Balaji Amines slips 5% on ammonia supply disruption amid West Asia jitters

Balaji Amines stock was under selling pressure after the company informed that it is facing a sharp disruption in the procurement of ammonia

Balaji Amines slipped 4.5 per cent in trade on the BSE, logging an intra-day low at ₹986.15 per share. However, at 9:23 AM, Balaji Amines’ share price slightly recovered from its intra-day low, but was still trading 2.74 per cent lower at ₹1,005. In comparison, Sensex was down 0.9 per cent at 75,352.48.  

The stock was under selling pressure after the company informed that it is facing a sharp disruption in the procurement of ammonia, a key raw material, after the ongoing war in West Asia disrupted global shipping and supply chains and led some suppliers to invoke force majeure. 

 

In its disclosure, the company said the conflict has “significantly disrupted” global logistics networks, with certain key raw material suppliers triggering force majeure clauses. This, in turn, has hit the supply of liquefied natural gas (LNG)—a key input for producing ammonia—leading several ammonia manufacturers to express their inability to supply the product during this period. 

Balaji Amines said it is experiencing “significant logistics disruptions” in procuring ammonia, which is used in the manufacture of methylamines, ethylamines, and their derivatives.  READ | Strait of Hormuz blockade: Can it lift Reliance Industries' O2C earnings? 

“Some of the plants of the company are presently non-operational,” it said, attributing the shutdowns to the non-availability of ammonia. 

The company added that the financial and operational impact of the raw material shortage cannot be estimated at this stage, given the evolving nature of the situation. 

Balaji Amines said it is monitoring developments closely and remains in continuous discussions with suppliers to explore alternative options for securing ammonia supplies. It added that it will update stock exchanges on any further material developments. 

Amid escalation in West Asia, both US President Donald Trump and Mojtaba Khamenei — who succeeded his late father and previous supreme leader Ali Khamenei — struck defiant tones on Thursday, suggesting the war may not end in the near term. The younger Khamenei said in his first statement issued since taking power that Tehran will look to open other fronts in the war if the US and Israel persist with their attacks.  

Asked whether a lack of regime change would mean failure or repeated confrontations with Iran, Netanyahu did not directly answer but said the only way to ensure Israel’s continued existence and prosperity is to “be very strong.”