homevideos Newsbusiness NewsBOPP, BOPET prices rise; Cosmo Films expects raw material shortages to continue for next 3 months
BOPP, BOPET prices rise; Cosmo Films expects raw material shortages to continue for next 3 months
Chemical stocks are rallying after a B&K report highlighted rising prices of chemicals. BOPP and BOPET prices have gone up 16.4 percent and 4.5 percent respectively. Pankaj Poddar, CEO of Cosmo Films in conversation with CNBC-TV18 said that spreads have improved on the back of supply shortage in the industry.
Chemical stocks are rallying after a B&K report highlighted rising prices of chemicals. BOPP and BOPET prices have gone up 16.4 percent and 4.5 percent respectively.
Pankaj Poddar, CEO of Cosmo Films in conversation with CNBC-TV18 said that spreads have improved on the back of supply shortage in the industry.
"There are supply shortages that we are seeing in our industry as well. Raw material has gone up by 20 percent and film prices have even gone higher by 25-30 percent. Therefore, the spreads have gone up. On average they have gone up from Rs 27-28 levels to close to Rs 40 levels," he explained.
Poddar expects Q4 to be better than Q3 on the back of improved spreads and growth in the specialty division. He expects raw material shortages to remain for the next 3 months at least.
"We expect Q4 to be better because of two reasons. One is that these spreads are going up every day. It has started happening only in the last 10-15 days, but we expect that the shortages would remain till May 2021. The other thing is our specialties is showing phenomenal growth. Last quarter we grew year-on-year (YoY) by 13% and this quarter again we expect good phenomenal growth on the specialty sales," he added.
He highlighted that despite prices are moving up, demand is getting stronger. "Demand is getting stronger for multiple reasons. One is that the food consumption and other packaging related products consumption is very robust. The second reason is whenever you have an increasing price kind of a scenario, everybody tends to buy more. So, that is also pushing demand," he stressed.
Poddar expects margins to continue to improve on the back of better product mix and on an overall basis, revenues could go up by 10 percent in FY21.
To know more, watch the video.
(Edited by : Jerome Anthony)
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