Chemical Stocks to Watch as Benzene Prices Surge 10% and Methanol Prices Show Mixed Trends
An increase in raw material prices may pose a risk to the business operations of a chemical company, especially where there are constraints in terms of increasing the price of the product accordingly. Benzene is one of the major raw materials needed in producing aromatic chemicals and their derivatives, whereas methanol is required to produce methylamines and chloromethanes.
Nonetheless, according to the latest market figures as at October 2026, the price of benzene was on the rise in the month of September, and methanol's price had both positive and negative developments.
Benzene Prices Rise 10.4% in September
According to Epignosis Insights' September 2026 benzene price tracker, the Cost and Freight (CFR) India benzene benchmark averaged US$1,170 per tonne in September, up 10.4% from US$1,060 per tonne in August. FOB Korea prices increased 14% month-on-month to US$1,140 per tonne, while CFR China prices rose 13.1% to US$1,165 per tonne.
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The rise was due to high crude oil prices, low production of aromatics from the refineries and naphtha crackers of Northeast Asia and low inventories in China. The refineries and naphtha crackers in this area were either running at lower production levels or were shut down completely.
High benzene prices could affect input prices for the manufacturers of downstream chemicals. This would depend on whether the manufacturers can pass on the costs through increased price levels, or have adequate inventory at lower prices, or through backward integration. These benchmarks are indicative of regional prices and do not necessarily reflect the exact prices paid by the Indian manufacturers.
Methanol Prices Show Mixed Trends
Methanol prices are showing a different pattern. Methanex's Asian contract price for October 2026 increased to US$700 per tonne from US$550 per tonne in September, a rise of approximately 27.3%.
However, the Indian spot market has softened. A market report published in early October indicated that CFR India methanol prices declined to US$544.50 per tonne on October 1, down US$7.50 per tonne from the previous day. Expectations of additional Middle Eastern supplies and subdued buying activity contributed to the decline.
This difference between contract and spot prices is important. Companies purchasing methanol under different contracts or at different delivery periods may experience different cost movements. Therefore, the October contract increase does not automatically mean every Indian chemical manufacturer will face a similar rise in methanol costs.
Chemical Stocks to Watch
Aarti Industries Ltd
The company produces chemicals that are derived from benzene. Any rise in the price of benzene will result in increased costs of production, although how this affects profitability depends on the adjustment in selling prices. Investors should follow the cost of raw materials in chemical businesses.
With a market capitalisation of Rs. 17,634 cr, the shares of Aarti Industries Ltd closed at Rs. 486.15 per share, up from its previous close of Rs. 473.90 per share.
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Deepak Nitrite Ltd
Deepak Phenolics, a subsidiary of Deepak Nitrite Ltd., is engaged in the value chain of phenol and acetone, which is connected to benzene-based feedstock. An increase in benzene-based costs may have an effect on this business, but this will be influenced by price changes.
With a market capitalisation of Rs. 22,122 cr, the shares of Deepak Nitrite Ltd closed at Rs. 1622 per share, up from its previous close of Rs. 1,617.35 per share.
Atul Ltd
The company produces a wide array of chemicals, which include intermediates and dyes. It is important for investors to assess how much of the firm's product lines are affected by raw materials whose prices have increased due to high levels of benzene. With a market capitalisation of Rs. 17,665 cr, the shares of Atul Ltd closed at Rs. 6000 per share, up from its previous close of Rs. 5,974.35 per share.
Balaji Amines Ltd
The firm is engaged in manufacturing methylamines and their derivatives, which makes methanol pricing an important factor for the firm. But the impact of changes in methanol prices will be dependent on procurement costs and product realization.
With a market capitalisation of Rs. 6,726 cr, the shares of Balaji Amines Ltd closed at Rs. 2075.90 per share, up from its previous close of Rs. 2,062.40 per share.
Chemplast Sanmar Ltd
Methanol is used in the company’s chloromethanes operations. Any change in methanol prices can affect production costs, but the total impact will be determined by product prices and the proportion of contribution to the bottom line.
With a market capitalisation of Rs. 3,308 cr, the shares of Chemplast Sanmar Ltd closed at Rs. 209.25 per share, up from its previous close of Rs. 206.40 per share.
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What Should Investors Track?
There are several indicators that investors ought to consider, such as the monthly benzene indices, the price of methanol under contracts and on the spot market, cost of purchase, selling price and profitability levels. Inventory management, backward integration and the ability to pass cost increases along to the client are other relevant indicators to consider.
The key takeaway is that rising feedstock prices do not automatically translate into lower profits. Companies with strong pricing power or integrated operations may manage cost increases better, while manufacturers unable to pass on higher input costs could face margin pressure.