A B&K Securities report stated that the blockage in the Suez Canal disturbed the supply flow and has led to short-term spike in specialty chemicals prices.
The report suggested that supply side constraints for the industry, they were improving gradually. However, the recent Suez Canal blockage has now lead to short-term spike in chemical prices and that was exciting the stocks today.
Suez Canal, according to them, is a key cargo route as it enables direct trade between India and Europe and as per their channel checks at least 26 chemical tankers are still stuck there and it’s something that could cause supply side constraint.
Watch accompanying video of CNBC-TV18’s Sonal Bhutra for more details.