Bulk Chemicals

Bulk chemicals are considered as building blocks that require significantly large investments in industrial machinery and manufacturing plants alike, where pricing trends are driven by a typically critical demand-supply scenario. Challenges prevail for manufacturers, as bulk chemicals are deemed as pure commodities, and prices tend to be highly volatile, with little relation to the production cost. Fact.MR’s analysts provide insights on the cyclicality and demand-supply equation of bulk chemicals, enabling manufacturers to effectively monetize their investments.

The difference between import duties on finished products and raw materials is considered to be a determinant of pricing strategies for regional manufacturers of bulk chemicals. Fact.MR’s research covers in-depth market analysis of transition in import tariffs and sensitivity of margins toward changes in protection levels related to bulk chemicals. Comprehensive market analysis further elucidates the flexibility available to manufacturers to choose from various stages in the production process based on the fluctuating price trends of upstream products.

Maintaining high capacity utilization is a key agenda among bulk chemical manufacturers, as production cost is directly proportional to capacity utilization. Accessibility to advanced technology and availability of multiple manufacturing methods have simplified the choices of manufacturers pertaining to the overall production process, thereby facilitating greater economies of scale.