Hexamine prices have continuously been rising in the Mumbai market over the past three months. Indianpetrochem reviewed the price trend for hexamine manufactured by Simalin Chemical Industries and evaluated the outlook for the chemical in the future.
Hexamine is mainly used for manufacturing solid phenolic resins in India. The other important use is for the manufacture of a high explosive cyclonie. There are mainly four national level manufacturers for Hexamine in the country, they are: Simalin Chemicals, Rockhard Petro Chemical Industries, Newton Engineering and Chemicals and Kanoria Chemicals & Industries.
Overall market trend for the chemical has been bullish for the past few months. The upswing in prices is mainly due to the rising prices of Formaldehyde, which is the feedstock for Hexamine, and Methanol, which in turn is the feedstock for Formaldehyde.
The website spoke to company officials from Kanoria Chemicals and Simalin Chemicals, and determined that the price of Hexamine isn't increasing proportionally to the prices of Formaldehyde in India.
This is impacting the margins of domestic manufacturers for the chemical because international prices for Formaldehyde aren't rising proportionally to the Indian prices.
Hence, the competitiveness of Indian producers for the chemical is under serious threat against cheaper imports.
Our conversation with few manufacturers revealed a sluggish demand outlook for the chemical in the future due to rising cost of the chemical in the Indian market.
Indianpetrochem evaluated the market price trend for Simalin Chemicals and noted that, in November, the chemical was selling for Rs.100 per kg (exclusive of VAT) in the Mumbai market. Thereafter, the prices increased by Rs. 10- 12 per kg to current trading levels of Rs.120- 122 per kg (exclusive of VAT) in Mumbai market.
A company official from Simalin went on to add that the basic price for the chemical from the company is roughly at Rs. 92 per kg while the basic port price for the chemical from imports is approximately around Rs. 85 per kg.
While the anti-dumping duty for Hexamine imported from Saudi Arabia and Russia has been extended till 23rd January, 2018. Domestic manufacturers aren't sure if this will positively impact the Indian markets because they consider the anti-dumping duty inconsequential in maintaining their competitiveness in the Indian market.
The demand outlook for Hexamine is expected to remain weak until the Indian prices move in a downward direction, according to market sources.
By Ntasha Berry
ntasha.berry@indiapetrochem.com
Hexamine is mainly used for manufacturing solid phenolic resins in India. The other important use is for the manufacture of a high explosive cyclonie. There are mainly four national level manufacturers for Hexamine in the country, they are: Simalin Chemicals, Rockhard Petro Chemical Industries, Newton Engineering and Chemicals and Kanoria Chemicals & Industries.
Overall market trend for the chemical has been bullish for the past few months. The upswing in prices is mainly due to the rising prices of Formaldehyde, which is the feedstock for Hexamine, and Methanol, which in turn is the feedstock for Formaldehyde.
The website spoke to company officials from Kanoria Chemicals and Simalin Chemicals, and determined that the price of Hexamine isn't increasing proportionally to the prices of Formaldehyde in India.
This is impacting the margins of domestic manufacturers for the chemical because international prices for Formaldehyde aren't rising proportionally to the Indian prices.
Hence, the competitiveness of Indian producers for the chemical is under serious threat against cheaper imports.
Our conversation with few manufacturers revealed a sluggish demand outlook for the chemical in the future due to rising cost of the chemical in the Indian market.
Indianpetrochem evaluated the market price trend for Simalin Chemicals and noted that, in November, the chemical was selling for Rs.100 per kg (exclusive of VAT) in the Mumbai market. Thereafter, the prices increased by Rs. 10- 12 per kg to current trading levels of Rs.120- 122 per kg (exclusive of VAT) in Mumbai market.
A company official from Simalin went on to add that the basic price for the chemical from the company is roughly at Rs. 92 per kg while the basic port price for the chemical from imports is approximately around Rs. 85 per kg.
While the anti-dumping duty for Hexamine imported from Saudi Arabia and Russia has been extended till 23rd January, 2018. Domestic manufacturers aren't sure if this will positively impact the Indian markets because they consider the anti-dumping duty inconsequential in maintaining their competitiveness in the Indian market.
The demand outlook for Hexamine is expected to remain weak until the Indian prices move in a downward direction, according to market sources.
By Ntasha Berry
ntasha.berry@indiapetrochem.com
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