Chemicals Monthly Update April 2026

The chemical sector’s pricing trends remained firm during the month, supported by sustained rise in crude oil, natural gas, and energy costs. Prices of key crude-linked intermediates, such as Benzene, phenol, and propylene derivatives, rose sharply amid constrained global refinery operations, lower naphtha utilization rates, and ongoing feedstock supply disruptions. Even in the event of a ceasefire and reopening of the Strait of Hormuz, normalization of supply chains and production levels is expected to take several months, which is likely to keep oil and gas prices elevated due to persistent disruptions in global production and trade flows. The global chemical industry continues to operate in a highly volatile environment amid the ongoing US-Iran conflict, which has disrupted global oil and gas supply chains, leading to sharp increase in crude-linked feedstock prices, elevated freight costs, and supply-chain bottlenecks. LNG supply disruptions and lower cracker utilization rates across Asia have tightened the availability of key petrochemical intermediates, including ethylene, propylene, methanol, ammonia, phenol, and acetic acid, resulting in production constraints, lower inventory levels, and margin pressure across multiple chemical value chains. Despite geopolitical disruptions, China has maintained buoyant production levels across key chemicals, including caustic soda, ethylene, and soda ash, indicating that global supply conditions remain relatively adequate. However, pricing pressure from China is expected to moderate gradually following changes to export policies and the introduction of anti-dumping measures across several product categories. The Indian chemical sector is expected to remain volatile over the next few quarters as geopolitical uncertainty and elevated energy prices continue to impact global supply chains and input costs. Near-term earnings visibility for commodity and export-heavy players is likely to remain subdued due to margin pressure, delayed pass-through, and elevated logistics expenses.

Indian chemical prices showed mixed trends in April 2026, driven by sustained increases in crude oil and energy prices. Key bulk chemicals, such as Isobutanol and Acetic acid, experienced price declines of 13.3% and 5.9%, respectively. On the other hand, Benzene saw a modest rise, and Bromine increased 3.6%, likely due to steady downstream demand. Refrigerant prices also remained firm, supported by tight global supply conditions and improving demand across cooling applications. In contrast, soda ash prices moved steadily, driven by buoyant domestic demand and improving global pricing trends. Prices across aromatic and polymer-linked value chains remained elevated due to higher raw material and logistics costs.

Within the Indian chemical sector, Laxmi Organic Industries, Jubilant Ingrevia, and Deepak Nitrite are likely to face near-term margin pressure due to rising crude-linked feedstock costs. However, specialty chemical players such as Navin Fluorine International, SRF, and Aarti Industries remain better positioned, supported by differentiated product portfolios and superior pricing flexibility. Additionally, Fine Organic, Sudarshan Chemical Industries, and Neogen Chemicals are expected to experience a relatively lower impact from rising crude-linked raw material prices, given their lower dependence on crude-based feedstocks. Overall, commodity chemical players may witness sharper margin pressure, while specialty chemical companies are expected to remain relatively resilient amid ongoing input cost volatility.