I'm researching the prospects of a company that produces ethylene amines from the point of view of investing in their stock.
They produce ethylene amines this through the EDC (Ethylene dichloride) route and through the CPA (Crude Piparazine Anhydrous) route.
I want to understand:
1. The price trends of Ethylene dichloride and Crude Piparazine Anhydrous
2. The demand and supply of ethylene amines. I have been told supply exceeds demand for now.
This company is based in India and I know that they import Piperazine 68% Aqueous (PIP) from Dow Chemicals, USA.
I'm not sure from where they import Ethylene Dichloride from.
Can you help me understand the price trend of their two raw materials. They have confirmed that a price drop in both would benefit them.
This website gives me import pricing data for India:
[link Point to another website Only the registered members can access]
According to this, the price seems to be dropping. I see the price for EDC has slipped from 21 to even 13 per kg. Is this true?
The price for CPA seems to have risen a bit over the last year, from 76 to 81. Is this true?
[link Point to another website Only the registered members can access]
How can I find out the pricing of Dow chemicals?
Can someone help me understand the economies of scale prevalent in this industry? This company has very large underutilized capacities. As a lay person I think that since some costs will be fixed, some economies of scale are going to kick in naturally. At the same time, would the plants require a lot of maintenance when they are unused like in case of steel and cement plants?
Would a drop in ethylene or naptha prices result in a drop in price of EDC feedstock?
Thanks.I would really appreciate some guidance.



Reply With Quote

Bookmarks