Chemical prices rise in August amid West Asia conflict and crude oil hikes

Chemical prices saw a sequential increase in August 2026, driven by rising crude oil prices, supply-chain disruptions, and the ongoing conflict in West Asia. A report by Dolat Capital noted that crude oil rose approximately 10 per cent month-on-month, impacting the costs of key chemicals including benzene, toluene, methanol, propylene, and ethylene.

Specific price movements included a 28 per cent month-on-month increase in bromine, while phenol and acetone rose by 3 per cent and 15 per cent, respectively. Propylene and ethylene prices climbed 19 per cent and 17 per cent. Additionally, Wanhua announced a USD 200/MT MDI price hike due to higher raw material and energy costs.

Despite these monthly increases, the broader sector remains weak. Most chemical prices for the second quarter to date (Q2TD) of fiscal year 2027 remain significantly lower than levels seen in the first quarter. Market conditions remain mixed; for instance, while toluene diisocyanate prices remained stable, domestic caustic soda prices declined by 2 per cent, and Chinese soda ash prices fell by 8 per cent.