Acetic Acid Weekly Report 02 Dec 2017

Weekly Price Trend: 27-11-2017 to 01-12-2017

• The above given graph focuses on the Acetic Acid price trend from 27th Nov 2017 to 1st Dec Nov 2017. If we take a quick look at the above given weekly prices, it can be observed that there has been significant hike in domestic values.
• By end of this week, prices were assessed at the level of Rs.52/Kg for Kandla and for Mumbai port for bulk quantity.

Booking Scenario

INDIA& INTERNATIONAL

• Domestic prices of Acetic acid assessed around Rs.52/Kg for Kandla and Mumbai ports of India.
• Market has been at its all time high due to limited supply of the chemical. There has been noticeable variation in domestic values. With ongoing winter season there has been slowdown in supply of natural gas which in turn has led to slowdown in the production of Methanol and Acetic Acid.
• International prices were assessed at the level of CFR India USD 590/MTS, slightly reduced 20/MTS in compare to last week’s closing values.
• During this winter season most of the major producers of Iran shut their unit either for maintenance or due to shortage in the supply of natural gas.
• There has been tightened supply of Acetic Acid in China market. Prices have been gaining in domestic market after long time. Inventories are now in China market. Like Iran Chinese government has asked manufacturers to slowdown production using natural gas. But here the concern is of increasing pollution.
• This week crude oil prices have followed mixed trend. On Thursday oil prices have escalated OPEC members, Russia and nine other producers agreed to extend a deal to limit their production through 2018.
• On Thursday, closing crude values have increased. WTI on NYME closed at $57.40/bbl; prices have decreased by $0.10/bbl in compared to last closing prices. While Brent on Inter Continental Exchange increased by $0.46/bbl in compared to last trading and was assessed around $63.57/bbl
• As per report, the producers will indeed review the deal at the next OPEC meeting in June. Some markets were concerned that a nine-month extension could cause markets to quickly tighten, leading to undersupply that results in a price spike. Oil watchers also warn that a rise in prices will give U.S. shale drillers an incentive to flood the market. Russia has expressed concern that its oil companies will continue to lose market share to American producers, who are exporting record levels of crude.

1$ : Rs. 64.46
Import Custom Ex. Rate USD/ INR: 66.20
Export Custom Ex. Rate USD/ INR: 64.50