Emkay Global Financial Services has come out with their updated report on chemical sector. The research frim believes that Tata Chemicals and Coromandel Fertiliser are likely to be the major beneficiaries of these new fertiliser announcements.

Emkay Global Financial Services report: 

After a sharp upward rally over the last 2-3 months, July saw the chemical prices exhibit a muted growth. Out of the six products, which we track, only acetic acid and caustic soda reported double digit increase in prices MoM (13.4% and 14.2%). The prices of the remaining four products (Ammonium nitrate, IPA, Methanol and Soda ash) remained almost flat. We expect the recent rally in various chemical products to take a breather, thanks to the easing of crude oil prices. Crude oil prices have come down by approximately 20% to US$ 115 / barrel from its peak of US$ 146/barrel. Various dealers have mentioned that prices were stable and have not increased much in July. However, we do not expect a decline in prices in the near future since outlook on demand remains positive and crude prices are still at high levels.   

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