, especially drug ingredients, surged 30-90%, leading to production cost increases, supply disruptions, and potential slowdowns for units in Madhya Pradesh.

Sanmar Group flags unprecedented price volatility and inflationary pressures in India's chemical industry due to the West Asia conflict, impacting feedstock and energy costs. Chairman Vijay Sankar notes Rs 2,500 crore invested in supply chain.

India has announced an exemption of import duty on certain chemicals. This policy change aims to support the domestic industry and potentially reduce costs for manufacturers.

BCGCL and MCL signed a land lease for India's pioneering coal to 2,000 TPD ammonium nitrate project in Odisha, spanning 350 acres. This marks a major step for coal gasification using homegrown BHEL technology, boosting self-reliance.

Government injects 4.695 trillion Won from a supplementary budget to subsidize naphtha import costs, easing the petrochemical supply crisis caused by Middle East disruptions and urging domestic supply prioritization.

Iran's Hormuz blockade severely chokes global trade beyond oil/gas. It causes shortages and price hikes for LPG (India 90% imports from Middle East), fertilizers (30% global trade), aluminum (11% price rise), and helium, impacting global markets.

The Indian Ethyl Acetate market is undergoing a period of structural repricing, moving away from historical lows toward a new, higher baseline. This shift is primarily fueled by a dramatic rise in upstream feedstock costs—specifically Acetic Acid and Ethanol—forcing major domestic producers like GNFC to implement significant price revisions. While supply remains stable, the market is characterized by "tight equilibrium" as the Pharmaceutical and Coatings industries continue to pull steady volumes.

Middle East war and Strait of Hormuz blockade cause shortages of key chemical raw materials (cyclohexane, glycols, melamine, methanol), leading to increased energy and raw material costs.

War shifts short-term PP outlook to tightness, elevating prices up to $250/mt. However, 50 million mt/year new capacity by 2030 ensures long-term oversupply, pressuring margins until 2029.