Bearish raw material prices stabilized the prices of Formaldehyde in India

In India, the prices of Formaldehyde were observed to be stabilized as the prices of raw material Methanol is dropping down. The Methanol prices in India was slipped to INR 32000/ton Ex-Mumbai. However, the price of Natural Gas in India stabilized to upper end with INR 296700 per 1000 MMBtu Ex-Hazira.

Shares of a few chemical manufacturers responded to the Union Budget 2022's proposed decrease in custom obligation on critical chemicals. Stocks of companies that utilize the critical chemicals as raw material flooded, while organizations that produce the chemical compounds saw a decline. The chemicals that will see an obligation decrease incorporate methanol, acidic acid and weighty feed stocks for oil refining. The stocks of organizations that use the chemicals as a raw material and subsequently, are probably going to profit from the duty cut acquired, while producers of the chemicals fell. Gujarat Narmada Valley Fertilizers and Chemicals Ltd. fell over 3%, the steepest intraday decrease in over a week, and shut with 1.17% losses. The decrease of custom duty on acidic acid prompted the decay of its shares as it is the only producers of acidic acid in India.

According to ChemAnalyst, the prices of Formaldehyde will drop in the upcoming weeks as it is expected that with tax relief the prices will slow down, and the market will likely to have sufficient supply for the downstream enterprises. Imports from Spain and Germany will more likely to reduce as the Indian market is more likely to fill with oversupplies. Downstream preservative industries are expected to operate with high efficiency is expected to utilize its existing inventories. The demand for the new stocks is expected to decrease and the buyers will purchase the product on need to basis.