Tata Chemicals falls 6.5%
Tata Chemicals is among the top three losers on the BSE currently; the stock opened weak and went down over 6.5% to an intraday low at Rs.927.50. Its 52-week low stands at Rs.773.90.
The stock price slumped after the company cut prices for light and dense soda ash by 3-4% across India.
This cut in prices follows the global trend where prices have been on a decline since March. The consistent fall in prices is on account of the huge capacity addition expected to go on stream from next month in China’s Inner Mongolia region by Yuan Xing Energy.
Though its not verified news about the capacity, news is that Yuan Xing’s capacity of 1.5 mtpa will go on stream in May’23 and this will be graded up further to 5 mtpa by Dec’23.
Given the contract prices with USA and other exports, Tata Chemicals’ Q4FY23 earnings will not be impacted but we could see some effect in H1FY24.